Veteran customers have inquired about whether they can buy a home with a VA loan. They have heard that they can start without a down payment, but they often feel overwhelmed by the specific procedures and requirements. In areas like Riverside, where there is a significant military population, such inquiries are particularly common.

Riverside has a notable presence of active duty, reserve, and veteran families, partly due to the nearby Air Reserve Base. If someone has served honorably for over six years in the reserves or has been activated for more than 90 days on active duty, they may qualify for a VA loan.

Looking at Riverside's housing prices, the median sale price is $644,649 (Redfin, June 2026, down 0.82 percent from the previous year). Zillow's self-estimated price index shows a similar figure at $652,797. It's important to determine which option is actually more advantageous when comparing VA loans to conventional loans at this price point.

The biggest advantage of a VA loan is that it can have a 0 percent down payment and no PMI. However, there is a funding fee that ranges from 1.25 to 3.3 percent of the loan amount. For families that can prepare some down payment, it's advisable to compare the total costs alongside conventional loans. Riverside County is not a high-cost area according to FHFA, so the 2026 conforming loan limit is $832,750, meaning properties in this price range are unlikely to require jumbo loans.

The customer who inquired about the VA loan ultimately received approval for a conventional loan at a rate similar to that of a VA loan without a down payment. Having a good credit score helped, but what made the closing process smoother was deciding in advance whether to include the funding fee in the loan principal or pay it in cash.

Riverside is home to California Baptist University and the University of California, Riverside campus, which attracts inquiries from investors looking at rental demand along with school districts. Families moving from out of state should also consider that property taxes and auto insurance rates may differ significantly from their previous residence.

The funding fee varies depending on whether it's the first time using a VA loan or a subsequent use. The funding fee rate differs for first-time users compared to those who have used it before, so it's important to accurately convey your usage history to the loan officer. Veterans with a recognized disability rating may have their funding fee waived, so it's worth checking this as well. If applying jointly with a spouse, the income aggregation criteria may change, so it can be helpful for couples to consult together. If a spouse has recently settled in the U.S. through marriage or employment immigration, it's also wise to clarify how income recognition may vary based on immigration status.

For families without military experience, they can choose between conventional and FHA loans based on their credit score and down payment capacity. If the credit score is above 680 and they have close to a 20 percent down payment, a conventional loan is favorable; otherwise, opting for an FHA loan may be a more realistic choice. When deciding between the two loans, it's accurate to compare the total costs by adding up the total interest, PMI, and MIP.

The downtown Riverside area does not fall under the USDA loan-designated rural areas, but some areas on the outskirts of the county may qualify, so it's safe to check by address. Families moving from out of state should also keep in mind that the structure of property taxes and insurance may differ from their previous residence. For properties near school districts preferred by Korean families, it's advisable to refer to ratings from GreatSchools or Niche, but since school district boundaries change frequently, it's best to verify the assigned school for the specific address before purchasing. This article is not investment or legal advice, and it's recommended to consult with a loan officer and experts before finalizing any contracts.