Are you trying to decide between a VA loan and a conventional mortgage for a home in Cheyenne or greater Laramie County? You are not alone. The choice affects your down payment, monthly payment, appraisal repairs, and how competitive your offer looks. In this guide, you will learn the key differences, what matters in our local market, and a simple plan to move forward with confidence. Let’s dive in.
VA vs. conventional at a glance
A VA loan is designed for eligible service members, veterans, certain reservists, and some surviving spouses. You need a Certificate of Eligibility, and you must plan to live in the home as your primary residence. Conventional loans are open to any qualified buyer and cover primary homes, second homes, and investment properties.
Eligibility and occupancy
- VA loans require proof of service and a valid Certificate of Eligibility. You can request one through your lender or directly using the Certificate of Eligibility guidance on VA.gov.
- VA loans expect you to occupy the home as your primary residence, typically within a reasonable time after closing, often around 60 days.
- Conventional loans do not have a military service requirement and can be used for second homes or investment properties if you qualify.
Down payment, PMI, and funding fee
- VA often allows 0 percent down for eligible buyers. There is no monthly private mortgage insurance.
- VA loans typically include a one-time funding fee unless you qualify for an exemption. Check current rules and exemption details on VA.gov’s funding fee page.
- Conventional loans can start with as little as 3 percent down for certain programs. If you put less than 20 percent down, you will likely pay monthly private mortgage insurance until you build enough equity. See the CFPB explanation of private mortgage insurance for how PMI works and when it can end.
Loan limits and entitlement
- For buyers with full VA entitlement, there is effectively no county loan cap. If you have remaining entitlement or another VA loan, limits can apply. Your lender can confirm your status.
- Conventional conforming loans follow annual limits. For 2024, the baseline conforming loan limit for most counties is $766,550, according to the FHFA’s 2024 conforming loan limit announcement.
What affects payment and cash to close
Your total cost comes from down payment, closing costs, mortgage insurance or funding fee, interest rate, and how your credit and debts stack up with underwriting.
Up-front and recurring costs
- Down payment: VA often requires no down payment. Conventional usually ranges from 3 to 20 percent depending on your program and goals.
- Mortgage insurance vs. funding fee: VA has no monthly PMI, which can lower your monthly payment. The VA funding fee is a one-time cost and can be financed into the loan. Conventional loans typically require monthly PMI when you put less than 20 percent down, but PMI can be removed when you reach enough equity.
- Closing costs and seller help: Both loan types allow seller-paid costs within program rules and lender guidelines. Ask your lender to explain caps and what is allowed so you can structure a strong offer.
Credit, DTI, and reserves
- Conventional pricing and PMI are sensitive to credit tiers. Higher scores often get lower rates and cheaper PMI.
- VA uses residual income guidelines and can be more flexible on debt-to-income when you have strong compensating factors like steady income.
- Lenders may ask for reserves depending on the property type and your file. This varies by lender and program.
Appraisals and property condition in Cheyenne
Cheyenne has a mix of older ranch-style homes, historic properties, and rural homes with well and septic. Weather can be tough on roofs, foundations, and exterior systems. These realities play into appraisal outcomes and repair requests.
VA appraisal and MPRs
- VA appraisals determine value and check Minimum Property Requirements for safety, sanitation, and structural soundness. Review how VA describes appraisals and MPRs on VA.gov’s home purchase page.
- Common local items that can trigger repairs include roof condition, peeling paint on older homes, outdated or unsafe electrical, heating reliability, and visible foundation issues. For rural properties, well and septic systems may need inspections.
- If the appraiser calls for repairs, they must be completed before closing unless your lender allows a compliant holdback. Reinspections can add time.
Conventional appraisal flexibility
- Conventional appraisals focus on market value. Lender repair requirements are based on risk and overlays rather than a single MPR framework.
- Some lenders allow escrowed repairs or different timing for fixes. Flexibility depends on the lender and the type of issue.
Local issues to watch
- Older systems: Many Cheyenne homes have aging roofs, plumbing, or HVAC that may come up in appraisals or inspections.
- Rural utilities: In parts of Laramie County, wells and septic systems are common. Expect documentation and tests to confirm acceptable operation.
- Weather impact: Freeze-thaw cycles can affect exterior surfaces, grading, and foundations. Address visible safety items early to avoid delays.
When to choose VA or conventional
Both loan types can be great tools. The best choice depends on your eligibility, your cash on hand, and the property you want to buy.
When VA fits best
- You are eligible for VA benefits and want to minimize cash to close with 0 percent down.
- You want no monthly PMI and competitive interest rates.
- You plan to live in the home and may consider an owner-occupied 2–4 unit property.
- Your credit is still improving, but you have strong income and residual income.
When conventional fits best
- You are not eligible for VA benefits.
- You want an investment property or second home.
- You have 20 percent or more for a down payment and prefer to avoid a funding fee.
- The property condition might trigger extensive VA repairs, and a conventional route could provide more flexibility depending on the lender.
- You are competing in a multiple-offer situation where a seller prefers conventional terms. Preferences vary by seller and market conditions.
Other decision factors
- Entitlement and reuse: If an existing VA loan uses part of your entitlement, talk with a VA-savvy lender about your remaining benefit and options.
- Closing speed and certainty: Well-prepared VA and conventional loans often close on similar timelines. VA appraisals can run longer if repairs are needed, so anticipate issues early.
- Renovations: VA renovation loans exist but are less common. If you plan significant work, discuss conventional rehab options with your lender.
Your local game plan
A clear plan helps you write stronger offers and avoid surprises, especially with older homes or rural systems.
Pre-shopping checklist for military buyers
- Get your Certificate of Eligibility through a lender or directly on VA.gov.
- Gather service records, such as a DD-214 for veterans or current active-duty documentation.
- Pull your credit and clean up any easy-to-fix items.
- Save for closing costs and a maintenance cushion, even if you plan on 0 percent down.
- Get a full pre-approval from a VA-approved lender. If you are comparing options, also get a conventional pre-approval to understand side-by-side numbers.
- Team up with a local agent experienced with VA transactions to help position your offer and plan for appraisal repairs.
Documents you will need
- Certificate of Eligibility and service proof
- Recent pay stubs and W-2s, or full tax returns if self-employed
- Bank statements and documentation for any gift funds
- Government-issued ID and Social Security number
Typical timeline in Laramie County
- Pre-approval: 1 to 7 days depending on how quickly you provide documents.
- Appraisal: 1 to 3 weeks. VA can run longer if repairs and reinspections are required.
- Underwriting and closing: Often 2 to 4 weeks after appraisal, depending on the lender and the file.
Helpful local resources
- VA benefits and loan details: COE, funding fee, and appraisal information are on VA.gov.
- PMI basics and cancellation: See the CFPB guide to PMI.
- Conforming limits: Review the FHFA conforming limit announcement for this year’s baseline.
Final thoughts
If you are VA-eligible, a VA loan often reduces your up-front cash and monthly cost by eliminating PMI. If you want a second home, an investment property, or you plan a large down payment, conventional can be a better fit. In Cheyenne, older homes and rural systems can influence appraisal outcomes. The key is to anticipate repairs, choose a lender experienced with your loan type, and write a clean, confident offer.
Ready to compare numbers for a specific home and craft a winning strategy? Connect with Asha Bean to align your financing with the right property and move forward with confidence.
FAQs
VA appraisal vs. conventional in Cheyenne: Will a VA loan pay less?
- VA appraisals set market value and check health and safety items, so they do not aim to lower value, but required repairs can affect timing and negotiation if they are significant.
Seller decision-making: Can a seller refuse a VA loan?
- Sellers choose which offers to accept based on terms, and while no law forces acceptance of VA financing, rejecting buyers based solely on veteran status can raise legal concerns.
Using a VA loan for a condo in Cheyenne
- You can use a VA loan if the condo project is VA-approved, so check approval status early with your lender to avoid delays.
VA funding fee exemptions and who qualifies
- Certain veterans with service-connected disabilities or who receive VA compensation may be exempt from the VA funding fee, which your lender and VA.gov can confirm.
Multi-unit properties in Laramie County with a VA loan
- VA allows purchase of 1 to 4 units if you will live in one unit as your primary residence, subject to underwriting and MPRs.
Closing timelines: Are VA loans slower in Cheyenne?
- Well-prepared VA loans often close on timelines similar to conventional, but appraisals can take longer if repairs and reinspections are needed, so plan ahead with your lender and agent.
