Question 1

What credit score do I need for a community mortgage in Chico?

Accepted Answer

Most programs accept 580-620 scores. Some lenders go lower when you have strong compensating factors like steady employment or cash reserves.

Question 2

Can I use community mortgages for investment properties?

Accepted Answer

No. These programs require owner occupancy. You must live in the property as your primary residence for at least 12 months after closing.

Question 3

How do community mortgage rates compare to conventional loans?

Accepted Answer

Expect rates 0.25-0.75% higher than conventional. The premium buys flexibility on credit, income, and down payment that conventional loans won't accept.

Question 4

Do community mortgages work for Chico's older housing stock?

Accepted Answer

Yes. These programs use flexible property standards that accommodate deferred maintenance. Appraisers focus on habitability rather than cosmetic perfection.

Question 5

Can I combine community mortgages with down payment assistance?

Accepted Answer

Absolutely. Most community lenders encourage stacking grants and assistance programs. This combination often gets buyers into homes with zero cash from pocket.

Question 6

What makes me eligible for a community mortgage in Butte County?

Accepted Answer

Income level, property location, or membership in underserved groups qualify you. Each lender defines eligibility differently based on their community focus.

Community Mortgages in Chico: Flexible Paths to Homeownership