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in Chico, CA
Two government-backed loans dominate Chico's entry-level market. FHA and VA each solve a different problem for buyers.
FHA is open to almost anyone with decent credit. VA is exclusively for veterans and service members — but it's a far better deal if you qualify.
FHA loans require just 3.5% down with a 580 credit score. Drop to 500 and you can still qualify — but you'll need 10% down.
The catch is mortgage insurance. FHA charges an upfront fee plus monthly premiums for the life of the loan on most terms.
VA loans require zero down payment and no monthly mortgage insurance. For eligible buyers in Chico, that's a significant monthly savings.
You need a Certificate of Eligibility to prove military service. Most lenders also want a 620 credit score, though VA itself sets no minimum.
Local decision guide
Use this comparison to weigh FHA Loans and VA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Chico.
Two government-backed loans dominate Chico's entry-level market. FHA and VA each solve a different problem for buyers.
FHA is open to almost anyone with decent credit. VA is exclusively for veterans and service members — but it's a far better deal if you qualify.
FHA loans require just 3.5% down with a 580 credit score. Drop to 500 and you can still qualify — but you'll need 10% down.
The biggest gap is mortgage insurance. VA has none. FHA borrowers pay it every month, which raises the effective cost of the loan.
FHA is more forgiving on credit. VA is stricter in practice, even without an official minimum. Rates vary by borrower profile and market conditions.
If you served, use your VA benefit. No down payment plus no monthly mortgage insurance makes it the stronger loan in almost every scenario.
If you're a civilian buyer in Chico with limited savings and a 580+ credit score, FHA gets you into a home with minimal money down.
Yes, VA loans work in Chico like any other city. You need a valid Certificate of Eligibility proving military service.
VA rates are typically lower than FHA rates for qualified borrowers. Rates vary by borrower profile and market conditions.
FHA charges an upfront premium plus monthly MIP. On most 30-year loans, it stays for the life of the loan.
Yes, eligible borrowers can finance 100% with no down payment. A one-time VA funding fee applies and can be rolled into the loan.
FHA is more lenient on credit, accepting scores as low as 580. VA has no official minimum but most lenders want 620+.
Yes. Eligible surviving spouses of veterans can use VA loan benefits, including the zero down payment option.