Loading
Loading
Chico's moderate home prices make VA loans particularly powerful for veterans. You can buy without a down payment in a market where most conventional buyers need $50,000+ saved.
The VA guarantee removes PMI regardless of your equity position. That's $200-300 monthly savings on a typical Chico purchase compared to low-down conventional loans.
Interest rate policy shifts expected later in 2026 could create refinance opportunities for veterans. Locking a VA loan now protects you if rates drop further this year.
VA Loans in Chico
You need a Certificate of Eligibility from the VA showing sufficient service time. Most veterans with 90+ days active duty during wartime or 181+ days during peacetime qualify.
Credit requirements are flexible—many VA lenders approve 580+ scores. We've closed VA loans in Chico with credit in the low 600s when compensating factors are strong.
Income verification follows standard mortgage rules. You need steady employment and a debt-to-income ratio typically under 41%, though VA allows exceptions to 50%+ with residual income.
Local decision guide
Use this guide to connect va loans eligibility, lender expectations, and local market factors before comparing payment options in Chico.
Chico's moderate home prices make VA loans particularly powerful for veterans. You can buy without a down payment in a market where most conventional buyers need $50,000+ saved.
The VA guarantee removes PMI regardless of your equity position. That's $200-300 monthly savings on a typical Chico purchase compared to low-down conventional loans.
Interest rate policy shifts expected later in 2026 could create refinance opportunities for veterans. Locking a VA loan now protects you if rates drop further this year.
Not all lenders price VA loans the same. We see 0.25%-0.50% rate spreads between aggressive VA lenders and those who treat it as a side product.
VA funding fees vary by down payment and usage. First-time users pay 2.15% with zero down, which can be financed into the loan. Subsequent use increases to 3.3%.
Seller concessions up to 4% let you cover closing costs without cash. In Chico's market, sellers often agree to 2%-3% concessions when inventory sits.
VA appraisals are stricter than conventional on property condition. Peeling paint, broken railings, or roof issues flag as required repairs before closing.
Chico has solid inventory of single-family homes that pass VA inspection. We steer clients away from fixer-uppers unless they're prepared for repair negotiations.
Veterans with 10%+ VA disability get funding fee waived entirely. That's $6,000+ saved on a $300,000 purchase—make sure your lender applies the exemption.
FHA requires 3.5% down plus lifetime PMI until you refinance. VA eliminates both obstacles, saving $15,000+ upfront and $200+ monthly on a median Chico home.
Conventional loans need 5% down minimum and PMI until 20% equity. Veterans choosing conventional over VA leave thousands on the table unless they're buying a second home.
USDA offers zero down in rural Butte County but has income limits. VA has no income caps and works anywhere in Chico, including areas above USDA thresholds.
Chico State area sees strong rental demand if you buy and later PCS. VA loans allow rental income on multi-units if you occupy one unit initially.
Butte County rebuilding from past fires means newer construction stock. VA loans work well on new builds, and builders often pay closing costs to move inventory.
Chico's veteran population gives local appraisers solid comp experience. You won't face delays from appraisers unfamiliar with VA guidelines like in smaller markets.
Yes, if you occupy one unit as your primary residence. VA allows up to four units with zero down, making Chico's rental market accessible to investors.
VA requires repairs completed before closing. We negotiate seller credits or contractor holdbacks to handle minor issues without killing the deal.
Not typically. Lenders may require 1-2 months reserves on multi-units or high DTI situations, but most Chico purchases close with minimal cash.
Yes, if you intend to occupy the home as your primary residence. You can buy before PCS or retirement and rent temporarily until you move.
First-time users pay 2.15% of the loan amount. It's added to your mortgage balance. Disabled veterans and surviving spouses are exempt.
Most single-family areas qualify. We see smooth transactions in Barber, Doe Mill, and near Bidwell Park where homes meet VA condition standards.