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Gridley is a small agricultural city in Butte County. Home prices here run well below California's coastal markets.
FHA loan limits for Butte County sit above most local sale prices. That means most Gridley buyers can use FHA without hitting a ceiling.
580 (3.5% down)
Min Credit Score
3.5%
Min Down Payment
1.75% of loan
Upfront MIP
Up to 57%
Max DTI
Fixed or ARM
Rate Type
FHA Loans in Gridley
FHA requires a 580 credit score to put 3.5% down. Drop below 580 and you'll need 10% down — but approval is still possible.
Debt-to-income ratios can stretch to 57% with strong compensating factors. That's more room than most conventional loans allow.
Most retail banks offer FHA, but their overlays — internal rules stricter than FHA minimums — can kill a deal. We work with 200+ wholesale lenders who compete on price and flexibility.
Wholesale FHA pricing is almost always sharper than what a big bank quotes. Rates vary by borrower profile and market conditions.
FHA's mortgage insurance premium (MIP) is the cost most buyers underestimate. You pay an upfront MIP of 1.75% plus an annual premium built into your monthly payment.
With enough equity, refinancing into a conventional loan later removes MIP. In Gridley's price range, that crossover can happen faster than buyers expect.
USDA loans are worth a hard look in Gridley. Parts of Butte County qualify for USDA's zero-down rural program — which beats FHA's 3.5% minimum.
VA loans win on cost if you've served. No MIP, no down payment required. For everyone else, FHA is typically the most accessible entry point.
Gridley's rural character means some properties — older farmhouses, manufactured homes on land — need extra scrutiny. FHA has strict property condition standards.
A home that needs a new roof or has deferred maintenance can stall or kill an FHA appraisal. Know this before you make an offer on a fixer.
FHA sets county-level limits that change annually. In Butte County, limits typically cover most Gridley purchase prices — confirm the current limit before shopping.
Yes, but separate FHA rules apply. The home must meet HUD standards and be on a permanent foundation.
Not automatically on most FHA loans. You'd need to refinance into a conventional loan once you reach enough equity.
FHA allows it. Chapter 7 requires a 2-year wait. Chapter 13 may qualify after 12 months of on-time payments with court approval.
It's the minimum at 580+ credit. If your score is between 500 and 579, FHA requires 10% down instead.
Banks have internal overlays that can tighten FHA rules. A broker shops across lenders to find one whose guidelines actually fit your file.