Question 1

What is the 2026 conforming loan limit in Butte County?

Accepted Answer

The 2026 conforming limit is $832,750. VA loans also cap at that amount. Loans above $832,750 are jumbo and carry different terms.

Question 2

Is Gridley an FHA high-cost area?

Accepted Answer

No. Gridley is not an FHA high-cost area. The FHA limit for 2026 is $541,287. Standard FHA rules apply here.

Question 3

What credit score do I need for a conventional loan?

Accepted Answer

Conventional loans typically start at 640 FICO. FHA allows 580 FICO minimum. Some lenders go lower with compensating factors.

Question 4

How much down payment eliminates PMI on a conventional loan?

Accepted Answer

20% down eliminates PMI on a conventional loan. Below 20%, PMI applies. PMI cancels automatically at 78% LTV.

Question 5

What does the new behavioral health center mean for Gridley?

Accepted Answer

The $7 million center expands mental health services locally. Better access to care matters for families planning to stay long-term.

Question 6

Can I get a VA loan with zero down?

Accepted Answer

Yes. VA loans allow zero down for eligible veterans and active-duty service members. No PMI applies. A funding fee replaces it.

Question 7

What is the FHA down payment minimum?

Accepted Answer

FHA requires 3.5% down minimum with a 580+ FICO score. Upfront mortgage insurance is 1.75% of the loan amount.

Question 8

How long does closing typically take?

Accepted Answer

Typical closing timeline is 30 to 45 days from application to funding. Gridley's smaller market may move slightly faster or slower.

Question 9

Do I need to be a first-time buyer for FHA?

Accepted Answer

No. FHA loans are available to any borrower who meets credit and down-payment requirements. First-time status is not required.

Question 10

What is the VA funding fee?

Accepted Answer

The VA funding fee is 2.15% at zero down for first-time use. Subsequent VA loans cost 3.3%. Veterans with 10%+ disability rating are exempt.

Question 11

Can I refinance to remove PMI?

Accepted Answer

Yes. Once your loan balance drops to 80% LTV, you can refinance to remove PMI. Appraisal and closing costs apply.

Question 12

What does Butte County's median income tell me about affordability?

Accepted Answer

Butte County's median is $68,574. That income typically supports a purchase around $250,000 to $300,000 with standard debt ratios.

Question 13

Is VA funding fee waived for disabled veterans?

Accepted Answer

Yes. Veterans with a 10% or higher VA disability rating are exempt from the funding fee. Bring your disability rating letter to closing.

Question 14

What happens if I put down less than 20% on a conventional loan?

Accepted Answer

PMI applies below 20% down. PMI protects the lender if you default. It cancels at 78% LTV or when you refinance.

Gridley mortgage questions answered