Question 1

What's the conforming loan limit in Butte County for 2026?

Accepted Answer

The 2026 conforming limit is $832,750. Loans above that amount are jumbo and carry different rates and down-payment rules. Most Paradise purchases fall within conforming range.

Question 2

How much do I need to put down to buy in Paradise?

Accepted Answer

Conventional loans typically require 5% to 20% down. FHA allows 3.5% down but caps at $541,287 in Butte County. VA loans allow zero down up to $832,750. Your choice depends on cash available and credit score.

Question 3

Do I need 20% down to avoid PMI?

Accepted Answer

Yes — 20% down is the only way to skip PMI on a conventional loan. Below 20%, mortgage insurance applies until you reach 20% equity or refinance. FHA always includes mortgage insurance regardless of down payment.

Question 4

Is Butte County an FHA high-cost area?

Accepted Answer

No. Butte County is not an FHA high-cost area, so the standard FHA limit of $541,287 applies. This keeps FHA accessible for moderate-priced homes across Paradise.

Question 5

What credit score do I need to qualify?

Accepted Answer

Conventional loans typically require 620 FICO minimum; most lenders prefer 640+. FHA accepts 580 FICO with 3.5% down or 500 FICO with 10% down. VA has no hard floor but most lenders want 620+.

Question 6

How long does closing take in Paradise?

Accepted Answer

Standard closing takes 30 to 45 days from application to funding. Cash offers and refinances can close faster. Local title companies in the Chico area typically handle escrow within that window.

Question 7

What are typical closing costs in Butte County?

Accepted Answer

Closing costs run 2% to 5% of the loan amount. Lender fees, title insurance, appraisal, and escrow make up most of it. Some lenders offer credits; ask about options during rate lock.

Question 8

Can I get a VA loan with zero down in Paradise?

Accepted Answer

Yes. VA loans allow zero down up to the county limit of $832,750. You'll pay a funding fee (1% to 3.6% of the loan) rolled into the loan amount. No PMI applies.

Question 9

How does the Chico Area Recreation and Park District affect property values?

Accepted Answer

Strong parks and summer camps draw families to the area and support property demand. Homes near recreation facilities and schools typically hold value better. This matters for long-term appreciation in Paradise.

Question 10

What's the income requirement to qualify in Paradise?

Accepted Answer

Debt-to-income ratio matters more than absolute income. Most lenders cap DTI at 43% to 50%. With Butte County's median income at $68,574, a household earning that amount can typically qualify for a $300,000 to $400,000 loan.

Question 11

Can I lock my rate before closing?

Accepted Answer

Yes. Rate locks typically run 30, 45, or 60 days. Locking early protects you if rates rise. If rates fall, some lenders allow one rate-lock extension or a float-down at closing.

Question 12

When can I remove PMI from a conventional loan?

Accepted Answer

PMI cancels automatically when you reach 22% equity (78% LTV) through appreciation or paydown. You can request removal at 20% equity if you've paid on time. Refinancing also removes PMI if rates drop.

Question 13

Is a jumbo loan necessary for homes above $832,750 in Paradise?

Accepted Answer

Yes. Any loan above the $832,750 conforming limit is jumbo. Jumbo rates are typically higher, down payments start at 10%, and approval takes longer. Few jumbo sales occur in Paradise given local prices.

Question 14

Do I need to sell my current home before buying in Paradise?

Accepted Answer

Not necessarily. Bridge loans and contingent offers exist, but they're complex. Lenders prefer you to close on the new purchase after the old sale settles. Talk to your lender about your timeline early.

Paradise mortgage questions and home loan FAQ