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in Colusa, CA
Colusa buyers have two strong options: conventional financing and VA loans for those who've served. The right choice depends on your military status and down payment capacity.
VA loans eliminate down payments entirely for eligible veterans. Conventional loans offer flexibility but require minimum 3% down and stricter credit standards.
Conventional loans work through any lender with 3-20% down depending on your credit. You'll pay PMI under 20% down, but you can drop it once you hit 20% equity.
Credit needs sit at 620 minimum, though 680+ gets better rates. Debt-to-income can't exceed 50% in most cases, and you'll need two years of stable income history.
VA loans let eligible veterans buy with zero down payment. No PMI ever, regardless of down payment amount, which saves hundreds monthly compared to conventional.
You'll pay a VA funding fee of 2.3% for first-time zero-down use, though disabled veterans skip it entirely. Credit standards are more lenient than conventional at similar rates.
The down payment gap is massive. VA requires nothing while conventional needs at least 3%, meaning $12,000+ on a typical Colusa home. That's cash freed up for moving costs or repairs.
Monthly payments favor VA significantly. No PMI saves $100-200 monthly compared to conventional loans under 20% down. Over 30 years, that's $36,000-72,000 in your pocket instead of an insurance company's.
If you're eligible for VA, use it. The zero-down feature and no PMI beat conventional in almost every scenario unless you're buying investment property, which VA doesn't allow.
Conventional makes sense when you have 20%+ down ready and want investment flexibility. It's also your only option if you don't qualify for VA benefits or already used your entitlement on another property.
Yes, if you have remaining entitlement. Most veterans have enough to use VA benefits multiple times, especially after selling a previous VA-financed home.
$100-200 monthly is standard with less than 20% down. That's $1,200-2,400 yearly until you reach 20% equity through payments or appreciation.
Both take 30-45 days typically. VA requires a VA appraisal which adds 5-7 days, but otherwise timelines match conventional loans closely.
Yes, if you receive VA disability compensation. Active-duty service members on their first use also get reduced funding fees of 2.3% instead of higher repeat-use rates.
Some do, unfairly. VA appraisals require certain property standards, but eligible buyers should always lead with VA if it's their strongest financing option.