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Colusa is a small Central Valley town where home prices stay well below California's statewide averages. That makes FHA loans a strong fit — you're not stretching the program's limits here.
FHA loan limits for Colusa County sit below the high-cost thresholds you see in the Bay Area. For most buyers here, that ceiling is plenty.
580 (3.5% down)
Min Credit Score
3.5%
Min Down Payment
1.75% upfront MIP
Mortgage Insurance
43%
Max DTI (typical)
Government-backed
Loan Type
FHA Loans in Colusa
To qualify, you need a 580 credit score for the 3.5% down option. Drop below 580 but stay above 500, and lenders require 10% down.
Debt-to-income ratio matters too. Most FHA lenders cap total debt at 43% of gross income, though some go higher with strong compensating factors.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in Colusa.
Colusa is a small Central Valley town where home prices stay well below California's statewide averages. That makes FHA loans a strong fit — you're not stretching the program's limits here.
FHA loan limits for Colusa County sit below the high-cost thresholds you see in the Bay Area. For most buyers here, that ceiling is plenty.
To qualify, you need a 580 credit score for the 3.5% down option. Drop below 580 but stay above 500, and lenders require 10% down.
Most retail banks offer FHA loans, but their overlays — internal rules stricter than FHA minimums — vary widely. One bank might require a 620 score where FHA only requires 580.
Working with a broker who shops wholesale lenders gives you access to lenders with fewer overlays. In a smaller market like Colusa, that flexibility matters.
The biggest FHA mistake I see in rural markets: buyers assume any FHA-approved lender knows rural appraisals. Not true. FHA appraisers must flag property condition issues — an older Colusa home may need repairs before closing.
Get a pre-listing inspection if you're the seller. For buyers, build repair contingencies early. FHA appraisals are not just value checks — they're condition checks too.
If you've served in the military, VA loans beat FHA on almost every metric — no down payment, no mortgage insurance, often lower rates. Rates vary by borrower profile and market conditions.
USDA loans are another strong alternative for Colusa buyers. Parts of Colusa County may qualify for USDA's zero-down program. That's worth checking before defaulting to FHA.
Colusa County is agricultural. That means properties with outbuildings, irrigation equipment, or large lots. FHA has strict rules about non-residential mixed-use features on financed properties.
A lender unfamiliar with ag-adjacent properties may kill your deal at underwriting. Make sure your lender has closed FHA loans on similar rural California properties before.
Colusa County falls under standard FHA limits, not high-cost. Check current HUD limits — they update annually and directly cap what you can borrow.
FHA will finance the residential portion. Large acreage or working farm operations can complicate approval — your lender needs to review carefully.
Yes. FHA charges an upfront MIP of 1.75% plus an annual premium. It stays for the life of the loan if you put less than 10% down.
USDA offers zero down if the property and buyer qualify. FHA requires at least 3.5% down but has fewer property location restrictions.
FHA minimum is 580 for 3.5% down. Some lenders layer on overlays and require 620 or higher — shop around before assuming you don't qualify.
FHA closing costs are similar statewide. Appraisal fees may run slightly higher in rural markets due to fewer comparable sales and longer appraiser drive times.