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in Williams, CA
Williams sits in rural Colusa County, where government-backed loans open doors that conventional financing often can't. Both FHA and VA loans offer lower barriers to entry than standard mortgages.
The right choice depends on your military service history and how much cash you can bring to closing. One requires a small down payment; the other requires none at all.
FHA loans require just 3.5% down if your credit score hits 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums that last the loan's life on most purchases.
These loans accept credit scores as low as 500 with 10% down. Debt-to-income ratios can stretch to 50% with strong compensating factors, making them accessible for buyers with past credit challenges.
VA loans require zero down payment for eligible veterans and active-duty service members. You'll pay a one-time funding fee that ranges from 1.4% to 3.6% based on down payment and first-time use.
No monthly mortgage insurance exists on VA loans. The program accepts lower credit scores than conventional loans and doesn't cap debt-to-income ratios with a hard number, using residual income calculations instead.
Down payment splits these programs apart. FHA needs 3.5% minimum while VA requires nothing upfront for eligible borrowers, saving thousands on a Williams home purchase.
Monthly costs differ sharply. FHA charges ongoing mortgage insurance that never drops off on loans over 90% LTV. VA eliminates monthly insurance entirely, reducing your payment by $100-300 monthly on typical loan amounts.
Choose VA if you're eligible. The zero down payment and eliminated monthly insurance create savings that dwarf any funding fee you'll pay, especially on longer-term ownership.
Pick FHA when VA isn't an option or you're buying a property that doesn't meet VA's stricter condition standards. FHA accepts more property types and forgives cosmetic issues that VA appraisers flag.
No, you must choose one program per purchase. VA benefits always outweigh FHA for eligible borrowers due to zero down and no monthly insurance.
FHA typically closes 1-2 weeks faster because VA requires additional property inspections and appraisal reviews. Both average 30-45 days total.
Sellers often favor FHA slightly because VA appraisals can flag property repairs that FHA overlooks. Strong offers overcome any program preference.
Only if you put 10% or more down initially. Standard 3.5% down FHA loans carry insurance for the entire loan term.
FHA accepts 580 for 3.5% down. VA has no official minimum, but most lenders require 620-640 for approval.