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in Willows, CA
Willows buyers face a clear choice: conventional financing or VA loans for eligible veterans. The right pick depends on your military service and how much you can put down.
Most Glenn County borrowers default to conventional loans without checking if they qualify for VA benefits. Veterans leaving money on the table is more common than you'd think.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You need 620 credit minimum and proof of stable income through W-2s or tax returns.
Down payments start at 3% for first-time buyers, but you'll pay PMI until you hit 20% equity. Rates vary by borrower profile and market conditions based on your credit score and loan-to-value ratio.
These loans work for primary homes, second homes, and investment properties in Willows. Loan limits in Glenn County are $806,500 for single-family homes in 2025.
VA loans are backed by the Department of Veterans Affairs for eligible service members. No down payment required and no PMI ever, regardless of loan amount.
You pay a one-time funding fee instead of monthly mortgage insurance. Most veterans pay 2.15% upfront, which can be rolled into the loan amount.
Credit requirements are more flexible than conventional, though most lenders want 580 minimum. Only works for primary residences in Willows, not rentals or second homes.
The down payment gap is huge. VA borrowers keep their cash while conventional buyers need $12,000 to $60,000 down on a typical Willows home.
Monthly costs diverge fast. A $400,000 purchase with 5% down costs $200-250 more monthly on conventional due to PMI versus VA's zero mortgage insurance.
Property standards differ too. VA requires stricter inspections than conventional, which can kill deals on older Willows properties needing work.
If you have a Certificate of Eligibility and plan to live in the home, VA wins hands down. The zero down and no PMI combination saves tens of thousands over the loan term.
Conventional makes sense for veterans buying rentals, needing a second home, or purchasing properties that won't pass VA inspection standards. You're also not limited by VA loan limits if buying above $806,500.
Non-veterans don't have a choice here. But if you served and qualify, using anything else leaves money on the table unless you have specific property needs VA can't accommodate.
Probably not. VA requires properties to be move-in ready with working systems and safe conditions. Most fixer-uppers fail VA inspection standards.
$200-300 monthly is typical on 5% down purchases. That's $2,400-3,600 yearly until you hit 20% equity through payments or appreciation.
Not anymore. Both loan types close in 25-35 days with responsive borrowers. VA inspections add maybe 3-5 days if the appraiser's backlogged.
Yes if you're receiving disability compensation or are a surviving spouse. Otherwise, you'll pay 2.15% to 3.3% depending on down payment and prior use.
VA typically beats conventional by 0.25% to 0.5% due to government backing. Rates vary by borrower profile and market conditions based on your credit and loan amount.