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Willits sits in the heart of Mendocino County — rural, affordable by California standards, and often overlooked by big-bank lenders.
FHA loans fit this market well. Flexible credit requirements and low down payments match the buyer profile here.
580 (3.5% down)
Min Credit Score
3.5%
Min Down Payment
1.75% of loan
Upfront MIP
0.55% (most loans)
Annual MIP
43%
Max DTI (standard)
FHA Loans in Willits
You need a 580 credit score to put 3.5% down. Drop below 580 and you need 10% down — but you can still qualify.
FHA requires two years of employment history and a debt-to-income ratio under 43%. Some lenders 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 Willits.
Willits sits in the heart of Mendocino County — rural, affordable by California standards, and often overlooked by big-bank lenders.
FHA loans fit this market well. Flexible credit requirements and low down payments match the buyer profile here.
You need a 580 credit score to put 3.5% down. Drop below 580 and you need 10% down — but you can still qualify.
Local bank options in Willits are thin. Most borrowers here need to work with a broker to reach wholesale FHA lenders.
At SRK CAPITAL, we access 200+ wholesale lenders. That means we can shop your FHA file for the best rate available to you.
FHA has an upfront mortgage insurance premium of 1.75% of the loan amount. That gets rolled into the loan — most buyers don't pay it out of pocket.
Annual MIP runs 0.55% on most 30-year loans. It doesn't drop off automatically unless you put 10% down — that's a detail many borrowers miss.
USDA loans are worth a hard look in Willits. Much of Mendocino County qualifies for USDA, which offers zero down — better than FHA's 3.5%.
If you have VA eligibility, that beats FHA almost every time. No MIP, no down payment, and typically lower rates. Rates vary by borrower profile and market conditions.
FHA appraisals in rural Mendocino can be tricky. Appraisers must flag health and safety issues — older homes here sometimes require repairs before closing.
Well and septic properties are common in Willits. FHA allows them, but both systems need to meet HUD guidelines and pass inspection.
Yes. FHA has no rural exclusions. Any property meeting HUD condition standards qualifies, regardless of location.
Yes, but both systems must pass inspection and meet HUD guidelines. Budget for that testing upfront.
Loan limits are set by county and updated annually by HUD. Ask us for the current Mendocino County limit before you shop.
On a 30-year loan with less than 10% down, MIP lasts the life of the loan. Put 10% down and it drops after 11 years.
Often yes. USDA offers zero down in eligible rural areas. We check both programs for every Willits buyer we work with.