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in Willits, CA
Both FHA and VA loans help Willits buyers with limited cash reserves. FHA requires 3.5% down and accepts credit scores as low as 580.
VA loans eliminate the down payment entirely but require military service. We compare both to show which saves you more money upfront and over time.
FHA loans let you buy with just 3.5% down if your credit score hits 580. Scores between 500-579 require 10% down.
You'll pay upfront mortgage insurance (1.75% of loan amount) plus annual premiums between 0.45%-1.05%. These costs stick around for the loan's life on most FHA mortgages.
Debt-to-income ratios can go up to 50% with strong compensating factors. FHA accepts recent credit issues like bankruptcies after waiting periods.
VA loans require zero down payment for eligible veterans and active-duty service members. There's no minimum credit score requirement, though most lenders want 620 or higher.
You pay a one-time funding fee (2.3% for first-time use with zero down) but no monthly mortgage insurance. This alone saves $100-300 monthly versus FHA.
VA allows debt ratios above 50% with residual income guidelines. Sellers can pay all closing costs, and you can finance the funding fee into the loan.
The biggest split is upfront cost. FHA needs 3.5% down plus closing costs while VA needs nothing down if the seller covers costs.
Monthly payments differ significantly due to mortgage insurance. FHA charges ongoing premiums while VA has none, saving around $150-250 monthly on a typical Willits home.
VA funding fees are higher than FHA upfront insurance but eliminate the monthly drain. Over 30 years, VA typically costs $30,000-50,000 less in total insurance charges.
If you qualify for VA benefits, use them. The monthly savings and zero down requirement beat FHA in almost every scenario.
FHA makes sense when you don't have military service or you're buying a fixer-upper VA won't approve. FHA accepts properties in rougher condition than VA appraisers allow.
For Willits buyers stretching their budget, VA's elimination of mortgage insurance means you can afford more house. FHA works when VA isn't available and you need the lower credit score flexibility.
No, VA loans require you occupy the property as your primary residence. You must move in within 60 days of closing and live there at least one year.
VA loans typically price 0.25%-0.50% lower than FHA rates. The government guarantee reduces lender risk, passing savings to borrowers.
Yes, refinancing to conventional with 20% equity eliminates FHA mortgage insurance. Many borrowers do this after 3-5 years of appreciation and principal paydown.
Yes, your VA entitlement restores after selling and paying off the previous VA loan. You can even use it multiple times simultaneously with remaining entitlement.
FHA and VA take similar timeframes, usually 30-45 days. VA appraisals sometimes take longer due to stricter property condition requirements.