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in Auburn, CA
Both FHA and VA loans offer easier qualification than conventional mortgages, but they serve different buyers. FHA loans work for anyone who qualifies — first-timers, repeat buyers, anyone with decent credit and 3.5% down.
VA loans beat FHA on nearly every metric, but you need military service to qualify. Auburn buyers often ask which one saves more money long-term.
FHA loans require just 3.5% down with a 580 credit score, or 10% down if your score sits between 500-579. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums that last the loan's life if you put down less than 10%.
These loans cap at $766,550 in Placer County for 2024. Sellers can contribute up to 6% toward your closing costs, which helps Auburn buyers stretch their cash further.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee ranging from 1.4% to 3.6% depending on down payment and whether you've used the benefit before.
VA loans cap at $766,550 in Placer County without requiring a down payment. Above that amount, you'll need 25% of the difference between purchase price and the county limit.
VA loans beat FHA on upfront and monthly costs. FHA charges 1.75% upfront plus 0.55%-0.80% annually for mortgage insurance that never drops off with minimum down payment. VA charges a one-time fee and nothing monthly.
FHA accepts anyone with qualifying income and credit. VA demands military service — active duty, veterans with honorable discharge, National Guard with six years service, or surviving spouses. Property standards differ too: VA appraisers scrutinize safety issues FHA might overlook.
If you qualify for VA, use it. You'll save tens of thousands over the loan term through lower rates and no monthly insurance. The only time FHA makes sense for eligible veterans is when you've exhausted your VA entitlement on another property.
For non-military Auburn buyers, FHA opens doors conventional loans don't. You can buy with credit scores that would disqualify you elsewhere, and the 3.5% down requirement beats the 5%-20% conventional lenders demand from borrowers with similar credit profiles.
Yes, but it costs more. VA loans charge no monthly insurance and typically offer better rates than FHA.
FHA typically closes 2-3 days faster. VA appraisals take longer because inspectors check more safety items.
FHA accepts manufactured homes built after 1976. VA allows them but requires permanent foundation and land ownership.
Yes, through VA streamline refinance. You'll eliminate mortgage insurance and likely lower your rate.
Both work, but VA has stricter condo approval requirements. FHA-approved projects often qualify easier than VA-approved ones.