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in Colfax, CA
Both FHA and VA loans help Colfax buyers who don't have 20% down. The main difference: VA loans require military service but offer better terms.
FHA loans work for anyone with decent credit. VA loans beat them on rates and costs—if you qualify through military service.
FHA loans need just 3.5% down with credit scores as low as 580. You'll pay mortgage insurance for the life of the loan unless you refinance later.
Sellers in Placer County often accept FHA offers when properly structured. These loans allow higher debt ratios than conventional—up to 50% in some cases.
VA loans require zero down and charge no monthly mortgage insurance. You pay a one-time funding fee—typically 2.3% for first use—that can roll into your loan.
Rates run about 0.25% lower than FHA on average. Sellers pay your closing costs in many deals, and appraisers must verify the home meets VA property standards.
Down payment separates these programs most. FHA needs 3.5% minimum while VA offers true zero-down financing for eligible veterans.
Monthly costs favor VA significantly. No mortgage insurance versus FHA's 0.85% annual premium makes a $400,000 loan cost $283 less per month with VA.
Property standards differ too. VA appraisers flag issues FHA might pass—peeling paint, roof condition, water heaters. This protects you but can complicate rural Colfax purchases.
Pick VA if you have the military eligibility. Lower rates and no mortgage insurance outweigh any funding fee you'll pay upfront.
Choose FHA when you're not military-connected or the property won't pass VA standards. Older Colfax homes sometimes need repairs before VA approval.
Some veterans still use FHA—usually when their VA entitlement is tied up in another property or when the funding fee creates cash flow issues.
Yes, your entitlement restores after selling and paying off the previous VA loan. You can also buy again with remaining entitlement while keeping your first VA property.
Only if you put down 10% or more—then it drops after 11 years. With 3.5% down, it stays for 30 years unless you refinance to conventional.
FHA typically closes slightly faster because VA appraisals require stricter property inspections. Both usually close in 30-40 days with complete documentation.
Most sellers accept both when priced right. VA's appraisal requirements sometimes concern sellers with older properties that need minor repairs.
Yes, but you rarely need to since VA allows zero down. FHA pairs well with California down payment assistance programs for non-veterans.