Loading
in Portola, CA
Portola's rural location and affordable mountain properties attract both first-time buyers and veterans. Both FHA and VA loans work well here, but the right choice depends on your military status and upfront cash.
FHA loans require just 3.5% down with credit scores as low as 580. VA loans eliminate the down payment entirely but only serve eligible military members and their families.
FHA loans accept credit scores down to 580 with 3.5% down, or 500 with 10% down. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums of 0.55-0.85% for the loan's life.
In Portola, FHA loans work for single-family homes, condos in approved projects, and manufactured homes on permanent foundations. The property must meet HUD minimum standards, which can be an issue with older mountain cabins needing updates.
VA loans require zero down payment and don't charge monthly mortgage insurance. You'll pay a one-time funding fee of 2.3% for first use, which can be rolled into the loan amount.
Sellers can pay all your closing costs on VA loans, a major advantage in Portola where cash-strapped buyers can close with minimal out-of-pocket expense. The property must meet VA minimum property requirements, similar to FHA but sometimes more flexible on rural features.
The down payment gap matters most. FHA needs 3.5% minimum while VA requires nothing. On a $300,000 Portola home, that's $10,500 saved upfront with VA.
Long-term costs flip the equation. FHA's lifetime mortgage insurance adds $137-$212 monthly on that same loan. VA's funding fee is one-time only, saving roughly $40,000 over a 30-year loan even after accounting for the upfront cost.
If you're eligible for VA benefits, use them. The zero-down feature and lack of monthly mortgage insurance beat FHA in nearly every scenario, especially on Portola's affordable homes where you can avoid bringing much cash to closing.
FHA makes sense only when VA isn't available. It's the best government option for non-military buyers who lack 20% down, particularly those with credit scores in the 580-640 range who'd struggle qualifying for conventional loans.
Both programs require the property to meet safety standards. Cabins needing major repairs like new roofs or failing septic systems won't qualify until fixed.
VA loans typically price 0.25-0.50% lower than FHA. Rates vary by borrower profile and market conditions, but VA consistently wins on pricing.
No, VA loan eligibility never expires. You can use your benefit whenever you're ready to buy in Portola or anywhere else.
Yes, but you'll need to refinance into a conventional loan once you hit 20% equity. That means closing costs and requalifying at current rates.
Yes, if the home is on a permanent foundation and you own the land. The manufacturer must be VA-approved and the home built after June 1976.