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in Citrus Heights, CA
Both FHA and VA loans offer government backing that makes homeownership more accessible in Citrus Heights. These programs help buyers who might struggle with conventional loan requirements get approved with less money down.
The right choice depends on your military service history and financial situation. Each loan type has distinct advantages that appeal to different buyers in Sacramento County.
FHA loans require just 3.5% down and accept credit scores as low as 580. The Federal Housing Administration insures these mortgages, which encourages lenders to approve buyers with modest savings or past credit issues.
Borrowers pay mortgage insurance premiums throughout the loan life in most cases. This includes an upfront premium and monthly payments that protect lenders against default.
FHA loans work well for first-time buyers and those rebuilding credit. Available to all qualified borrowers regardless of military service.
VA loans require zero down payment for eligible veterans, active-duty service members, and qualifying spouses. The Department of Veterans Affairs guarantees these loans as a benefit for military service.
No monthly mortgage insurance keeps ongoing costs lower than FHA options. Borrowers pay a one-time funding fee that varies based on down payment amount and whether it's your first VA loan.
VA loans often feature competitive interest rates and more flexible credit guidelines. This benefit recognizes military service and helps veterans build equity from day one.
The biggest difference is eligibility: anyone can apply for FHA loans while VA loans require military service connection. VA loans eliminate the need for any down payment, whereas FHA requires at least 3.5%.
Monthly costs differ significantly. FHA borrowers pay ongoing mortgage insurance premiums that add to their payment. VA borrowers avoid this expense but pay a funding fee upfront, which can be rolled into the loan amount.
Both programs accept flexible credit profiles, though VA loans often provide more lenient debt-to-income ratios. Interest rates vary by borrower profile and market conditions, but VA loans typically secure competitive terms due to the government guarantee.
Choose VA loans if you qualify through military service. The zero down requirement and no monthly mortgage insurance make this the strongest option for eligible veterans and service members in Citrus Heights.
FHA loans serve buyers without military connection who need low down payment options. This program helps first-time buyers, those with limited savings, or borrowers rebuilding credit get approved.
Consider your total costs over time. VA loans typically cost less monthly despite the upfront funding fee. FHA loans provide access when VA eligibility doesn't exist.
No, VA loans require military service connection. Some surviving spouses of veterans may qualify. FHA loans offer similar benefits without service requirements.
VA loans typically have lower monthly payments because they don't require ongoing mortgage insurance. FHA payments include monthly insurance premiums that continue for the loan's life in most cases.
Yes, both FHA and VA loans can be used anywhere in Sacramento County including Citrus Heights. Property must meet program requirements and appraisal standards.
Only by putting down at least 10% and refinancing after 11 years. Most FHA borrowers pay mortgage insurance for the loan's entire term.
No, the VA funding fee is not refundable. However, veterans with service-connected disabilities are exempt from paying this fee entirely.