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in Folsom, CA
Folsom sits in Sacramento County with a competitive housing market. Two government-backed loans dominate here: FHA and VA.
Both offer below-market advantages over conventional loans. But they serve very different borrowers — and the gap matters.
FHA loans let you buy with 3.5% down and a 580 credit score. That's hard to beat for first-time buyers without large savings.
The catch is mortgage insurance. FHA charges an upfront premium plus a monthly fee — and it doesn't drop off automatically.
VA loans require zero down payment. No private mortgage insurance either — that saves eligible borrowers hundreds per month.
You need a Certificate of Eligibility and sufficient service history. Folsom's military community near Mather and Beale makes VA a real factor here.
Local decision guide
Use this comparison to weigh FHA Loans and VA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Folsom.
Folsom sits in Sacramento County with a competitive housing market. Two government-backed loans dominate here: FHA and VA.
Both offer below-market advantages over conventional loans. But they serve very different borrowers — and the gap matters.
FHA loans let you buy with 3.5% down and a 580 credit score. That's hard to beat for first-time buyers without large savings.
The biggest gap is cost. VA borrowers skip monthly mortgage insurance entirely. Over five years that adds up to real money.
Credit flexibility slightly favors FHA. VA has no official minimum, but most lenders want 620. FHA approves at 580 with 3.5% down.
If you served, VA wins almost every time. The monthly savings and zero-down structure are hard to match with any other program.
If you didn't serve, FHA is your strongest low-down-payment option in Folsom. It gets buyers in the door with limited cash and imperfect credit.
Yes. VA allows zero down payment. You'll still need funds for closing costs, though sellers can cover those.
Not automatically on most FHA loans. If you put less than 10% down, it stays for the loan's life.
VA rates are typically lower. Rates vary by borrower profile and market conditions, but VA's guarantee reduces lender risk.
It's a one-time fee — usually 2.15% for first-time use — paid at closing or rolled into the loan. Some veterans are exempt.
Yes, if you're an eligible veteran. We'd almost always recommend VA — the math favors it for most borrowers.
FHA has a loan limit in Sacramento County. VA removed its loan limits for full-entitlement borrowers in 2020.