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in Redding, CA
Two strong government-backed options exist for Redding buyers. FHA and VA loans both offer low barriers to entry — but they serve very different borrowers.
VA is the better deal if you qualify. Zero down, no mortgage insurance, and typically lower rates. FHA fills the gap for everyone else.
FHA loans require just 3.5% down with a 580 credit score. Drop to 500-579 and you need 10% down — but you can still get approved.
Every FHA loan carries mortgage insurance. You pay an upfront premium at closing plus a monthly charge for the life of the loan.
VA loans are for veterans, active-duty members, and eligible surviving spouses. No down payment. No monthly mortgage insurance. That combination is rare.
VA does charge a one-time funding fee at closing. It varies by service history and down payment. First-time VA users without a disability pay 2.15%.
The biggest gap is mortgage insurance. VA has none. FHA charges it every month, adding hundreds to your payment on a Redding-priced home.
Credit flexibility is similar on paper. Both programs work with scores in the 580-620 range. VA lenders in practice often want 620+.
If you've served, use your VA benefit. The savings over 30 years are significant. No down payment plus no mortgage insurance is a hard combination to beat.
If you're a civilian buyer with solid but imperfect credit, FHA is your path. It's designed for exactly that borrower — and it closes reliably in Shasta County.
No, not on the same property. Eligible veterans should compare both and choose. VA almost always wins on total cost.
VA requires an appraisal by a VA-approved appraiser. A separate inspection is optional but strongly recommended.
VA rates are typically lower. Lenders take on less risk with the VA guarantee. Rates vary by borrower profile and market conditions.
Yes. But most veterans are better off with VA. FHA's monthly mortgage insurance costs more over time.
The VA has no official minimum. Most lenders in practice require 620. We work with lenders flexible down to 580.
Veterans with a service-connected disability rating are exempt from the fee. Ask us to check your eligibility before you assume you owe it.