Loading
in Dorris, CA
Both FHA and VA loans offer low-barrier financing for Dorris homebuyers. FHA requires just 3.5% down and accepts credit scores around 580, while VA loans offer zero down for eligible military borrowers.
The right choice depends on your military status and cash reserves. If you qualify for a VA loan, you'll typically save thousands by skipping both down payment and mortgage insurance.
FHA loans work for Dorris buyers with limited savings and credit challenges. You can get approved with a 580 credit score and just 3.5% down, making homeownership accessible even in rural Siskiyou County.
The tradeoff is mortgage insurance that lasts the life of the loan. You'll pay an upfront premium of 1.75% plus monthly premiums around 0.55% to 0.85% of your loan amount annually.
VA loans are available to active-duty military, veterans, and surviving spouses buying in Dorris. You can finance 100% of the purchase price with no monthly mortgage insurance, which saves hundreds monthly.
You'll pay a one-time funding fee between 1.4% and 3.6% depending on your down payment and service history. First-time VA buyers with zero down pay 2.3%, but disabled veterans get the fee waived entirely.
The biggest split is eligibility and upfront costs. VA loans require military service but eliminate down payments and monthly insurance. FHA is open to anyone but requires both down payment and permanent mortgage insurance.
On a $300,000 Dorris home, FHA needs $10,500 down plus $200-250 monthly for mortgage insurance. VA needs zero down but charges a $6,900 funding fee that gets rolled into the loan.
If you served in the military and qualify for VA benefits, use them. The zero down and no mortgage insurance make VA the clear winner for eligible borrowers in Dorris, even with the funding fee.
Choose FHA if you're not military-connected or if you're buying a property that won't pass VA's stricter inspection standards. FHA works for nearly any borrower willing to accept ongoing mortgage insurance costs.
Yes, both programs work in rural Siskiyou County. The property must meet basic safety standards, though VA appraisers enforce stricter requirements on well water and septic systems.
FHA officially accepts 580 credit scores. VA has no minimum score set by the government, but most lenders require 620-640 for approval.
Yes, veterans with service-connected disabilities get the fee waived completely. Surviving spouses receiving DIC benefits also qualify for the waiver.
Rates vary by borrower profile and market conditions. VA rates typically run 0.25-0.50% lower than FHA because of reduced lender risk from the government guarantee.
No, not if you put down less than 10%. FHA mortgage insurance stays for the entire loan term unless you refinance to conventional or VA.