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in Etna, CA
Buying in Etna means choosing between conventional and FHA financing. Both work for rural Siskiyou County properties, but they favor different borrower profiles.
Conventional loans reward strong credit with lower costs. FHA loans open doors for buyers with smaller down payments or credit rebuilding stories.
Conventional loans require no government backing. You need 620+ credit and typically 3-5% down, though 20% eliminates private mortgage insurance entirely.
These loans offer the lowest rates for borrowers with 740+ credit. PMI drops off automatically at 78% loan-to-value, unlike FHA's lifetime mortgage insurance on some loans.
Debt-to-income limits stretch to 50% with compensating factors. Conventional loans handle higher purchase prices better than FHA, which matters less in Etna's affordable market.
FHA loans require just 3.5% down with 580+ credit. Scores between 500-579 qualify with 10% down, opening homeownership to credit-challenged buyers.
You'll pay 1.75% upfront mortgage insurance plus annual premiums. On loans over 90% LTV, that annual premium stays for the loan's life unless you refinance out.
FHA accepts recent bankruptcy or foreclosure with waiting periods as short as 1-2 years. Gift funds can cover your entire down payment, which conventional loans restrict.
Credit score creates the biggest divide. Conventional needs 620 minimum and rewards 740+. FHA accepts 580 and treats most qualified borrowers the same on pricing.
Mortgage insurance costs favor conventional above 20% down and FHA below it. With 5% down, FHA often costs less monthly despite higher insurance.
Property standards differ too. FHA inspections flag safety issues conventional appraisals ignore. Rural Etna properties sometimes need work that FHA won't approve until fixed.
Choose conventional if you have 680+ credit and 10%+ down payment. You'll pay less in insurance and get the lowest available rates.
Pick FHA with under 680 credit or minimal savings. The 3.5% down requirement and flexible underwriting offset the higher insurance costs.
For Etna's older homes, conventional appraisals create less friction. FHA requires repairs on peeling paint, safety hazards, and well/septic issues that conventional lenders often waive.
Both work for rural Siskiyou County homes. FHA requires properties meet stricter safety standards, which sometimes affects older mountain properties.
FHA typically wins at 5% down despite higher insurance. Conventional pulls ahead when you hit 20% down and cancel PMI.
Conventional requires 620 minimum. FHA accepts 580 with 3.5% down or 500-579 with 10% down.
Only if you put 10%+ down or refinance. Loans over 90% LTV carry annual insurance for the full loan term.
FHA allows 100% gift funds. Conventional requires you contribute some of your own funds depending on down payment size.
Both take similar time. FHA appraisals sometimes delay closing if the property needs repairs before approval.