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in Etna, CA
Both FHA and VA loans make homeownership accessible in Etna with low down payments and flexible credit. The VA loan eliminates the down payment entirely for eligible veterans, while FHA serves anyone who qualifies.
These government-backed programs work well in rural Siskiyou County markets where conventional financing can be stricter. Your military service status typically decides which path you take, but understanding both helps you maximize your buying power.
FHA loans require 3.5% down with a 580 credit score, or 10% down if your score sits between 500-579. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums that last the loan's life on most purchases.
These loans cap at $498,257 in Siskiyou County for single-family homes. The property must meet FHA's minimum standards, which means some fixer-uppers in rural Etna won't qualify until repairs are complete.
VA loans require zero down payment for eligible veterans, active-duty service members, and surviving spouses. You'll pay a funding fee between 1.4% and 3.6% unless you're exempt due to disability, but there's no ongoing mortgage insurance.
The VA doesn't set a maximum loan amount, though lenders impose practical limits based on your income. Properties must meet VA's minimum property requirements, and you can use this benefit multiple times throughout your life.
The biggest split is eligibility: VA loans require military service connection while FHA accepts anyone. VA eliminates monthly mortgage insurance entirely, while FHA charges it for the loan's life in most cases.
Down payment separates them clearly. VA offers zero down for all qualified borrowers, while FHA needs 3.5% minimum. Both charge upfront fees, but the VA funding fee disappears completely for disabled veterans.
If you're eligible for VA, use it. The zero down payment and no monthly insurance save substantial money over time. Veterans choosing FHA instead usually do so because the property doesn't meet VA standards or they're buying a multi-unit building beyond VA's scope.
FHA becomes your path if you lack military service connection. It's the most accessible government loan for first-time buyers in rural areas like Etna where conventional underwriting can be rigid about property types and borrower profiles.
Yes, VA loans work throughout Siskiyou County including rural areas. The property must meet VA's minimum standards and have safe well/septic systems if off municipal services.
VA loans typically cost less monthly due to zero mortgage insurance. FHA's insurance adds $100-200 monthly on a $300,000 loan depending on your down payment.
Yes. FHA allows up to 6% seller concessions, while VA allows up to 4%. Both can cover your closing costs if the seller agrees.
Both programs have minimum property standards that eliminate most fixer-uppers. FHA 203(k) and VA renovation loans exist but add complexity and requirements.
Both take 30-45 days typically. VA appraisals can take longer in rural areas due to fewer certified VA appraisers, though this varies by property location.