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in Weed, CA
Weed sits at the base of Mount Shasta where housing costs run lower than most California markets. That price advantage changes which loan type makes sense for your wallet.
FHA loans let you in with less cash down, but conventional financing often costs less monthly. The right choice depends on what you're bringing to closing and how long you plan to stay.
Conventional loans require 3-20% down and a minimum 620 credit score. You avoid mortgage insurance entirely once you put down 20%, which saves you hundreds monthly.
These loans cap at $806,500 in Siskiyou County for 2025. You'll pay less in total fees than FHA, and you can cancel PMI once you hit 20% equity through payments or appreciation.
Conventional works best when you have solid credit and can manage a larger down payment. The lower ongoing costs mean you keep more money every month after closing.
FHA loans accept borrowers at 580 credit with just 3.5% down. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums that stick around for the loan's life.
Credit standards flex more than conventional. Recent bankruptcies or foreclosures don't automatically disqualify you if enough time has passed and you've rebuilt payment history.
The trade-off is clear: easier entry requirements in exchange for permanent mortgage insurance. That insurance typically adds $150-300 monthly to your payment depending on loan size.
Down payment separates these loans first. FHA needs just 3.5% versus 5-20% for conventional in most cases, though both allow 3% programs for qualified first-time buyers.
Credit score matters more with conventional. A 620 borrower qualifies for FHA easily but faces steep rate markups on conventional. Above 740 credit, conventional usually wins on total cost.
Mortgage insurance creates the biggest monthly gap. FHA charges it forever while conventional drops PMI at 20% equity. On a $300,000 Weed home, that's $2,400+ yearly once you'd qualify to drop it.
Choose FHA when your credit sits below 680 or you're scraping together every dollar for the down payment. The easier approval requirements outweigh the higher lifetime cost for many first-time buyers.
Pick conventional if your credit exceeds 700 and you can swing 5-10% down. You'll pay less monthly and have the option to drop insurance later, which matters more in an affordable market like Weed.
Run the numbers both ways before deciding. A borrower with 660 credit and 5% down might save $200 monthly with FHA today but pay $15,000 extra over five years in mortgage insurance.
Yes, once you build 20% equity and your credit improves. Most borrowers refinance within 3-5 years to eliminate FHA's permanent insurance.
Both take 30-45 days typically. FHA appraisals sometimes add a few days because inspectors must flag certain property conditions that conventional loans ignore.
Some do because FHA appraisals scrutinize property condition more strictly. A strong offer price and quick close matter more than loan type in most cases.
740+ unlocks top-tier pricing. Every 20-point drop below that adds roughly 0.25-0.50% to your rate through lender adjustments.
Standard FHA requires the home to be move-in ready. FHA 203k renovation loans exist but add complexity most buyers avoid.