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in Weed, CA
Weed sits at 3,500 feet in Siskiyou County, where affordable housing meets rural living. Both FHA and VA loans work well here, but they serve different buyers with different strengths.
FHA loans help first-time buyers with minimal savings. VA loans reward military service with zero down and no mortgage insurance. Your eligibility determines which path makes sense.
FHA loans require just 3.5% down with a 580 credit score. You pay mortgage insurance for the life of the loan if you put down less than 10%. Loan limits in Siskiyou County reach $498,257 for 2024.
These loans accept higher debt ratios than conventional mortgages. Sellers can contribute up to 6% toward closing costs. FHA works for single-family homes, condos, and manufactured homes on permanent foundations.
VA loans require zero down payment for eligible veterans and active service members. No monthly mortgage insurance exists, which saves $150-300 monthly on typical Weed home prices. You pay a one-time funding fee instead.
Credit requirements stay flexible, often accepting 580-620 scores. The VA guarantees 25% of the loan, so lenders take less risk. Properties must meet minimum standards, but the inspection protects buyers from costly repairs.
Down payment splits these programs cleanly. FHA needs 3.5% saved, while VA needs nothing upfront. On a $300,000 Weed home, that's $10,500 versus zero out of pocket.
Monthly costs favor VA loans heavily. FHA charges 0.55% annual mortgage insurance—$138 monthly on $300,000. VA charges nothing monthly but collects a 2.15% funding fee at closing for first-time users. That fee gets rolled into the loan amount.
Choose VA if you qualify through military service. The zero down and no mortgage insurance beat FHA in almost every scenario. You'll save thousands annually and keep more cash for moving expenses or home repairs.
Choose FHA if you lack military eligibility. It remains the best government option for buyers with limited savings and lower credit scores. The 3.5% down requirement stays manageable, and flexible underwriting helps self-employed borrowers in Weed's tourism and forestry economy.
Yes, both programs work throughout Siskiyou County. Properties must meet basic safety standards, but rural location doesn't disqualify you from either loan type.
VA loans cost $150-300 less monthly due to zero mortgage insurance. FHA charges 0.55% annually, which adds up quickly over 30 years.
No, both accept 580 credit scores regularly. VA lenders sometimes go lower with compensating factors like steady income or cash reserves.
Yes. FHA allows 6% seller concessions, VA allows 4%. In Weed's market, sellers often contribute to help deals close.
Use VA. The zero down and no mortgage insurance save substantially more than FHA's 3.5% down requirement and permanent insurance costs.