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in Yreka, CA
Yreka buyers typically choose between conventional financing and VA loans if they qualify. Both work well here, but they have different costs and requirements.
Your military service status matters most. VA loans offer zero down for veterans while conventional loans require at least 3% down from anyone.
Conventional loans are backed by Fannie Mae or Freddie Mac, not a government agency. You need at least 620 credit and documented income to qualify.
Put down less than 20% and you'll pay PMI until you hit 20% equity. Monthly insurance costs range from 0.3% to 1.5% of your loan amount annually.
VA loans guarantee repayment to lenders if you default. This lets veterans and active-duty service members buy with zero down and no monthly mortgage insurance.
You pay a one-time funding fee of 2.15% to 3.3% of the loan amount. This can roll into the loan so you don't need cash upfront.
Down payment separates these loans most. VA requires nothing down while conventional needs 3% minimum, which is about $9,000 on a $300,000 Yreka home.
Monthly costs differ too. Conventional loans under 20% down carry PMI that adds $100-$300 monthly. VA loans skip this but charge a funding fee at closing instead.
Use your VA benefit if you have it. Zero down and no PMI save thousands compared to conventional financing, even with the funding fee.
Go conventional if you're not VA-eligible or buying a property that doesn't meet VA standards. Conventional also works better for investment properties since VA requires owner occupancy.
Yes, VA loans work throughout Siskiyou County including rural areas. The property just needs to meet basic VA appraisal standards for safety and habitability.
Expect $125-$250 monthly on a $300,000 loan with 5% down. Your exact rate depends on credit score and down payment amount.
Not usually. Both take 30-45 days in Yreka. VA appraisals can add a few days but experienced lenders handle them smoothly.
Yes, if you're receiving VA disability compensation or are a surviving spouse. Otherwise the fee applies but can be financed into the loan.
VA loans typically run 0.25-0.50% lower than conventional rates. The government guarantee reduces lender risk, which translates to better pricing for veterans.