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in Yreka, CA
Both FHA and VA loans offer low down payments and flexible credit standards. The difference comes down to eligibility—VA loans beat FHA on terms, but only veterans and active military qualify.
In Yreka's affordable market, these government-backed programs open doors for buyers who don't have 20% down. We compare the real costs and requirements so you know which path makes sense.
FHA loans require just 3.5% down with a 580 credit score. You'll pay upfront mortgage insurance of 1.75% plus monthly premiums that last the life of most loans.
Lenders allow debt ratios up to 50% in many cases. Sellers can contribute 6% toward closing costs, which helps in Siskiyou County where cash reserves matter.
VA loans require zero down and charge no monthly mortgage insurance. You pay a one-time funding fee—typically 2.3% for first use—that can roll into the loan amount.
Credit standards flex lower than FHA in practice. Lenders approve 620 scores routinely, and some go to 580 with strong compensating factors like cash reserves.
VA wins on cost—no down payment and no monthly insurance saves $150-250 monthly on typical Yreka home prices. FHA requires both 3.5% down and permanent monthly premiums.
Eligibility separates them completely. VA demands military service with a Certificate of Eligibility. FHA opens to anyone who meets income and credit standards.
Use VA if you qualify—it's not close. Zero down, no monthly insurance, and competitive rates beat FHA across the board unless you've already used your entitlement.
FHA makes sense for non-veterans or buyers purchasing non-warrantable properties VA won't touch. It's also the backup when VA appraisals kill deals over minor property issues in older Yreka neighborhoods.
Both require the home as your primary residence. VA scrutinizes property condition more—wells, septic, and roof condition matter more than with FHA in rural Siskiyou County.
VA payments run $150-250 lower monthly by eliminating mortgage insurance. The savings compounds over 30 years to six figures on typical loan amounts.
Sellers fear neither with proper positioning. Both appraise conservatively, but strong pre-approval and quick closing timelines overcome bias from listing agents.
Yes—refinance to VA once you have eligibility. You'll drop mortgage insurance and potentially lower your rate, though closing costs apply to the new loan.
Timeline depends on your loan officer, not the program. Both process in 21-30 days with responsive borrowers and clear title on the property.