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in Windsor, CA
Windsor's blend of newer developments and established neighborhoods attracts both first-time buyers and military families. Both FHA and VA loans offer lower barriers to entry than conventional financing, but they serve different borrower profiles.
If you're military-affiliated, VA loans almost always beat FHA on cost and terms. For civilian buyers with limited savings, FHA remains the strongest path to homeownership in Sonoma County.
FHA loans require just 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums that last the life of the loan on most purchases.
These loans cap your debt-to-income ratio at 50% in many cases, giving breathing room for car payments or student debt. FHA works for single-family homes, condos in approved buildings, and multi-units up to fourplexes.
VA loans require zero down payment and no monthly mortgage insurance. You'll pay a one-time funding fee that ranges from 1.4% to 3.6% depending on down payment and military category, but many disabled veterans get this waived entirely.
Credit score minimums vary by lender but typically start around 580-620. VA allows higher debt ratios than most programs and doesn't cap your loan amount in Sonoma County, though your income must support the payment.
Down payment separates these programs first: VA requires nothing, FHA wants 3.5%. Monthly costs diverge even more—VA has no mortgage insurance while FHA charges 0.55% to 0.85% annually on your full loan amount.
Eligibility is the real divider. VA requires military service, active duty, or qualifying spouse status with a Certificate of Eligibility. FHA just needs income verification and credit history—no service requirement.
If you qualify for VA, use it. The savings from zero down and no monthly insurance add up to hundreds per month on a typical Windsor home. The only reason to choose FHA over VA is if the property doesn't meet VA appraisal standards.
For non-military buyers, FHA is your best low-down-payment option. Yes, the mortgage insurance stings, but 3.5% down beats saving 20% for conventional financing. Plan to refinance out of FHA once you hit 20% equity to drop that insurance.
Yes, but the condo complex must be approved by VA or FHA. Many Windsor complexes are pre-approved, but your lender needs to verify before you make an offer.
VA typically costs less overall despite the funding fee. FHA's upfront mortgage insurance premium and higher ongoing costs usually exceed VA's one-time funding fee.
FHA caps seller concessions at 6% of the purchase price. VA allows up to 4% for closing costs but permits the seller to pay all typical buyer fees.
Both programs require homes to meet safety and habitability standards. Major repairs often disqualify properties unless you use FHA 203(k) or VA renovation loan options.
FHA allows up to four units with owner-occupancy. VA also permits fourplexes but calculates income from rental units more conservatively than FHA does.