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Tehama County voters are deciding on school bond and sales tax measures in June 2026, signaling investment in local infrastructure. At 5.875%, FHA rates here let buyers close on a $777,202 home with just 3.5% down.
A $750,000 FHA loan at current rates runs $4,437 monthly for principal and interest alone. That payment fits comfortably within the county's median household income of $61,834 annually.
5.875%
FHA Interest Rate
$4,437
Monthly P&I Payment
580
Minimum FICO Score
3.5%
Down Payment Minimum
$541,287
2026 FHA Limit
FHA Loans in Tehama
FHA requires a minimum 580 FICO score, though 740+ gets better pricing and terms. Down payments start at 3.5% of the purchase price, with mortgage insurance (MIP) covering the lender's risk.
The county's median household income of $61,834 supports purchases in the $300,000 to $400,000 range without stretching debt ratios. Buyers with stronger income can go higher, especially with solid credit and reserves.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in Tehama.
Tehama County voters are deciding on school bond and sales tax measures in June 2026, signaling investment in local infrastructure. At 5.875%, FHA rates here let buyers close on a $777,202 home with just 3.5% down.
A $750,000 FHA loan at current rates runs $4,437 monthly for principal and interest alone. That payment fits comfortably within the county's median household income of $61,834 annually.
FHA requires a minimum 580 FICO score, though 740+ gets better pricing and terms. Down payments start at 3.5% of the purchase price, with mortgage insurance (MIP) covering the lender's risk.
FHA loans move through California lenders with consistent timelines because the program is federally insured. Most lenders price FHA and conventional directly against each other, with FHA typically running 0.25% to 0.5% higher in rate.
Brokers can shop FHA across multiple lenders to find the best execution. Underwriting takes 15 to 21 days once documents are submitted, with appraisals driving most delays.
FHA makes sense in Tehama when a buyer has solid income but limited savings. At 3.5% down, FHA opens the door where conventional's 5% to 10% minimum would require significantly more cash at closing.
Above $541,287, FHA hits its 2026 limit for Tehama County. Jumbo loans take over there, but FHA remains the path for first-time buyers and those rebuilding credit in the sub-limit range.
Conventional loans at this price require 5% to 10% down and skip mortgage insurance only at 20% down. FHA's 3.5% minimum means closing with more cash in hand, though MIP runs for the life of the loan.
The rate trade-off favors conventional above $400,000 if you can put 10% down. Below that, FHA's lower down payment often outweighs the insurance cost over a 30-year hold.
Red Bluff voters approved Measure S in June 2026, renewing a 1% sales tax for road maintenance over 12 years. That kind of infrastructure commitment signals stability for long-term homeowners in the Tehama area.
Schools and local services depend on voter-approved funding. Buyers planning to stay put benefit from these investments in roads, schools, and community services.
FHA lending in California remains steady because the program serves first-time buyers and those with credit challenges. Lenders compete actively on FHA rates, making broker shopping worthwhile.
Tehama County's smaller population means fewer local loan officers, but statewide lenders serve the area reliably. Most FHA closings happen within 30 to 45 days.
At 5.875% with 3.5% down, the principal and interest payment is $4,437 per month. Add property taxes, insurance, and MIP — typically another $1,200 to $1,500 — for your total housing cost.
No. FHA requires only 3.5% down. Mortgage insurance (MIP) applies for the life of the loan if you put down less than 10%. With 10% or more down, MIP cancels after 11 years.
Yes. FHA's minimum is 580 FICO. At 650, you qualify, but rates improve significantly at 740+. A score of 650 to 680 typically costs 0.25% to 0.5% more in rate.
No. The 2026 FHA limit in Tehama County is $541,287. A $750,000 purchase exceeds that cap and would require a jumbo or conventional loan instead.
Typically 15 to 21 days once you submit full documentation. The appraisal is often the longest step. Most closings complete in 30 to 45 days from application.