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in Davis, CA
Davis sits in Yolo County where the median household income is $88,818. Both FHA and VA loans let buyers with modest down payments enter the market here. The choice between them hinges on eligibility, insurance costs, and how much cash you have at closing.
FHA loans are open to any qualified buyer. VA loans require military service or eligibility. Both programs cap out well below the 2026 conforming limit of $832,750, so neither hits a ceiling in Davis.
FHA loans let you put as little as 3.5% down in Davis. You'll pay mortgage insurance for the life of the loan if your down payment stays below 10%. The 2026 FHA loan limit for Yolo County is $764,750, which covers most Davis purchases.
The appeal of FHA is speed and accessibility. You don't need perfect credit or a huge down payment. Lenders approve FHA loans consistently because the program is well-established.
VA loans offer zero down to eligible veterans and service members. Instead of mortgage insurance, you pay a one-time funding fee rolled into the loan. The 2026 VA loan limit in Yolo County is $832,750, giving you more headroom than FHA.
VA's real strength is the no-down-payment option. If you've served, you can buy a Davis home without scraping together a down payment. The funding fee is a one-time cost, not an ongoing monthly burden like FHA mortgage insurance.
Down payment is the biggest split. FHA requires at least 3.5% down; VA allows zero. For a typical Davis purchase, that's a meaningful gap in cash needed at closing. FHA buyers carry mortgage insurance indefinitely if they put down less than 10%.
VA's funding fee is a one-time cost, not monthly. FHA's mortgage insurance is a monthly payment for the life of the loan. On a modest down payment, that monthly MI adds up.
Pick FHA if you're not military-eligible but have at least 3.5% saved. You'll qualify faster and can close in 30 days. FHA works well for first-time buyers in Davis earning near the county median.
Pick VA if you're a veteran or active-duty service member. Zero down means you keep your savings intact. The funding fee is steep upfront, but it's a one-time hit, not a monthly drain. VA is the clear winner if you qualify—the math favors you every time.
Yes. Veterans, National Guard members, and reservists with honorable discharge qualify. You'll need a Certificate of Eligibility from the VA. Active duty, retired, and separated service all count.
Yes — mortgage insurance is required on all FHA loans. If you put down less than 10%, it stays for the life of the loan. At 10% or more down, it drops after 11 years.
The funding fee is typically 2.3% of the loan amount for first-time VA buyers. It rolls into your loan, so you don't pay it upfront. Only disabled veterans are exempt.
VA has a higher county limit at $832,750 versus FHA's $764,750. If you're buying above $764,750, VA is your only option between these two.
FHA requires 3.5% minimum. VA requires zero down if you're eligible. Both accept lower credit scores than conventional loans.