Buying your first home in Paradise can feel out of reach when you think about down payment and rising costs. The good news is you have strong entry-level financing options that are designed to help you get the keys sooner. Two standouts are USDA’s Guaranteed Loan and CalHFA’s first mortgage and assistance programs. In this guide, you’ll see how each works in Butte County, what to watch for in Paradise, and the exact steps to move forward with confidence. Let’s dive in.
USDA loan basics
USDA’s Single-Family Housing Guaranteed Loan helps eligible buyers finance homes in qualifying rural areas through approved lenders. It is popular with Paradise buyers because it can reduce upfront cash needs.
- 100% financing is allowed for eligible buyers and properties.
- Primary residence only and fixed-rate loans through participating lenders.
- Household income limits apply and vary by county and household size.
- Property location must be eligible under USDA’s map, which can vary by street.
- A financed upfront guarantee fee and a monthly annual fee replace conventional PMI.
Learn more on the official program page for the USDA Single-Family Housing Guaranteed Loan Program. You can confirm addresses using the USDA Property Eligibility tool before you get too far into the process.
- Program overview: USDA Guaranteed Loan Program
- Address lookup: USDA Property Eligibility tool
CalHFA programs at a glance
CalHFA is California’s housing finance agency. It partners with approved lenders to offer first mortgages and down payment or closing cost help to low and moderate income buyers. Programs are available statewide, including Butte County.
- First mortgages: CalHFA Conventional and CalHFA FHA through participating lenders.
- Assistance: MyHome Assistance Program and other subordinate loans may help cover down payment and closing costs.
- Income limits, purchase price caps, and first-time buyer definitions vary by product and county.
- Some programs require homebuyer education and must be done with a CalHFA participating lender.
Explore current options and limits on CalHFA’s site:
- Overview of programs: CalHFA homebuyer programs
- Down payment help: MyHome Assistance Program
- County limits: CalHFA income limits
How these programs work in Paradise
Paradise sits in a unique lending environment because of geography and wildfire history. Understanding local factors will help you choose the right path.
- USDA location eligibility is address specific. Some Paradise and nearby Butte County areas qualify, while more urbanized pockets may not. Always confirm the exact property address through the USDA map before you count on USDA financing.
- Wildfire insurance can affect approval. Lenders require acceptable hazard or wildfire coverage. In high fire-risk zones, some insurers limit coverage or set higher premiums, which can change your monthly payment and debt-to-income ratio. Review guidance and options via the California Department of Insurance wildfire resources, and obtain quotes early.
- Rebuild and permitting matter. Many homes in Paradise were rebuilt after the 2018 Camp Fire. Lenders and appraisers will look for safe, habitable condition, proper permits, and a certificate of occupancy. If repairs are needed, talk to your lender about whether repairs must be completed before closing or if a rehab loan could work.
- Utilities and land use can vary. Some parcels use wells or septic systems, and defensible space rules may apply. These items can impact valuation, insurability, and loan approval.
Eligibility checkpoints
Borrower basics
- Occupancy: You must live in the home as your primary residence.
- Income: USDA uses household income limits for Butte County. CalHFA uses program-specific limits and purchase price caps.
- Credit: USDA often works for mid-600s credit scores through many lenders. CalHFA FHA can be more flexible, while CalHFA Conventional usually requires higher scores. Lender overlays vary.
- Debt-to-income: Standard DTI rules apply. Strong credit, reserves, or a larger down payment can help.
Property requirements
- Location: USDA requires the address be USDA-eligible. CalHFA has no rural requirement.
- Condition: Homes must meet safety and habitability standards. Unresolved fire damage or major code issues typically must be repaired before closing.
- Types: Single-family homes are most common. Some condos and manufactured homes may qualify, depending on program rules and approvals.
- Appraisal: Appraisers will report condition and market factors. Any required repairs are usually completed before funding unless your loan allows repairs to be financed.
Cost components to compare
- Down payment: USDA allows 0% down when eligible. CalHFA usually needs a small down payment, but DPA can reduce or cover it.
- Mortgage insurance and fees: USDA uses a guarantee fee upfront and a monthly annual fee. CalHFA FHA uses FHA mortgage insurance, while CalHFA Conventional may require PMI with less than 20% down.
- Closing costs: Seller credits are allowed within program limits. CalHFA assistance may also help cover closing costs.
USDA vs CalHFA: quick comparison
Geography
- USDA: Requires an eligible rural address.
- CalHFA: Available statewide.
Down payment
- USDA: Often the best fit if you need 0% down.
- CalHFA: Pair a first mortgage with DPA to reduce cash to close.
Income and price limits
- USDA: Household-based income caps.
- CalHFA: Program-specific limits and purchase price caps for Butte County.
Insurance and property factors
- Both require acceptable hazard or wildfire coverage. Property condition must meet program standards.
When USDA fits best
- You want no down payment, your address is eligible, and household income is within limits.
When CalHFA fits best
- Your chosen home is not USDA-eligible, you need down payment help, or your income exceeds USDA limits.
Your step-by-step plan
Confirm address eligibility for USDA. Use the USDA Property Eligibility tool for any property you are considering.
Check current limits. Review USDA household income limits for Butte County and CalHFA’s program income and purchase price limits. Start at CalHFA income limits and the main CalHFA homebuyer programs page.
Talk to participating lenders. Speak with at least one USDA-approved lender and one CalHFA participating lender. Ask each for a preapproval and a fee worksheet so you can compare true monthly payments and cash to close.
Get wildfire insurance quotes early. In Paradise, insurance can change your budget. Confirm availability and premiums before you lock in a loan plan. The California Department of Insurance wildfire resources can help you understand options.
Order inspections and verify permits. Get a thorough home inspection and review permits and the certificate of occupancy if the home was rebuilt. Your agent can help you coordinate with local records.
Gather documents. Have your photo ID, two recent pay stubs, two years of W‑2s and federal tax returns, recent bank statements, and any gift letters or explanations for large deposits ready.
Compare total cost over time. Ask lenders for 5-, 10-, and 30-year comparisons for USDA vs CalHFA options, factoring in mortgage insurance or guarantee fees and insurance premiums.
Plan for repairs if needed. If the home needs work, ask about USDA repair options, FHA 203(k), or other rehab financing. These have extra steps but can solve condition issues.
Local tips for Paradise buyers
- Shop multiple insurers. Premiums vary widely in high fire-risk areas. A better quote can improve your approval odds and monthly payment.
- Confirm utilities early. Know if the property relies on septic or a well and whether any upgrades are required.
- Lean on local expertise. An agent experienced with Paradise’s rebuild landscape can help you navigate appraisals, permit history, and defensible space requirements.
Ready to compare your options?
You do not have to choose blindly. With address checks, early insurance quotes, and lender side-by-side estimates, you can see which program better fits your home and budget. If you want local guidance rooted in Paradise market knowledge and post-rebuild experience, connect with a trusted advisor who can coordinate lenders, inspections, and negotiations from start to finish.
Have questions or want a personalized game plan for your purchase in Paradise? Reach out to Unknown Company to start your homebuying plan today.
FAQs
Is a Paradise address eligible for a USDA loan?
- It depends on the exact address. Use the USDA Property Eligibility tool to confirm. Some Butte County areas qualify, while urbanized pockets may not.
Can I buy with no down payment in Paradise using USDA?
- Yes. USDA allows 100% financing for eligible borrowers and properties. You still need to qualify based on income, credit, DTI, and property standards.
How does CalHFA help with down payment and closing costs?
- CalHFA offers subordinate assistance like the MyHome Assistance Program that can reduce or cover your down payment and some closing costs, if you meet program rules.
Which is cheaper monthly, USDA or CalHFA?
- It varies by loan size, interest rate, and the cost of mortgage insurance or USDA fees. Get lender quotes for both options to compare total monthly and long-term costs.
Will wildfire risk stop my loan from being approved?
- Lenders require acceptable hazard or wildfire insurance. If coverage is limited or premiums are high, it can affect affordability. Always get insurance quotes early and verify property condition and permits.
Do I have to be a first-time buyer for these programs?
- USDA does not require first-time buyer status. CalHFA programs vary. Some require first-time buyer status, while others allow repeat buyers. Check the specific program rules.
