HOME FINANCING · CA

Home Financing in Shasta County, California: A Plain-Language Guide for Solo Contractors and Small Investors

Buying or investing in a home in Shasta County takes preparation, but the right local partners make it much more manageable. This guide walks you through what home financing means, who qualifies, what documents you'll need, and which local lenders and programs actually serve Redding, Anderson, Shasta Lake City, and surrounding communities. Whether you're a solo contractor, a first-time buyer, or a small real-estate investor — and whether you have a Social Security Number or an ITIN — there are real options available to you right here in Shasta County.

§ 01 — What it is

What Is Home Financing?

Home financing is the process of borrowing money to purchase, refinance, or improve a residential property. The most common form is a mortgage — a long-term loan secured by the home itself. If you stop making payments, the lender can take the property, so it's important to borrow only what you can realistically repay. There are several types of home loans available in California: - **Conventional loans** are not backed by the government. They often require stronger credit and a down payment of at least 3–20%. - **FHA loans** are insured by the Federal Housing Administration and allow down payments as low as 3.5% with more flexible credit requirements. They are a common entry point for first-time buyers. - **USDA loans** are available for homes in eligible rural and suburban areas — parts of Shasta County qualify — and may require no down payment at all. - **VA loans** are for eligible veterans and active-duty service members, often with no down payment required. - **ITIN loans** are offered by select lenders for borrowers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number. These are especially important for mixed-status families and immigrant entrepreneurs in our region. - **Hard money loans** are short-term loans used by investors, typically for fix-and-flip projects. They carry higher interest rates and fees and should only be used by experienced investors with a clear exit plan. No matter which type fits your situation, the basics are the same: a lender reviews your income, credit, and assets, then decides how much to lend you and at what interest rate.

§ 02 — Who qualifies

Who Qualifies? Local Considerations for Shasta County

Shasta County's economy is shaped by healthcare (Dignity Health, Shasta Regional Medical Center), government employment, retail trade, construction, agriculture, and a growing number of self-employed tradespeople and small business owners. Qualifying for a home loan here means showing a lender that your income is stable enough to cover monthly payments — even if that income doesn't come from a traditional W-2 paycheck. **For solo contractors and self-employed borrowers:** Lenders typically want to see two years of self-employment history. Your taxable income on your federal returns is what counts — not gross receipts. If you write off a lot of business expenses, your qualifying income may be lower than you expect. A good local loan officer can help you plan 12–24 months ahead of a purchase. **For ITIN borrowers:** You do not need a Social Security Number to buy a home in California. Several lenders and credit unions in and around Shasta County will accept an ITIN, along with alternative credit documentation such as rent payment history, utility bills, and remittance records. See the local lenders section below. **Income limits for assistance programs:** Shasta County's median household income is lower than the California state average, which actually works in your favor for income-based programs. Many state and local down-payment assistance programs set their eligibility thresholds based on Area Median Income (AMI). In Shasta County, lower AMI thresholds mean more households qualify. **Credit considerations:** Most conventional loans want a score of 620 or higher. FHA loans can go as low as 580 (with 3.5% down) or even 500 (with 10% down). ITIN lenders may use alternative credit scoring entirely. If your credit needs work, local credit unions and CDFIs often provide free financial coaching before you ever apply.

§ 03 — What you need

Documents You Will Typically Need

Getting your paperwork together before you apply saves time and reduces stress. While every lender is slightly different, here is a standard checklist for Shasta County home buyers: **Identity and residency:** - Government-issued photo ID (driver's license, passport, or consular ID) - ITIN letter (if no Social Security Number) or SSN - Proof of address (recent utility bill or bank statement) **Income — W-2 employees:** - Last two years of W-2 forms - Last 30 days of pay stubs - Last two years of federal tax returns (signed) **Income — self-employed / contractors:** - Last two years of personal AND business federal tax returns - Year-to-date profit and loss statement (often prepared by your accountant) - Business license or contractor's license (CSLB license if applicable) - 12–24 months of business bank statements **Assets:** - Last two to three months of bank statements (all pages) - Retirement or investment account statements - Documentation of any gift funds (gift letter from the donor) **Property:** - Signed purchase agreement (once you are under contract) - Homeowner's insurance quote **For ITIN borrowers, additional items may include:** - 12–24 months of bank statements in lieu of tax returns (some lenders) - Rental payment history (canceled checks or landlord letter) - Utility payment history Organize these in a folder — digital or paper — before you speak with a lender. It shows you are serious and speeds up the process significantly.

§ 04 — Where to start in Shasta County

Local Lenders, CDFIs, Credit Unions, and ITIN-Friendly Options Serving Shasta County

This is the most important section of the guide. Federal programs like FHA or USDA are tools, but it's local and regional institutions that actually process your loan, hold your hand through the paperwork, and understand the Shasta County market. **Local and Regional Credit Unions:** - **Tri Counties Bank** — headquartered in Chico with a strong Redding presence; offers conventional, FHA, and construction loans. Known for working with local tradespeople and small business owners. - **Safe Credit Union** — serves Northern California broadly with branches accessible to Shasta County residents; offers home loans, HELOCs, and financial coaching. - **Golden Valley Bank** — community bank based in Chico, serving Shasta County; focuses on relationship banking and works with self-employed borrowers. - **Plumas Bank** — regional community bank with a Northern California footprint; often more flexible than mega-banks for rural and semi-rural purchases. **ITIN-Friendly Lenders:** - **Self-Help Federal Credit Union** — one of the most respected ITIN mortgage lenders in California. They serve low-to-moderate income families and immigrant communities, accept ITINs, and offer financial coaching. They operate statewide and can serve Shasta County borrowers remotely or through partner organizations. - **Beneficial State Bank** — a mission-driven bank serving California; offers ITIN loan products and prioritizes underserved communities. - **UnidosUS-affiliated housing counselors** — while not a lender, they can connect ITIN borrowers to vetted lenders and walk you through the process in Spanish if needed. **CDFIs (Community Development Financial Institutions):** - **Northern Valley Indian Health / Tribal lending connections** — for Native American borrowers in Shasta County, Section 184 Indian Home Loan Guarantee Program loans may be available through HUD-approved lenders; contact local tribal housing offices for referrals. - **Rural Community Assistance Corporation (RCAC)** — a Sacramento-based CDFI that serves rural Northern California, including Shasta County. They offer homebuyer education, down payment assistance navigation, and loan programs for lower-income rural buyers. - **NeighborWorks Northern California (formerly Shasta-Trinity area partners)** — provides homebuyer education, HUD-approved housing counseling, and connections to down payment assistance programs. Highly recommended as a first step before applying anywhere. **SBA District Office (for investor or mixed-use properties):** - The **Sacramento SBA District Office** covers Shasta County. While SBA loans are primarily for business purposes, SBA 504 loans can finance owner-occupied commercial real estate, which may apply to small investors purchasing mixed-use buildings. Call 916-930-3700 or visit sba.gov/offices/district/ca/sacramento. **Down Payment Assistance — California Programs accessible in Shasta County:** - **CalHFA (California Housing Finance Agency) MyHome Assistance Program** — offers a small second loan to cover down payment and closing costs for first-time buyers. Income and purchase price limits apply; Shasta County limits are favorable. Work with a CalHFA-approved lender locally. - **CalHFA Dream For All Shared Appreciation Loan** — a newer program offering up to 20% of the purchase price as a down payment loan, repaid when you sell or refinance. Availability is limited; check CalHFA.ca.gov for open enrollment windows. - **Shasta County HOME Program** — the county periodically administers HOME Investment Partnerships Act funds for first-time buyer assistance. Contact the Shasta County Community Development Department at (530) 225-5532 for current availability. - **City of Redding Housing Programs** — the City of Redding has historically offered down payment assistance for buyers purchasing within city limits. Contact Redding's Development Services Department for current program status.

§ 05 — What to avoid

California State-Specific Rules and Considerations

California has some of the strongest consumer protection laws for homebuyers in the country. Here's what matters most in Shasta County: **California Homeowner Bill of Rights (HBOR):** Protects homeowners from dual-tracking (when a lender simultaneously processes a foreclosure while reviewing a loan modification request). If you ever fall behind on payments, you have legal rights here that do not exist in every state. **Proposition 19 (2021):** Changed how property taxes transfer when a home is inherited or when a homeowner over 55 buys a replacement property. If you are a small investor or planning to pass property to family, consult a California real estate attorney or CPA. **California's ITIN Non-Discrimination:** California law prohibits lenders from denying a loan solely because the borrower uses an ITIN rather than a Social Security Number. If a lender refuses to work with you for this reason alone, that may be a violation of California law. You can file a complaint with the California Department of Financial Protection and Innovation (DFPI) at dfpi.ca.gov. **Contractor Licensing:** If you are a solo contractor and your income comes from construction work, having an active CSLB (Contractors State License Board) license is helpful documentation for lenders. It validates your self-employment legitimately. **Transfer Taxes and Closing Costs:** California allows cities and counties to charge documentary transfer taxes. In Shasta County, the county rate is $1.10 per $1,000 of property value. Redding may charge an additional city transfer tax. Budget for total closing costs of 2–5% of the purchase price. **Wildfire Risk and Insurance:** This is critical in Shasta County. After the Carr Fire (2018) and other regional fires, insurance availability has tightened dramatically. Some areas of Shasta County are now in California FAIR Plan territory — the state's insurer of last resort. Before you make an offer on a property, confirm that standard homeowner's insurance is available. A lender will require proof of insurance before closing. The California FAIR Plan (cfpnet.com) is a legal option but is more expensive and less comprehensive than standard policies.

§ 06 — Ask a question

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