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in Belvedere, CA
Belvedere buyers face a choice between conventional and FHA financing. Most properties here exceed FHA loan limits, making conventional the default for high-value homes.
If you're buying a rare under-$1.2M property or condo, FHA might work. Otherwise, conventional is your path forward in this upscale Marin market.
Conventional loans aren't government-backed. You work directly with private lenders who set their own approval standards.
You can put down 3% as a first-time buyer or 5% otherwise. Drop private mortgage insurance once you hit 20% equity. Rates vary by borrower profile and market conditions.
Credit score matters more here than with FHA. Most lenders want 620 minimum, but competitive rates start around 700-740 in Belvedere's price range.
FHA loans come with government insurance. The Federal Housing Administration backs your loan if you default, so lenders accept higher risk.
You need just 3.5% down with 580 credit. Below that, 10% down is required. FHA mortgage insurance stays for the loan's life on most purchases.
Marin County's FHA limit is around $1,149,825 for single-family homes. That ceiling cuts out most Belvedere inventory right away.
Down payment looks similar at first—both allow under 5%. The real split is mortgage insurance. FHA charges upfront and monthly premiums that never drop off. Conventional PMI disappears at 20% equity.
Credit standards diverge sharply. FHA approves 580 scores; conventional wants 620 minimum. But FHA's loan limits kill most Belvedere deals before credit even matters.
Property standards differ too. FHA inspectors flag cosmetic issues conventional appraisers ignore. That 1960s fixer near the lagoon? FHA might require repairs before closing.
Choose FHA if you're buying under the loan limit with sub-700 credit. You'll pay more long-term in insurance, but you'll get approved when conventional won't work.
Go conventional for anything near or above $1.2M. You'll also want conventional if you have 720+ credit and plan to stay long enough to benefit from PMI cancellation.
Most Belvedere buyers end up conventional by default. The island's median values push you into jumbo territory where FHA can't follow.
Only if it's priced under $1,149,825. Most Belvedere waterfront exceeds FHA limits, forcing conventional or jumbo financing.
Conventional typically wins with good credit. FHA's lifetime mortgage insurance costs more than conventional PMI that drops off.
Yes, because FHA appraisals are stricter. Sellers worry about required repairs killing deals on older properties.
Minimum 620, but 740+ gets you the best rates. Rates vary by borrower profile and market conditions.
Yes, through refinancing once you hit 20% equity. That eliminates FHA's permanent mortgage insurance.