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in Corte Madera, CA
Corte Madera sits in one of California's priciest counties. The loan you pick will determine your rate, your monthly payment, and your costs at closing.
These two loan types look similar on the surface. The differences in credit requirements, mortgage insurance, and loan limits make one clearly better depending on your situation.
Conventional loans are not backed by the government. That means stricter credit standards — lenders typically want a 620 minimum — but also more pricing flexibility.
Put 20% down and you skip mortgage insurance entirely. That alone can save hundreds per month on a Corte Madera-priced property.
FHA loans are insured by the federal government. Lenders accept credit scores as low as 580 with just 3.5% down — 500 with 10% down.
The catch is mortgage insurance. FHA charges both an upfront premium and an annual premium that runs for the life of the loan in most cases.
Local decision guide
Use this comparison to weigh Conventional Loans and FHA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Corte Madera.
Corte Madera sits in one of California's priciest counties. The loan you pick will determine your rate, your monthly payment, and your costs at closing.
These two loan types look similar on the surface. The differences in credit requirements, mortgage insurance, and loan limits make one clearly better depending on your situation.
Conventional loans are not backed by the government. That means stricter credit standards — lenders typically want a 620 minimum — but also more pricing flexibility.
FHA mortgage insurance never goes away on most loans. Conventional PMI drops off once you hit 20% equity. In a high-value market like Corte Madera, that difference adds up fast.
HousingWire flagged the 30-year fixed hitting 6.57% with application volume dropping sharply. At that rate level, avoiding FHA's added insurance costs matters even more for Marin County buyers.
Strong credit and 10–20% saved? Conventional is almost always the better call. You get better pricing and you can ditch mortgage insurance.
Credit below 640 or limited cash reserves? FHA gets you in the door. Just plan your exit — refinancing into conventional once your equity builds can save real money.
Conventional typically requires 620+. FHA allows 580 with 3.5% down, or 500 with 10% down.
Not easily. Most FHA loans carry mortgage insurance for the life of the loan. You'd need to refinance into conventional.
FHA allows 3.5% down at 580 credit. Conventional starts at 3% but requires stronger credit to qualify.
Yes, FHA loan limits apply. Marin is a high-cost county, so limits are higher than the national baseline — but still capped.
Conventional closings are often faster. FHA requires a specific appraisal process that can add time.
Conventional works for most condos. FHA requires the condo project to be on an approved list — fewer qualify.