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in Corte Madera, CA
Both FHA and VA loans offer paths into Corte Madera's competitive Marin County market with less cash upfront than conventional financing. But they serve different borrowers with different trade-offs.
FHA loans work for anyone who qualifies. VA loans require military service but deliver unmatched terms. Your eligibility often decides this comparison before you look at the numbers.
FHA loans let you buy with 3.5% down if your credit score hits 580. Drop to 500 and you need 10% down. The program insures your lender against default, which is why they accept higher risk.
You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums of 0.55% to 0.85% depending on loan size and term. These premiums stick around for the loan's life on most purchases. Debt-to-income can stretch to 50% with strong compensating factors.
VA loans require zero down payment for eligible veterans, active-duty service members, and qualifying surviving spouses. No monthly mortgage insurance. Ever. That's a massive cost advantage over FHA in expensive markets like Marin County.
You pay a one-time funding fee of 2.15% to 3.3% depending on down payment and whether it's your first VA loan use. Disabled veterans get that waived entirely. Credit and income standards are flexible but not automatic—lenders still underwrite risk.
The down payment gap is obvious: 3.5% FHA versus 0% VA. On a $1.2 million Corte Madera home, that's $42,000 in cash saved with VA. Monthly costs diverge even more—FHA mortgage insurance adds $550 to $850 monthly on that same loan while VA has none.
Eligibility flips the script. FHA accepts any qualified buyer. VA requires a Certificate of Eligibility proving military service. If you have VA eligibility, the financial advantage is so large that FHA rarely makes sense unless you've exhausted your VA entitlement on another property.
Both programs cap what you can borrow in high-cost counties. Marin County's 2024 FHA limit is $1,089,300 for single-family homes. VA uses the same limit. Above that, you need a jumbo loan or conventional financing.
If you have VA eligibility, use it. The zero-down structure and no mortgage insurance beat FHA in every scenario unless you need to preserve VA entitlement for a future purchase. I've closed hundreds of these—VA wins on cost every time for qualified borrowers.
FHA makes sense when you don't qualify for VA benefits or when your credit sits in the 580-620 range where conventional loans won't approve you. It's a strong backup option with more flexible standards than conventional financing, just not as powerful as VA.
In Corte Madera's market, both programs bump against loan limits quickly. Plan for those caps when shopping. A $1.3 million listing needs different financing strategies regardless of which government program you prefer.
No. Both require the property to be your primary residence. You can't have two primary residences simultaneously, so you'll need to choose one program.
Both take 30-45 days typically. VA loans sometimes require an additional VA appraisal, but experienced lenders handle both programs at the same speed.
Sellers often prefer conventional financing, but between FHA and VA, there's no meaningful difference. Both require appraisals that protect the buyer, which some sellers dislike in competitive markets.
Yes, if you gain VA eligibility through military service. It's called a VA cash-out or rate-term refinance and eliminates that FHA mortgage insurance permanently.
FHA approves at 580 officially, but most lenders want 600+. VA has no official minimum, but expect 620 as a practical floor with most lenders.