Question 1

What income limits apply to community mortgages in Larkspur?

Accepted Answer

Limits vary by program, typically 80-120% of area median income. For Marin County, that translates to $120K-180K+ depending on household size and specific program.

Question 2

Can I use community mortgages for investment properties?

Accepted Answer

No. These programs require owner occupancy as your primary residence. Most include occupancy requirements for 3-5 years minimum.

Question 3

How does down payment assistance get repaid?

Accepted Answer

Depends on the program. Some require repayment at sale or refinance. Others forgive the loan after you occupy the home for a set period, often 3-5 years.

Question 4

Do community mortgages have higher interest rates?

Accepted Answer

Rates typically run 0.25-0.75% above conventional loans. However, reduced MI and down payment grants often make the total cost competitive or better.

Question 5

Can self-employed borrowers qualify for community programs?

Accepted Answer

Yes. You'll need tax returns or bank statements to verify income. Guidelines are more flexible than conventional loans for income documentation.

Question 6

What credit issues disqualify borrowers from community mortgages?

Accepted Answer

Recent foreclosure or bankruptcy typically require 2-3 year waiting periods. Active collections under $5,000 usually don't block approval if you can explain them.

Community Mortgages in Larkspur: Breaking Through Marin's Price Barrier