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in Larkspur, CA
Larkspur buyers face a choice between conventional financing and VA loans if they qualify. Your military service status determines eligibility for VA loans, but even qualifying veterans should compare both options.
Conventional loans dominate Marin County real estate, but VA loans offer unbeatable terms for eligible borrowers. The right choice depends on your down payment capacity, credit profile, and long-term ownership plans.
Conventional loans aren't backed by government agencies, so lenders set their own underwriting standards. You'll need a 620 credit score minimum, though 740+ gets the best rates.
Down payments start at 3% for first-time buyers and 5% for repeat buyers. Put down less than 20% and you'll pay private mortgage insurance until you hit 20% equity.
These loans work for primary homes, second homes, and investment properties. Loan limits reach $1,149,825 in Marin County for single-family homes, covering most Larkspur properties.
VA loans guarantee zero down payment for eligible veterans and active military. No monthly mortgage insurance ever, regardless of down payment.
You'll pay a one-time funding fee ranging from 1.4% to 3.6% of the loan amount, depending on down payment and prior VA loan use. Veterans with service-connected disabilities pay zero funding fee.
Sellers can pay all your closing costs in California markets. VA appraisals include stricter property condition requirements than conventional loans, which sometimes causes issues in older Larkspur homes.
The down payment gap matters most in expensive Marin markets. A conventional buyer needs $34,500 down on a $1.15M Larkspur home at 3% down, while VA buyers pay nothing upfront.
Credit flexibility separates these programs significantly. VA lenders approve 580 credit scores regularly, while conventional loans get expensive below 680.
Property condition standards differ sharply. VA appraisers flag peeling paint, roof issues, and safety hazards that conventional appraisers ignore. This kills deals on fixer properties.
Occupancy rules restrict both loan types to primary residences only. Neither works for investment properties or vacation homes in Larkspur.
Use VA loans if you qualify, period. The zero down payment and no PMI combination saves tens of thousands over conventional financing, even accounting for the funding fee.
Switch to conventional only if the property fails VA inspection standards or you're buying a second home. Some Larkspur sellers resist VA offers due to appraisal concerns, but that bias is fading in competitive markets.
Veterans with large down payments should still compare both options. A 20% down conventional loan might offer lower rates than VA in certain credit profiles, though this is rare.
Yes, if the condo complex is VA-approved. Many Marin condos aren't on the VA approval list, requiring conventional financing instead.
Not anymore. VA appraisals add 3-5 days compared to conventional, but experienced lenders close both in 21-25 days.
VA still wins in most cases due to zero PMI. Run payment comparisons, but VA typically beats conventional even with excellent credit.
Sellers can reject any offer. VA inspection concerns drive some rejections, but strong offers overcome this in competitive situations.
No. The one-time funding fee costs less over time than monthly PMI on conventional loans under 20% down.