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in Mill Valley, CA
Mill Valley runs expensive. Most homes here push well past conforming loan limits, which changes how these two loan types perform.
Conventional and FHA loans both work in Marin County — but for very different buyers. Knowing which fits your situation saves time and money.
Conventional loans aren't backed by the government. That means stricter credit requirements — but also more flexibility on loan size and property type.
With 20% down, you skip private mortgage insurance entirely. That matters a lot in a market where loan amounts are large.
FHA loans require just 3.5% down with a 580 credit score. For buyers who haven't saved a large down payment, that's a real opening.
The catch is mortgage insurance. FHA charges both an upfront premium and a monthly premium — and it doesn't drop off automatically like conventional PMI.
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 Mill Valley.
Mill Valley runs expensive. Most homes here push well past conforming loan limits, which changes how these two loan types perform.
Conventional and FHA loans both work in Marin County — but for very different buyers. Knowing which fits your situation saves time and money.
Conventional loans aren't backed by the government. That means stricter credit requirements — but also more flexibility on loan size and property type.
The biggest difference is mortgage insurance. Conventional PMI drops when you hit 20% equity. FHA's monthly premium stays until you refinance or pay off the loan.
HousingWire flagged that the 30-year fixed hit 6.57% recently. At that rate, the mortgage insurance gap between these two loans costs real money monthly. Rates vary by borrower profile and market conditions.
Strong credit, solid down payment, buying in Mill Valley? Conventional wins. You'll save on insurance costs over the life of the loan.
If your credit is below 680 or your down payment is under 10%, FHA gives you a realistic path to closing. Just price in that permanent mortgage insurance.
The 2026 FHA loan limit in Marin County is $1,249,125. That matches the conventional conforming high-balance limit for this area.
Not easily. Most FHA loans carry mortgage insurance for the life of the loan. You'd need to refinance into a conventional loan to remove it.
Lenders require at least 620 for conventional approval. Rates improve significantly at 740 and above.
Yes, FHA is usable here — but the home must be your primary residence. Investment properties and most second homes don't qualify.
It depends on your down payment and credit score. Conventional often wins long-term due to removable PMI, but FHA may have lower rates for weaker credit profiles.