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in Mill Valley, CA
Mill Valley's median home prices push $2 million in many neighborhoods. That price point makes your loan choice critical — especially when VA benefits can eliminate a $400,000 down payment.
I've closed both loan types in Marin for 15 years. The right choice depends on whether you qualify for VA benefits and how much cash you want tied up in the purchase.
Conventional loans dominate Mill Valley purchases because most buyers don't qualify for VA. You need 5% down minimum, though 20% avoids mortgage insurance and strengthens offers in competitive situations.
These loans cap at $1,149,825 in Marin as conforming loans. Above that, you enter jumbo territory with stricter requirements. Credit scores below 680 face rate penalties that add up fast on million-dollar mortages.
Sellers love conventional offers because there's no VA appraisal process. In multiple-offer scenarios, that often matters more than a slightly higher price.
VA loans let eligible veterans and service members buy Mill Valley homes with zero down. You pay a funding fee (2.15% for first-time zero-down users), but you can roll that into the loan amount.
The VA loan limit doesn't cap your purchase price anymore. You can buy a $2 million Mill Valley home — you just need a down payment on the amount above $1,149,825. The benefit remains massive compared to conventional requirements.
VA appraisals scrutinize property condition more than conventional appraisals. Homes with deferred maintenance sometimes need repairs before closing. That can kill deals in as-is situations.
Down payment separates these loans more than anything. Conventional requires 5-20% cash. VA requires zero if you stay under $1,149,825. On a $1.5 million Mill Valley home, that's $75,000 minimum versus potentially zero.
Mortgage insurance works differently. Conventional loans under 20% down carry PMI until you hit 20% equity. VA loans never have mortgage insurance, though the upfront funding fee costs 2.15% on zero-down purchases.
Appraisals cause more VA deals to stumble. The VA wants properties move-in ready with no peeling paint, functioning systems, and solid foundations. Conventional appraisers note issues but rarely require repairs.
Use VA if you qualify and want to preserve cash. Paying 2.15% upfront beats tying up $200,000 in a down payment for most veterans. Just budget for potential appraisal repairs on older Mill Valley properties.
Go conventional if you're not VA-eligible or buying a fixer that won't pass VA standards. Also choose conventional when competing against multiple offers — sellers pick conventional buyers over VA buyers at the same price 70% of the time.
Many Mill Valley veterans use VA for their first purchase, then switch to conventional for move-up homes. You can use VA benefits multiple times, but the funding fee increases to 3.3% on subsequent zero-down purchases.
Yes, but you'll need a down payment on the amount above $1,149,825. On a $2 million purchase, that's roughly 17% down — still better than 20% conventional.
In my experience, yes. Sellers worry about appraisal issues and longer timelines. An escalation clause can overcome this, but conventional usually wins at equal price.
Older homes with deferred maintenance, peeling exterior paint, or outdated systems. The VA wants properties move-in ready with no safety hazards.
On Mill Valley purchase prices, each point costs $15,000-$20,000. Break-even often takes 7-10 years. Most buyers skip points and keep cash liquid.
Only if you're receiving VA disability compensation or you're a surviving spouse. Otherwise, the 2.15% fee applies to all zero-down VA purchases.
VA rates run 0.25-0.50% lower typically. But conventional loans avoid the 2.15% funding fee. Compare total costs, not just the rate.