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in Mill Valley, CA
Mill Valley's median home prices push most buyers toward government-backed financing. Both FHA and VA loans offer lower barriers to entry than conventional mortgages, but they work very differently.
FHA opens doors for first-timers with modest savings. VA rewards military service with zero down payment and no mortgage insurance—if you qualify.
FHA loans require just 3.5% down with a 580 credit score. That's $35,000 on a $1 million Mill Valley home—far less than the 20% conventional lenders demand.
You'll pay mortgage insurance for the loan's life, though. Upfront MIP costs 1.75% at closing, plus annual premiums of 0.55% to 0.85% depending on your down payment and loan term.
FHA works for buyers who have limited savings but steady W-2 income. Credit dings from medical bills or one-time financial hits don't disqualify you the way they do with conventional loans.
VA loans put zero down and no monthly mortgage insurance on the table. For eligible veterans and service members, this beats every other program in Marin County.
The VA funding fee runs 2.15% to 3.3% for first-time use, but it rolls into your loan amount. Disabled veterans and Purple Heart recipients pay nothing.
Sellers in Mill Valley sometimes resist VA buyers because appraisals scrutinize property condition more than conventional loans. A good broker smooths this by pre-qualifying you and explaining the process upfront.
The biggest split is mortgage insurance. FHA charges 0.55% to 0.85% annually for the loan's life—that's $458 to $708 monthly on a $1 million loan. VA eliminates this cost entirely.
Down payment requirements separate them too. FHA needs 3.5% minimum while VA asks for nothing. On Mill Valley prices, that 3.5% often exceeds $30,000.
Eligibility differs sharply. Anyone with decent credit qualifies for FHA. VA restricts to veterans, active-duty personnel, and surviving spouses with valid Certificates of Eligibility.
Property standards matter more with VA. Their appraisers flag peeling paint, roof wear, and safety issues that FHA might pass. This slows some Mill Valley deals involving older homes.
If you qualify for VA, use it. Zero down plus no mortgage insurance beats FHA on every Mill Valley property we've financed. Even with the funding fee, you save thousands annually.
FHA makes sense when VA isn't an option. You're trading higher lifetime costs for accessibility—anyone with 580 credit and 3.5% down can buy. That matters in expensive Marin markets.
Run both scenarios with actual Mill Valley prices. A $1.2 million home with FHA costs roughly $8,500 more per year than VA due to mortgage insurance alone. Over 10 years, that's $85,000.
Consider resale timelines too. If you plan to stay under five years, FHA's upfront MIP stings less. VA buyers planning longer holds multiply their savings as years pass without monthly MI.
No. You choose one program per purchase. VA always costs less for eligible borrowers due to zero mortgage insurance.
Some do because VA appraisals are stricter. Strong pre-approval and quick closings overcome this resistance in most deals.
VA has no loan limit for full-entitlement borrowers. FHA caps at $1,089,300 in Marin County for 2024.
Yes, if you gain VA eligibility through service. This eliminates mortgage insurance and often cuts your rate.
Yes. FHA accepts gifts for the entire 3.5%. VA allows gifts to cover closing costs since down payment is zero.
FHA typically by a few days. VA appraisals take slightly longer due to stricter property standards.