Question 1

What kind of mortgage do most Mill Valley buyers need?

Accepted Answer

Most homes here exceed conforming loan limits, so jumbo loans are the norm. Self-employed buyers often pair jumbo financing with bank statement or asset depletion programs.

Question 2

What is the conforming loan limit in Marin County?

Accepted Answer

Marin County is a high-cost area with an elevated conforming limit. Any loan above that threshold is a jumbo loan and follows stricter guidelines.

Question 3

How does a jumbo loan differ from a conventional loan?

Accepted Answer

Jumbo loans exceed conforming limits and aren't backed by Fannie Mae or Freddie Mac. Lenders set their own rules — credit, reserves, and down payment requirements vary widely.

Question 4

What credit score do I need to buy in Mill Valley?

Accepted Answer

For jumbo loans, most lenders want 700 or higher. Some non-QM programs approve down to 620, but expect a higher rate. Rates vary by borrower profile and market conditions.

Question 5

How much do I need to put down on a jumbo loan?

Accepted Answer

Most jumbo lenders require at least 10-20% down. Higher loan amounts often require 20-25%. Your reserves matter as much as your down payment.

Question 6

What counts as reserves for a jumbo mortgage?

Accepted Answer

Reserves are funds left in your accounts after closing. Jumbo lenders typically require 6-18 months of mortgage payments in liquid or near-liquid assets.

Question 7

I'm self-employed. Can I still get a mortgage in Mill Valley?

Accepted Answer

Yes — bank statement loans and P&L loans are built for this. You qualify on 12-24 months of deposits, not your tax return. We close these regularly.

Question 8

What is a bank statement loan?

Accepted Answer

A bank statement loan uses 12 or 24 months of bank deposits to calculate your income. It's a non-QM product designed for self-employed borrowers whose tax returns understate earnings.

Question 9

What is an asset depletion loan?

Accepted Answer

Lenders divide your liquid assets over a set number of months to create an imputed income figure. It works well for retirees or high-net-worth buyers with low taxable income.

Question 10

Can I use a 1099 to qualify for a mortgage?

Accepted Answer

Yes. 1099 loans use your contractor or freelance income without requiring full tax returns. You typically need 12-24 months of 1099s plus supporting documentation.

Question 11

What is a portfolio ARM loan?

Accepted Answer

A portfolio ARM is an adjustable-rate mortgage held by the lender rather than sold to investors. Guidelines are more flexible, which suits complex Mill Valley buyers well.

Question 12

Are interest-only loans available in Mill Valley?

Accepted Answer

Yes. Interest-only loans lower your monthly payment during the initial period. They're common among high-income buyers who prefer cash flow flexibility. Rates vary by borrower profile and market conditions.

Question 13

What is a bridge loan and when does it make sense?

Accepted Answer

A bridge loan lets you tap equity in your current home to buy before you sell. In a fast market like Mill Valley, it removes the contingency and strengthens your offer.

Question 14

Does Mill Valley have any USDA-eligible properties?

Accepted Answer

Almost certainly not. USDA loans are for rural areas, and Mill Valley's density and income levels disqualify it. Buyers here should focus on jumbo or conventional programs.

Question 15

Can I use an FHA loan to buy in Mill Valley?

Accepted Answer

Technically yes, but the FHA loan limit in Marin County may fall short of most list prices. FHA also requires the property to pass a strict appraisal, which older homes may not.

Question 16

FHA vs. conventional — which is better for Marin buyers?

Accepted Answer

For most Mill Valley buyers, conventional wins. Higher loan limits, no upfront mortgage insurance, and no property condition restrictions. FHA is better when credit is below 680.

Question 17

What is PMI and when do I have to pay it?

Accepted Answer

PMI is private mortgage insurance. You pay it on conventional loans when your down payment is below 20%. It cancels automatically once you reach 20% equity.

Question 18

Are VA loans usable in Mill Valley?

Accepted Answer

Yes, if you're a qualifying veteran or service member. VA loans require no down payment and no PMI. High-balance VA loans are available for Marin County's price range.

Question 19

What documents do I need to apply for a mortgage?

Accepted Answer

For W-2 borrowers: two years of tax returns, 30 days of pay stubs, and two months of bank statements. Self-employed borrowers swap pay stubs for 12-24 months of bank records or 1099s.

Question 20

How long does mortgage approval take in California?

Accepted Answer

Pre-approval can happen in 24-48 hours. Full underwriting typically takes 2-3 weeks. Complex jumbo or non-QM files can run 3-4 weeks. Start early.

Question 21

What is the difference between pre-qualification and pre-approval?

Accepted Answer

Pre-qualification is an estimate based on what you tell us. Pre-approval involves verified documents and a credit pull. Sellers in Mill Valley expect pre-approval, not pre-qual.

Question 22

What are typical closing costs in Mill Valley?

Accepted Answer

Expect 1-3% of the loan amount. In Marin County, transfer taxes and title fees add up fast. Budget for lender fees, escrow, title, and prepaid items like insurance and property tax.

Question 23

Can I roll closing costs into my loan?

Accepted Answer

On some programs, yes. You can also ask the seller for a credit to cover closing costs. On jumbo loans, rolling costs in isn't always available — ask your broker.

Question 24

What is a rate buydown and is it worth it?

Accepted Answer

A buydown uses upfront points to lower your rate. It makes sense if you plan to stay more than 5-7 years. Run the break-even math before paying points. Rates vary by borrower profile and market conditions.

Question 25

What is an ARM and should I consider one in Marin?

Accepted Answer

An ARM starts at a fixed rate for 5, 7, or 10 years, then adjusts. High-income buyers who plan to sell or refi within 10 years often save significantly with an ARM.

Question 26

What is a HELOC and can I get one on my Mill Valley home?

Accepted Answer

A HELOC is a revolving line of credit tied to your home equity. With Marin's home values, many owners qualify for large credit lines. It's a flexible way to access cash without refinancing.

Question 27

What is a Home Equity Loan versus a HELOC?

Accepted Answer

A Home Equity Loan gives you a lump sum at a fixed rate. A HELOC is a credit line with a variable rate. The right choice depends on whether you need funds all at once or over time.

Question 28

Can foreign nationals buy property in Mill Valley?

Accepted Answer

Yes. We offer Foreign National loan programs for non-resident buyers. Expect larger down payments and higher rates. No US credit history or SSN required on most programs.

Question 29

What is an ITIN loan?

Accepted Answer

An ITIN loan is for borrowers who have a tax ID number but no Social Security number. These are non-QM products with flexible guidelines for documented immigrants.

Question 30

What is a DSCR loan and who uses it?

Accepted Answer

DSCR stands for Debt Service Coverage Ratio. It qualifies investors based on rental income, not personal income. Mill Valley rentals can command strong rents, making DSCR math work.

Question 31

Can I get a construction loan for a Mill Valley property?

Accepted Answer

Yes. Construction loans fund the build in draws, then convert to a permanent mortgage. In Marin, lot costs and permits are high — budget carefully before you start.

Question 32

What is a hard money loan?

Accepted Answer

Hard money is short-term, asset-based financing from private lenders. Rates are high, but approval is fast. It's used for fix-and-flip or situations where traditional financing won't close in time.

Question 33

What is a reverse mortgage and who qualifies?

Accepted Answer

A reverse mortgage lets homeowners 62+ convert equity into cash without monthly payments. With Mill Valley's high values, the eligible loan amounts can be substantial.

Question 34

Is Mill Valley competitive enough that I need no contingencies?

Accepted Answer

It depends on the property and price point. Waiving contingencies is a risk — talk to your agent and broker together. A bridge loan or strong pre-approval can help without waiving everything.

Question 35

What neighborhoods in Mill Valley have the highest prices?

Accepted Answer

Hillside homes with bay views and properties near Tam Valley command premium prices. Downtown walkability also drives value. Every block can have a different price dynamic.

Question 36

How does property type affect my mortgage options?

Accepted Answer

Condos, single-family homes, and multi-units each have different guidelines. Condos need HOA review. Multi-units open the door to investor loan programs. Property type shapes your lender options.

Question 37

How much income do I need to buy in Mill Valley?

Accepted Answer

Lenders use a debt-to-income ratio — usually 43-50% max. On a high-balance jumbo loan, you'll need substantial verifiable income. Non-QM programs have more flexible ratios.

Question 38

What is debt-to-income ratio and how does it affect approval?

Accepted Answer

DTI is your monthly debt payments divided by gross monthly income. Most conventional lenders cap it at 45-50%. Going over means finding a non-QM product with a higher limit.

Question 39

Should I lock my rate or float it?

Accepted Answer

Rate locks protect you from increases during underwriting. Most borrowers should lock as soon as they're in contract. Floating only makes sense if rates are clearly trending down. Rates vary by borrower profile and market conditions.

Question 40

Why use a mortgage broker instead of a bank for a Mill Valley purchase?

Accepted Answer

A broker shops your file across dozens of lenders simultaneously. Banks only offer their own products. In a complex market like Mill Valley, having more options usually means a better deal.

Mill Valley Mortgage FAQs — Answered by a Marin Broker