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Conforming Loans in Novato
Novato sits at an interesting price point in Marin County. Many properties here fall just inside conforming loan limits, making this program viable.
The conforming loan ceiling for high-cost counties like Marin changes annually. In 2024, that limit is $1,089,300 for single-family homes.
Properties above that threshold require jumbo financing. We see Novato buyers split roughly 60/40 between conforming and jumbo loans.
Conforming loans require 620 minimum credit score, though 740+ gets you the best rates. Most Marin County borrowers clear that bar easily.
Down payment starts at 3% for first-time buyers, 5% for repeat buyers. You'll pay PMI below 20% down until you hit that equity threshold.
Debt-to-income ratios cap at 50% in most cases. Fannie and Freddie are strict here—your total monthly debts can't exceed half your gross income.
W-2 income is easiest to document. Self-employed borrowers need two years of tax returns showing consistent earnings.
Every major lender offers conforming loans. That's both good and bad—rates vary by 0.25% to 0.50% for the same borrower profile.
Credit unions often match or beat big banks on conforming rates. We shop 200+ wholesale lenders to find pricing advantages you won't see going direct.
Rate locks matter in Novato. Escrow runs 30-45 days here, so we typically lock for 45 days minimum to avoid extension fees.
Lender overlays add requirements beyond Fannie/Freddie minimums. Some won't touch 3% down deals. Others cap DTI at 45% instead of 50%.
The conforming limit reset catches Novato buyers off guard. A home at $1.1M needs jumbo financing, which means different rates and stricter reserves.
We see buyers stretch to conforming limits when they shouldn't. Just because you qualify at $1,089,300 doesn't mean that payment fits your life.
Appraisal gaps happen in competitive markets. If you offer $1,050,000 but the home appraises at $1,020,000, you need to cover that $30K or renegotiate.
Conforming loans refinance cleanly later. Jumbo refis have fewer lender options and tighter qualification, so staying conforming preserves flexibility.
FHA loans allow 580 credit and 3.5% down, but you'll pay mortgage insurance for the loan's life on most deals. Conforming MIP drops at 20% equity.
Jumbo loans start at the conforming limit plus one dollar. Rates run 0.25-0.75% higher, and you'll need 10-20% down with 6-12 months reserves.
Adjustable-rate mortgages offer lower initial rates on conforming loans. A 7/1 ARM might save 0.50-0.75% versus a 30-year fixed right now.
Conventional 97 programs (3% down) compete with FHA but require 620 credit minimum. You avoid the FHA stigma some sellers dislike in multiple offers.
Novato's condo market needs scrutiny. Some developments don't meet Fannie/Freddie approval, forcing buyers into portfolio or non-QM loans.
Properties near Highway 101 sometimes appraise lower than comparable homes in quieter areas. Location adjustments affect whether you stay conforming.
Marin's housing stock skews older. Inspection-driven repairs can delay closing, so budget extra time and verify your rate lock won't expire.
HOA fees in Novato range from minimal to $600+ monthly. Lenders include these in your debt-to-income calculation, shrinking your buying power.
$1,089,300 for single-family homes in Marin County. This is a high-cost area limit, significantly above the standard $766,550 baseline.
Yes, if you're a first-time buyer or meet income limits. Repeat buyers typically need 5% down for conforming financing.
Conforming offers better rates and easier qualification up to $1,089,300. Above that, jumbo loans require larger down payments and higher reserves.
No. The condo development must be Fannie Mae or Freddie Mac approved. Some Novato complexes don't meet their guidelines.
740 or higher gets you top-tier pricing. You can qualify at 620, but rates increase significantly below 740.
30-45 days is typical. Older properties sometimes need extra appraisal or inspection time, so budget accordingly.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.