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in Novato, CA
Novato's median home prices in Marin County put conventional and VA loans in direct competition for qualified buyers. Veterans and service members get a powerful advantage with zero down VA financing, while conventional loans offer speed and flexibility for everyone else.
Both loan types work well in Novato's market, but your military status changes everything. Understanding the cost differences and approval requirements helps you lock the right loan before writing an offer.
Conventional loans aren't backed by any government agency. You need 620+ credit and 3-5% down for most deals, though 20% down avoids mortgage insurance entirely.
These loans hit higher price limits than most government options — critical in Marin County. Lenders approve them faster because there's no VA appraisal process or funding fee calculations to slow things down.
Rates vary by borrower profile and market conditions. Strong credit and bigger down payments unlock the best pricing, often beating VA rates for borrowers with 740+ scores and 20% equity.
VA loans are guaranteed by the Department of Veterans Affairs for eligible veterans, active-duty service members, and qualifying spouses. You put zero down and pay no monthly mortgage insurance, which saves hundreds per month compared to low-down conventional financing.
The catch: VA appraisals are stricter than conventional. Appraisers flag health and safety issues that conventional underwriters ignore, and repairs must close before funding.
You'll pay a one-time VA funding fee unless you're exempt due to disability rating. That fee ranges from 1.4% to 3.6% depending on down payment and whether you've used the benefit before, but it rolls into the loan.
Down payment splits these loans cleanly. VA requires nothing upfront while conventional demands at least 3%, usually more for competitive Novato offers.
Monthly costs favor VA heavily at low equity. A conventional buyer with 5% down pays PMI until hitting 20% equity — that's $200-400 monthly on a typical Marin purchase.
Appraisal standards create the biggest transaction risk difference. Conventional appraisers note cosmetic issues but rarely kill deals over chipped paint or minor roof wear. VA appraisers flag those items as mandatory repairs, and sellers in hot markets often reject VA offers because of it.
Closing speed matters in multiple-offer situations. Conventional loans close in 21-30 days with cooperative appraisals. VA loans add 7-14 days for stricter appraisal requirements and funding fee calculations.
Use your VA benefit if you qualify and plan to live in the property. The zero-down advantage and lack of PMI save tens of thousands over the loan life, even with the funding fee.
Switch to conventional if you're buying a fixer, facing multiple offers, or purchasing investment property. VA loans don't allow rentals or second homes, and strict condition requirements kill deals on properties that need work.
Consider conventional even as a veteran if you have 20% down and 760+ credit. At that profile, conventional rates often beat VA pricing, and you avoid the funding fee entirely while keeping future VA eligibility for a zero-down backup purchase.
Novato's market conditions matter too. In slower markets with fewer competing offers, VA's appraisal requirements cause less concern. When inventory is tight and sellers pick from multiple bids, conventional financing wins offers.
Only if repairs complete before closing. VA appraisers require all health and safety issues fixed, which makes fixer properties difficult compared to conventional financing.
No. You still pay title, escrow, and prepaid costs at closing. The VA funding fee can roll into the loan, but other costs require cash or seller credits.
Not automatically, but many prefer conventional in competitive situations. Strong preapproval and quick closing timelines help overcome seller concerns about VA appraisals.
Yes, but it restarts underwriting and delays closing. Decide which loan fits before writing offers to avoid timeline complications.
Yes. VA loan limits no longer cap most transactions after rule changes, and conventional conforming limits cover properties up to $1,149,825 in high-cost areas like Marin.