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Novato sits at the northern edge of Marin County. Prices here run high relative to FHA loan limits — that's the first thing buyers need to understand.
FHA loan limits are set by county. Marin County's limits are among the highest in California, which helps buyers compete in this market.
580 (3.5% down)
Min Credit Score
3.5%
Min Down Payment
Up to 57%
Max DTI
Primary residence only
Loan Use
Profile & market conditions
Rates Vary By
FHA Loans in Novato
You need a 580 credit score to put 3.5% down. Drop below 580, and lenders require 10% down instead.
FHA allows debt-to-income ratios up to 57% with strong compensating factors. That flexibility helps buyers in high-cost areas like Novato.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in Novato.
Novato sits at the northern edge of Marin County. Prices here run high relative to FHA loan limits — that's the first thing buyers need to understand.
FHA loan limits are set by county. Marin County's limits are among the highest in California, which helps buyers compete in this market.
You need a 580 credit score to put 3.5% down. Drop below 580, and lenders require 10% down instead.
Most retail banks offer FHA, but their overlays — extra requirements on top of FHA guidelines — can be brutal. One lender may cap DTI at 45% when FHA allows 57%.
At SRK CAPITAL, we shop FHA across 200+ wholesale lenders. That means we find lenders whose overlays actually fit your profile, not whoever the bank pushes.
FHA mortgage insurance never goes away if you put less than 10% down. That's a cost most buyers underestimate when comparing to conventional loans.
In Novato, many buyers who qualify for FHA also qualify for conventional at 5% down. Run both scenarios before committing — the numbers often surprise people.
FHA vs. conventional comes down to credit score and down payment. Below 680 credit, FHA pricing usually wins. Above 720 with 5% down, conventional often beats it.
VA loans beat FHA for eligible veterans — no down payment, no monthly mortgage insurance. If you served, start there, not here.
Novato is one of Marin's most accessible entry points. But FHA appraisals here can be strict — the appraiser must clear health and safety conditions before closing.
Older Novato homes sometimes flag peeling paint, aging water heaters, or deferred maintenance. These can trigger FHA repair requirements that slow deals down.
Marin County falls in a high-cost area, so FHA limits exceed the national baseline. Check HUD's current limit table — it updates annually.
Only FHA-approved condo projects qualify. Check HUD's condo approval list before you make an offer — many Novato complexes are not on it.
FHA requires an appraisal, not a full inspection. Hire your own inspector separately — an appraisal won't catch everything.
With less than 10% down, FHA mortgage insurance lasts the full loan term. Put 10% or more down and it drops off after 11 years.
Some sellers prefer conventional buyers due to stricter FHA appraisal rules. A strong offer strategy and fast pre-approval can offset that concern.
Yes. FHA allows 100% of your down payment to come from a documented gift. The donor cannot be the seller or a party with interest in the deal.