Question 1

What loan types are available for Novato home buyers?

Accepted Answer

We offer conventional, FHA, VA, jumbo, bank statement, DSCR, and more. Novato's high prices mean jumbo loans come up often.

Question 2

Do most Novato homes require a jumbo loan?

Accepted Answer

Many do. The 2026 conforming loan limit caps out well below typical Marin County prices. Anything above that limit requires jumbo financing.

Question 3

What credit score do I need to buy in Novato?

Accepted Answer

FHA allows scores down to 580 with 3.5% down. Jumbo lenders typically want 700 or higher. Conventional loans sit around 620 minimum.

Question 4

How much do I need to put down on a Novato home?

Accepted Answer

It depends on the loan. FHA requires 3.5% down. Jumbo lenders often want 10-20%. VA loans allow zero down for eligible veterans.

Question 5

Can self-employed buyers get a mortgage in Novato?

Accepted Answer

Yes. Bank statement loans and 1099 loans are built for self-employed borrowers. You skip tax returns and qualify on cash flow instead.

Question 6

What are bank statement loans and who are they for?

Accepted Answer

Bank statement loans use 12-24 months of deposits to verify income. They work well for freelancers, business owners, and consultants in Marin.

Question 7

What documents do I need to get pre-approved?

Accepted Answer

Typically two years of tax returns, recent pay stubs, bank statements, and a photo ID. Self-employed borrowers may substitute bank statements.

Question 8

How long does the mortgage process take in Novato?

Accepted Answer

Pre-approval usually takes 1-3 business days with us. Full closing runs 21-30 days for most conventional and FHA loans.

Question 9

What is a DSCR loan and can I use one for Novato rentals?

Accepted Answer

DSCR stands for Debt Service Coverage Ratio. The loan qualifies on rental income, not your personal income — great for Marin investment properties.

Question 10

Are VA loans a good fit for buying in Novato?

Accepted Answer

VA loans are excellent here. Zero down, no PMI, and competitive rates — though Marin prices often push loan amounts past standard VA limits.

Question 11

Does Novato have any USDA loan-eligible areas?

Accepted Answer

Parts of Novato's rural outskirts may qualify for USDA loans. We can run your address to confirm eligibility before you apply.

Question 12

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

Accepted Answer

PMI is private mortgage insurance. Lenders require it on conventional loans when your down payment is below 20%.

Question 13

How do I avoid paying PMI on a Novato purchase?

Accepted Answer

Put 20% down, or use a piggyback second loan to get there. Some lenders also offer lender-paid PMI in exchange for a slightly higher rate.

Question 14

What are typical closing costs in Marin County?

Accepted Answer

Budget 2-3% of the loan amount for closing costs. On a Marin jumbo loan, that adds up fast — plan accordingly before you make an offer.

Question 15

Can I roll closing costs into my loan?

Accepted Answer

On some loan types, yes. Seller concessions are another route. We structure deals to minimize cash out of pocket where possible.

Question 16

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

Accepted Answer

A bridge loan lets you tap your current home's equity to buy before you sell. It's common in Marin when timing between sales is tight.

Question 17

What is an interest-only loan and who should use one?

Accepted Answer

You pay only interest for a set period — usually 5-10 years. High-earning buyers who want lower initial payments sometimes use these in expensive markets.

Question 18

What is an ARM loan and is it risky?

Accepted Answer

An ARM (adjustable rate mortgage) starts fixed, then adjusts after a set period. They can save money upfront if you plan to sell or refinance before they adjust.

Question 19

What is a portfolio ARM and how is it different?

Accepted Answer

A portfolio ARM is held by the lender instead of sold to investors. That gives lenders more flexibility on qualification — useful for complex borrower profiles.

Question 20

Can foreign nationals buy property in Novato?

Accepted Answer

Yes. Foreign national loans are available for non-US residents buying in California. Requirements vary by lender but typically include larger down payments.

Question 21

What is an ITIN loan?

Accepted Answer

ITIN loans are for borrowers without a Social Security number. They use an Individual Taxpayer Identification Number to qualify instead.

Question 22

What is an asset depletion loan?

Accepted Answer

Lenders calculate income by dividing your liquid assets over a set number of months. Retirees or high-net-worth buyers with low income often use these.

Question 23

What is a profit and loss statement loan?

Accepted Answer

A CPA-prepared P&L stands in for tax returns to show income. It works for business owners whose returns don't reflect actual cash flow.

Question 24

What is a home equity line of credit (HELOC)?

Accepted Answer

A HELOC lets you borrow against your home's equity as a revolving line of credit. Marin homeowners use these for renovations or to fund other purchases.

Question 25

What's the difference between a HELOC and a home equity loan?

Accepted Answer

A HELOC is a revolving credit line. A home equity loan gives you a lump sum at a fixed rate — better if you know exactly what you need upfront.

Question 26

What is a reverse mortgage and who qualifies?

Accepted Answer

Reverse mortgages are for homeowners 62 and older. You draw on your equity without monthly payments — the loan is repaid when you sell or pass on.

Question 27

What is a construction loan for a Novato build?

Accepted Answer

Construction loans fund the build in draws as work progresses. Once done, they typically convert to a permanent mortgage. Lot size and zoning matter here.

Question 28

What is the difference between FHA and conventional loans?

Accepted Answer

FHA allows lower credit scores and smaller down payments but requires mortgage insurance. Conventional loans are more flexible at higher credit scores and larger down payments.

Question 29

Is FHA a good choice for Novato buyers?

Accepted Answer

FHA works well for buyers with limited down payment or lower credit. Just know that Marin prices often exceed FHA loan limits, requiring jumbo financing instead.

Question 30

What is a conforming loan and how does it apply in Novato?

Accepted Answer

A conforming loan meets Fannie Mae and Freddie Mac guidelines. Marin County qualifies for high-balance conforming limits, which helps some buyers avoid full jumbo pricing.

Question 31

What is a community mortgage?

Accepted Answer

Community mortgage programs are designed for low-to-moderate income buyers. They often feature reduced PMI, flexible guidelines, and down payment assistance options.

Question 32

Does SRK CAPITAL work with first-time buyers in Novato?

Accepted Answer

Yes. We help first-time buyers structure down payment strategy, choose the right loan, and get pre-approved quickly. Marin is tough — start early.

Question 33

How competitive is the Novato housing market?

Accepted Answer

Novato is one of Marin's more accessible cities, but it's still a competitive Bay Area market. A strong pre-approval letter is non-negotiable before you offer.

Question 34

Should I get pre-qualified or pre-approved?

Accepted Answer

Pre-approval. Pre-qualification is informal and carries no weight with Marin sellers. A full pre-approval shows you've been underwritten and are ready to close.

Question 35

What debt-to-income ratio do lenders require?

Accepted Answer

Most conventional lenders cap at 45% DTI. FHA can go to 57% in some cases. Jumbo lenders vary — some are stricter, especially at high loan amounts.

Question 36

Can I buy a second home or vacation property in Novato?

Accepted Answer

Yes. Second home financing requires at least 10% down and a slightly higher rate than a primary residence. Investment property rules are different again.

Question 37

What is an equity appreciation loan?

Accepted Answer

An equity appreciation loan lets you access a portion of your home's future value now. It's a newer product that some Marin homeowners use for liquidity without monthly payments.

Question 38

How does SRK CAPITAL shop rates for Novato buyers?

Accepted Answer

We access 200+ wholesale lenders and run your loan scenario across them. You get the best rate and program fit without applying everywhere yourself.

Question 39

Does my rate depend on my credit score?

Accepted Answer

Yes. Rates tier by credit score — better scores get lower rates. Even a 20-point difference can cost or save thousands over the life of a jumbo loan.

Question 40

Are rates the same across all lenders in Marin County?

Accepted Answer

No. Rates vary by lender, loan type, credit profile, and property. Rates vary by borrower profile and market conditions — that's exactly why we shop them.

Novato & Marin County Mortgage FAQs