Novato Mortgage FAQs: Your Questions Answered by Local Brokers

FHA loans require 3.5% down, conventional loans 3-5% for primary homes. VA and USDA loans offer zero down if you qualify.

Depends on purchase price. Conforming loans in Marin County go up to $766,550 in 2024, anything above requires jumbo financing.

FHA accepts 580, conventional typically wants 620 minimum. Jumbo loans for higher-priced Novato homes usually require 700+.

Standard purchase loans close in 30 days. Competitive Novato market often requires 21-day closes, which we handle regularly.

Two years tax returns, two months bank statements, 30 days pay stubs, W-2s. Self-employed borrowers need profit and loss statements.

Yes. We offer bank statement loans, 1099 loans, and P&L programs that don't require traditional W-2 income verification.

Expect 2-5% of purchase price. Includes lender fees, title insurance, escrow, and county recording fees specific to Marin.

Only if you're staying long-term. One point costs 1% of loan amount and typically drops your rate 0.25%.

FHA allows lower credit and smaller down payments but requires mortgage insurance for life unless you refinance. Conventional drops PMI at 20% equity.

If you're active military, veteran, or eligible spouse, yes. VA loans offer zero down with no mortgage insurance.

Only if the complex is VA-approved. We check approval status before you make an offer to avoid wasted time.

Debt Service Coverage Ratio loans qualify based on rental income, not personal income. Ideal for Novato investment properties.

Yes. We offer foreign national loans that don't require U.S. credit history or Social Security numbers.

Mortgages for borrowers with Individual Taxpayer ID numbers instead of Social Security numbers. Available for Novato purchases.

Lenders cap your total monthly debt at 43-50% of gross income. We pre-qualify you before you shop.

Private mortgage insurance costs 0.3-1.5% annually on conventional loans under 20% down. Put 20% down or use piggyback loans to avoid it.

Usually yes, through an escrow account. Marin County collects roughly 1.2% of assessed value annually.

You should. Pre-approval shows sellers you're serious and helps you move fast in competitive situations.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified income, assets, and credit.

Lock if you're risk-averse or closing soon. Float if rates are dropping and you can handle potential increases.

Lower initial rate that adjusts after fixed period—typically 5, 7, or 10 years. Good if you'll sell before adjustment.

Short-term financing that lets you buy a Novato home before selling your current property. We close them in days.

Yes on most loan types. Donor must provide a gift letter stating funds don't require repayment.

Qualifies you based on assets divided by loan term instead of income. Works for retirees or high-net-worth buyers.

Not legally required but recommended. Lenders require standard homeowners insurance; earthquake coverage is separate.

You renegotiate price, bring more cash, or walk away if you have an appraisal contingency. We help navigate all three.

FHA 203k and conventional renovation loans let you finance purchase plus repairs in one loan. Good for older North Bay properties.

You pay only interest for initial period—usually 10 years. Principal payments start later. Higher-income buyers use these for cash flow flexibility.

15-year saves interest but doubles monthly payment. 30-year offers flexibility. Novato prices usually push buyers toward 30-year terms.

Yes. FHA allows it after two years, conventional after four years. Must show clean credit since discharge.

Adjustable rate mortgage held by the lender instead of sold to Fannie or Freddie. More flexible underwriting for complex situations.

We use 12-24 months of business bank deposits instead of tax returns. Ideal for self-employed borrowers who write off income.

Some conventional investor loans allow it with strong credit. Most require 20-25% down for non-owner occupied properties.

Home equity line of credit acts like a credit card secured by your house. Useful for renovations or bridging property purchases.

Yes. Asset-based loans that close in days for time-sensitive deals or properties that won't qualify for traditional financing.

Down payment assistance program for low-to-moderate income buyers. Limited availability in Marin County—ask about current options.

Only on FHA, VA, and USDA loans, and only if terms make sense. Most Novato sellers have recent loans with higher rates.

Multiple mortgage inquiries within 45 days count as one pull. Shop freely during that window without score damage.

Conventional if you have 5% down and 680+ credit. FHA costs more long-term but accepts lower scores and smaller down payments.

We shop 200+ lenders to find better rates and programs banks don't offer. One application, multiple options.