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in San Anselmo, CA
San Anselmo sits in Marin County — one of California's priciest markets. Your loan choice here has real consequences.
Conventional and FHA loans are both fixed-rate options. But they serve different borrower profiles and come with different costs.
Conventional loans aren't backed by the government. Lenders take on more risk, so they set stricter standards.
You typically need a 620+ credit score and 3-5% down. Put down 20% and you skip private mortgage insurance entirely.
FHA loans are insured by the federal government. That insurance lets lenders approve borrowers with lower scores and smaller down payments.
You can qualify with a 580 credit score and 3.5% down. Scores between 500-579 require 10% down.
Local decision guide
Use this comparison to weigh Conventional Loans and FHA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in San Anselmo.
San Anselmo sits in Marin County — one of California's priciest markets. Your loan choice here has real consequences.
Conventional and FHA loans are both fixed-rate options. But they serve different borrower profiles and come with different costs.
Conventional loans aren't backed by the government. Lenders take on more risk, so they set stricter standards.
Mortgage insurance is the biggest cost difference. FHA charges an upfront premium plus annual MIP that often never goes away.
HousingWire flagged the 30-year fixed hitting 6.57% recently. At that rate, FHA's extra insurance cost adds up fast over 30 years.
Conventional PMI cancels automatically once you hit 20% equity. That's a meaningful long-term savings on a Marin County property.
Strong credit score above 700 and stable W-2 income? Conventional almost always wins here. Lower insurance costs beat FHA's flexibility.
Credit below 620 or recent blemishes? FHA is likely your only path. Don't fight that — use it to get in the door.
Rates vary by borrower profile and market conditions. Run both scenarios before you decide.
Yes, but Marin County FHA loan limits apply. Verify the current limit before assuming it covers your target price.
Both can go as low as 3-3.5%. FHA requires 3.5% at 580+ credit; some conventional programs allow 3% with strong credit.
On most FHA loans today, MIP stays for the full loan term. The only way out is to refinance into a conventional loan later.
FHA is more forgiving on credit scores and debt-to-income ratios. Conventional requires stronger financials but costs less long-term.
FHA rates are often slightly lower, but the MIP cost usually offsets that. Compare total monthly payment, not just the rate.
Yes — refinancing into a conventional loan once you have 20% equity removes MIP entirely. Many Marin buyers do exactly that.