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in San Anselmo, CA
San Anselmo buyers face Marin County price tags without the coastal premiums. Both FHA and VA loans offer low down payments, but eligibility and costs differ sharply.
FHA works for any qualified borrower. VA requires military service but delivers unmatched terms for those who qualify.
FHA loans require just 3.5% down with credit scores as low as 580. You'll pay upfront mortgage insurance (1.75% of loan amount) plus monthly premiums that typically run 0.55% to 1.05% annually.
Lenders cap your debt-to-income ratio at 50% in most cases. FHA works well for first-time buyers or anyone rebuilding credit after financial setbacks.
Rates usually sit 0.25% to 0.50% below conventional loans. The trade-off: mortgage insurance stays for the loan's life on most purchases, adding $200-$400 monthly on a $750,000 loan.
VA loans require zero down payment for eligible veterans and active-duty service members. No monthly mortgage insurance exists—just a one-time funding fee (2.3% for first-time zero-down users, waived for disabled veterans).
Lenders allow higher debt ratios than FHA, often accepting 55% or more with strong residual income. Credit requirements flex down to 580 at most lenders we work with.
Sellers can pay all your closing costs, and VA appraisals include stricter property condition requirements than FHA. Rates typically match or beat FHA pricing.
Eligibility separates these programs completely. VA requires military service documentation—active duty, veteran status, or qualifying surviving spouse. FHA accepts any borrower who meets credit and income standards.
Monthly costs diverge after closing. FHA charges ongoing mortgage insurance that adds $2,400-$4,800 yearly on typical San Anselmo purchases. VA has zero monthly insurance after you pay the upfront funding fee.
Down payment rules favor VA heavily. Zero down beats 3.5% down when Marin County medians push $900,000-plus. That's $31,500 you keep in the bank with VA versus FHA.
If you're eligible for VA, use it. The zero down payment and no monthly mortgage insurance beat FHA economics on every timeline. You'll save $300-$500 monthly compared to FHA on a $750,000 loan.
FHA makes sense when VA isn't available and you lack the 5%-20% conventional lenders want. It bridges the gap between rental pricing and homeownership in Marin's expensive market.
Both programs have identical conforming loan limits in Marin County. For purchases above those caps, you'll need a jumbo product or creative financing strategies we can structure.
Both programs share Marin County's conforming loan limit. Above that threshold, you'll need jumbo financing or supplemental options we can layer.
VA appraisals enforce tighter standards than FHA. Older San Anselmo homes sometimes need repairs before VA approval that FHA would overlook.
Only if you put down 10% or more—then it drops after 11 years. Most FHA buyers use 3.5% down and carry insurance permanently.
Yes, but it rarely makes financial sense. VA's zero down and no monthly insurance beat FHA economics in nearly every scenario.
Both officially go to 580, but VA lenders show more flexibility below 620. We see more sub-600 approvals through VA than FHA.