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in San Rafael, CA
San Rafael sits in one of California's priciest counties. The loan you pick here has real consequences for your rate, monthly payment, and long-term costs.
Conventional and FHA loans both work in Marin County. But they serve very different borrower profiles. Knowing which fits you can save thousands.
Conventional loans aren't government-backed. Lenders set terms based on your credit, income, and down payment. Strong borrowers get the best rates.
Put down 20% and you skip private mortgage insurance entirely. That's a meaningful monthly savings on a high-value San Rafael property.
Conforming loan limits in Marin County are among the highest in the state. Conventional financing covers most purchases here without going jumbo.
FHA loans are insured by the federal government. That backing lets lenders approve borrowers with lower credit scores and smaller down payments.
You can qualify with a 580 credit score and just 3.5% down. At 500–579, you still qualify — but lenders require 10% down.
Every FHA loan carries mortgage insurance. You pay an upfront premium at closing plus a monthly premium for the life of the loan in most cases.
The biggest split is mortgage insurance. FHA charges it no matter what. Conventional drops PMI once you hit 20% equity.
HousingWire flagged the 30-year fixed hitting 6.57% recently, with applications falling sharply. At those rates, MIP adds real weight to an FHA payment. Rates vary by borrower profile and market conditions.
FHA loan limits cap what you can borrow. Conventional conforming limits in Marin County run higher — that matters on a typical San Rafael purchase price.
Go conventional if your credit is 700+ and you can put down 10–20%. You'll get a better rate and avoid permanent mortgage insurance.
FHA makes sense if your credit is in the 580–640 range or your down payment is limited. The easier qualification is the trade-off for higher insurance costs.
In San Rafael, most buyers who can qualify conventional should. The long-term MIP on FHA adds up fast on a six-figure loan balance.
Yes, but FHA loan limits apply. Marin County has higher limits than most of California, but confirm the cap covers your target price.
Conventional is usually lower for borrowers with good credit. FHA's required MIP adds to your monthly cost regardless of down payment size.
Lenders remove PMI once you reach 20% equity. You can request cancellation — it doesn't always drop off automatically.
Not if you put less than 10% down. With 10% or more down, MIP cancels after 11 years.
Most lenders require 620 minimum. But to get competitive rates in Marin's price range, aim for 700 or higher.
Conventional loans allow investment properties. FHA loans require owner occupancy — you must live in the home you're buying.