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in San Rafael, CA
San Rafael buyers have two strong mortgage options if you qualify for VA benefits. Conventional loans work for any borrower with solid credit and down payment. VA loans reward military service with zero down and no monthly mortgage insurance.
The right choice depends on whether you're eligible for VA benefits and how much cash you have available. Both loans work well in Marin County's competitive market, but each has different upfront costs and monthly payments.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You need 620+ credit, and most borrowers put down 5-20%. Anything under 20% down triggers PMI, which adds $50-300 monthly until you hit 20% equity.
These loans cap at $766,550 for conforming limits in Marin County. Above that, you're in jumbo territory with stricter requirements. Rates vary by borrower profile and market conditions, but strong credit scores get the best pricing.
VA loans are available to veterans, active military, and qualifying spouses. You pay zero down and never pay monthly mortgage insurance. The upfront funding fee runs 2.15-3.3% of the loan amount, but disabled veterans get it waived.
VA loans in San Rafael cap at $766,550 with zero down. Above that, you cover 25% of the difference. The property must be your primary residence and meet VA appraisal standards, which are stricter than conventional inspections.
Down payment separates these loans most. Conventional requires 3-20% cash at closing. VA needs zero down but charges a funding fee you can roll into the loan. A $700,000 San Rafael home needs $21,000-$140,000 down conventional versus $0 down VA.
Monthly costs differ too. Conventional with 5% down carries PMI around $200-400 monthly. VA never has PMI, so your payment stays lower even with the same rate. Over time, VA saves thousands in monthly insurance costs.
If you qualify for VA benefits, use them. Zero down and no PMI beat conventional for most scenarios. The funding fee stings upfront, but monthly savings make up for it within 2-3 years. Disabled veterans avoid the fee entirely.
Choose conventional if you're buying investment property, a second home, or don't qualify for VA. Conventional also makes sense if you have 20%+ down and want to avoid the funding fee. For primary homes with under 20% down, VA wins every time for eligible borrowers.
Most VA lenders want 580+ credit, though some approve 550+. VA is more flexible than conventional, which typically requires 620 minimum.
It's a one-time fee added to your loan balance at closing. You don't pay it out of pocket unless you choose to.
Conventional typically closes in 21-30 days. VA adds 5-7 days for the required VA appraisal process.
Yes, once you hit 20% equity through payments or appreciation. You request cancellation with proof of current value.
VA requires the property to be safe and structurally sound. Sellers sometimes prefer conventional, but strong offers overcome that bias.