San Rafael Mortgage FAQs: What Marin County Homebuyers Need to Know

FHA loans allow 580, but most Marin sellers prefer conventional buyers with 700+. Higher scores unlock better jumbo rates for San Rafael's price points.

Probably. Most single-family homes exceed the conforming limit of $806,500. Jumbo loans require 20% down and stronger credit.

Conventional loans start at 3%, but 20% avoids PMI and wins offers. Jumbo loans typically require 20-25% minimum.

Yes. Bank statement loans use 12-24 months of deposits instead of tax returns. We close these for contractors, business owners, and 1099 earners weekly.

W-2 buyers need pay stubs, tax returns, and bank statements. Self-employed borrowers need business bank statements or P&L statements depending on loan type.

Standard purchase loans close in 21-30 days. Cash-out refinances take 30-45 days due to appraisal timelines in Marin.

FHA allows 580 credit and 3.5% down but charges lifetime mortgage insurance. Conventional needs 620 credit, drops PMI at 20% equity, and sellers prefer them.

15-year mortgages have lower rates but double your payment. Most San Rafael buyers pick 30-year for flexibility, then prepay when able.

Expect 2-3% of purchase price: lender fees, title insurance, escrow, property taxes, and transfer taxes. Jumbo loans often have lower percentage fees.

Some lenders offer piggyback loans: 10% down, 80% first mortgage, 10% second mortgage. You pay higher rates on the second but skip PMI.

Yes. Lenders require proof of coverage before funding. Get quotes early—Marin rates vary widely by fire zone and rebuild costs.

DSCR loans qualify investors using rental income, not personal income. Perfect for buying San Rafael income property when you don't want tax returns reviewed.

Yes. Bank statement loans work for primary homes, second homes, and investment properties. We use them for self-employed buyers buying in San Rafael weekly.

Most jumbo lenders want 700+ with 20% down. Some allow 680 with 25% down and strong reserves.

ARMs offer lower initial rates for 5, 7, or 10 years, then adjust annually. Good for San Rafael buyers planning to move or refinance before adjustment.

Lenders divide liquid assets by 360 months to calculate income. Retirees with investment accounts but low tax returns use these for San Rafael purchases.

Yes. Foreign national loans require 30-40% down and don't need U.S. credit or income documentation. We close these for international buyers regularly.

Pre-qualified means nothing—it's based on what you told a lender. Pre-approved means underwriting reviewed your documents and issued conditional approval.

Each point costs 1% of loan amount and drops your rate about 0.25%. Makes sense if you're keeping the loan 5+ years in San Rafael.

DTI is your monthly debts divided by gross income. Most conventional loans cap at 50%, FHA allows 56.99% with compensating factors.

Yes. FHA 203k and conventional renovation loans fund purchase plus repairs in one loan. Hard money works if you're flipping fast.

Bridge loans let you buy before selling your current home. Rates run 7-9% but solve timing problems in competitive San Rafael markets.

Yes. You'll prepay 2-12 months into an escrow account depending on closing date. Marin County taxes run 1.1-1.25% of purchase price annually.

Rate locks freeze your interest rate for 30-60 days while you close. Lock when you're in contract and rates meet your budget.

Yes. ITIN loans work for San Rafael buyers without SSNs. Expect 15-20% down and slightly higher rates than conventional loans.

Interest rate is what you pay on the loan balance. APR includes fees and closing costs—it's the true cost of borrowing.

Lenders approve up to 50% debt-to-income ratio. Budget for property taxes, insurance, and HOA fees—they add $1,500-2,500 monthly in Marin.

You can pay the difference in cash, renegotiate price, or cancel. Low appraisals are rare in San Rafael's tight market but happen.

HELOCs give you access to equity for renovations or emergencies. Rates are variable but cheaper than credit cards or personal loans.

Yes. Conventional loans allow gifts from family with a signed letter. FHA requires the donor to prove funds came from their own accounts.

Portfolio ARMs are held by the lender, not sold. They offer flexible terms for high-net-worth San Rafael buyers with complex income.

No, but agents help negotiate and manage timelines. We coordinate with your agent to ensure smooth San Rafael closings.

Community mortgages help first-time buyers with lower rates or down payment assistance. Eligibility varies—ask what programs apply to Marin County.

Most lenders require 6-12 months of payment history. Rate-and-term refinances have shorter waits than cash-out refinances.

DSCR loans let you qualify on rental income alone. No tax returns, no W-2s—just property cash flow and 20-25% down.

Compare offers from three brokers or lenders. We shop 200+ lenders to find the lowest rate for your exact borrower profile.

Homeowners 62+ can convert equity to cash without monthly payments. You repay when you sell or pass away—popular for Marin retirees.

Yes. Request cancellation once you hit 20% equity through payments or appreciation. Lenders must auto-cancel at 22% by law.

Brokers access 200+ lenders instead of one bank's products. We find loan programs that match self-employed income, jumbo needs, and investment properties.

Marin County reassesses at purchase price. Your tax bill reflects the new value plus voter-approved bonds—expect 1.1-1.25% annually.