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in Sausalito, CA
Sausalito sits in one of California's priciest counties, where choosing the right government loan matters. FHA and USDA both offer low-barrier entry, but their fit depends on property location and income.
FHA works anywhere in Marin County with just 3.5% down. USDA requires zero down but limits eligibility to specific areas and income thresholds that most Sausalito buyers exceed.
FHA loans let you buy with 580 credit and 3.5% down, insured by the Federal Housing Administration. You pay both upfront and monthly mortgage insurance, which stays for the loan's life on most purchases.
These loans cap at conforming limits in Marin County. Sellers see FHA offers as reliable since the program doesn't restrict property values the way USDA does.
USDA loans offer zero down payment for properties in eligible rural areas, backed by the Department of Agriculture. You must meet income limits based on household size and county median income.
Monthly guarantee fees run lower than FHA insurance, and the upfront fee can roll into your loan. Most of Sausalito doesn't qualify due to population density and proximity to San Francisco.
Down payment separates these programs first: FHA needs 3.5%, USDA needs nothing. But USDA restricts both location and income while FHA sets no income caps and works on any property type.
FHA mortgage insurance costs more monthly but has no geographic limits. USDA's lower fees don't help if your property sits outside eligible zones or your income exceeds county thresholds.
Most Sausalito properties don't qualify for USDA due to proximity to San Francisco and area income levels. FHA becomes the default government option unless you find one of the rare eligible parcels on Marin's rural edges.
Check USDA's eligibility map before assuming either loan works. If your property qualifies and income fits, USDA's zero down beats FHA. Otherwise, FHA's 3.5% down remains your best government-backed path.
Most of Sausalito doesn't qualify as rural under USDA maps. Check the property address on the USDA eligibility site before applying.
USDA charges less monthly than FHA. FHA's annual premium runs 0.55% versus USDA's 0.35% on most loans.
Yes, FHA sets no income caps. USDA limits household income to 115% of county median, which excludes many Marin County earners.
FHA typically closes quicker since it skips USDA's rural eligibility verification. Both take 30-45 days on average.
FHA approves condos if the complex is FHA-certified. USDA focuses on single-family homes in eligible rural areas only.