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in Sausalito, CA
Both FHA and VA loans offer low-barrier entry into homeownership with government backing. The key difference: VA loans require military service, while FHA serves anyone who qualifies.
Sausalito's tight inventory and premium pricing make these programs valuable for buyers who lack 20% down. Understanding which one you qualify for—and which saves you more money—shapes your entire buying strategy.
FHA loans allow just 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75%, then monthly MI for the life of most loans.
Anyone can apply regardless of military status. The tradeoff: you pay for that accessibility through higher insurance costs that never drop off on purchases with less than 10% down.
Marin County loan limits hit $1,149,825 for single-family homes in 2024. That ceiling matters in Sausalito where even modest homes often exceed $1 million.
VA loans require zero down for eligible veterans and service members. No mortgage insurance exists—just a one-time funding fee that ranges from 1.4% to 3.6% depending on your service and down payment.
The funding fee can roll into your loan amount. Many disabled veterans pay nothing at all—no funding fee, no down payment, no monthly insurance.
Marin County VA limits match FHA at $1,149,825 for standard loans. Veterans buying above that can still use VA financing but need 25% down on the amount over the limit.
The biggest split: VA loans eliminate monthly mortgage insurance while FHA charges it forever on 3.5% down loans. On a $900,000 Sausalito home, that's roughly $600 per month in FHA MI versus $0 for VA.
Upfront costs also differ. FHA's 1.75% MIP on $900K equals $15,750. VA's typical 2.3% funding fee for first-time zero-down use hits $20,700—but again, no monthly charges follow.
Credit flexibility favors FHA slightly. We see VA lenders require 620+ scores in practice, while FHA formally accepts 580. But veterans with strong profiles often get better rates through VA despite identical credit.
If you qualify for VA, use it. The lack of monthly MI and zero-down option beat FHA in nearly every scenario for Sausalito buyers facing seven-figure prices.
FHA makes sense when you don't have military eligibility or you're buying a multi-unit property VA won't cover. It also works for buyers rebuilding credit below 620 who can't access VA yet.
Run the numbers on your specific property. A veteran buying a $1.2 million home would need $50,000 down on the excess $50K if using VA—versus putting just $42,000 down with FHA but paying MI forever.
Both cap at $1,149,825 in Marin County. Above that limit, VA requires 25% down on the excess while FHA won't work at all.
VA typically prices 0.125% to 0.25% lower than FHA. Rates vary by borrower profile and market conditions.
Both require homes to meet safety standards. VA appraisals sometimes flag issues FHA misses, but neither is significantly harder.
Yes, many veterans start with FHA then do a VA cash-out or rate-term refinance. You'll eliminate that monthly MI permanently.
Cash and conventional still win in competitive markets. Between FHA and VA, sellers view them equally—both are government-backed and reliable.