Sausalito Mortgage Questions Answered by Expert Marin County Brokers

Conventional loans require 620 minimum. FHA drops to 580, but most Sausalito homes exceed FHA limits and need jumbo loans requiring 680-700.

Jumbo loans typically require 20% down for primary residences. Expect 25-30% for investment properties or homes above $2 million.

Yes. The conforming loan limit is $806,500 in Marin County for 2024, and most Sausalito properties exceed this threshold.

W-2s, pay stubs, two months bank statements, and tax returns. Self-employed borrowers need two years of returns and profit-loss statements.

Pre-approval takes 24-48 hours. Full approval averages 30 days, though jumbo loans can add 5-10 days for additional review.

Possible but difficult. Most lenders require 20-25% for waterfront due to higher insurance costs and flood zone considerations.

South Sausalito near Bridgeway, Old Town for walkability, and hillside areas like Hurricane Gulch for views. Each has different financing considerations.

Lenders scrutinize properties built before 1978 for lead paint and foundation issues on hillsides. Appraisals take longer for unique construction.

FHA allows 580 credit and 3.5% down but caps at $806,500 in Marin. Conventional requires 620 credit, offers better rates above 20% down.

15-year saves interest but doubles payments. Most Sausalito buyers choose 30-year for flexibility, especially with jumbo loan amounts.

Expect 2-3% of purchase price. On a $2 million home, that's $40,000-$60,000 including title, escrow, and lender fees.

Yes. Bank statement loans use 12-24 months of deposits instead of tax returns, ideal for business owners who write off expenses.

Private mortgage insurance costs 0.5-1.5% annually with less than 20% down. Put 20% down or use lender-paid PMI with higher rates.

Many waterfront areas require it. Costs vary from $500-$3,000 annually depending on elevation and proximity to Richardson Bay.

Debt Service Coverage Ratio loans qualify based on rental income, not personal income. Used for Sausalito investment properties and vacation rentals.

Yes. 1099 loans use income statements from clients instead of W-2s, perfect for consultants and contractors common in Marin.

Rates vary by borrower profile and market conditions. Jumbo rates typically run 0.25-0.5% higher than conforming loan rates.

Each point costs 1% of loan amount and drops rate roughly 0.25%. Makes sense if keeping the loan 5+ years.

Jumbo loans exceed $806,500 conforming limit. They require stronger credit, larger reserves, and have slightly higher rates than conventional.

Yes. Foreign national loans don't require US credit or tax returns but need 30-40% down and accept international income documentation.

Adjustable rate mortgages offer lower initial rates for 5, 7, or 10 years. Smart for buyers planning to sell before adjustment.

Lenders qualify based on 43-50% debt-to-income ratio. At $200,000 income, expect approval around $1.2-1.4 million with 20% down.

Pre-qualified is an estimate. Pre-approved means we verified income, credit, and assets—essential for competitive Sausalito offers.

Yes. Donors must provide gift letter stating no repayment expected. Jumbo loans may limit gift funds to 5-10% of down payment.

Reserves cover future payments in savings after closing. Jumbo loans require 6-12 months reserves depending on loan size and property type.

Total monthly debts divided by gross income. Conventional allows 50%, but jumbo lenders prefer 43% or lower for stronger approval.

Difficult. Most houseboats don't qualify for traditional mortgages. Specialized lenders exist but require 25-35% down and higher rates.

Short-term financing to buy before selling current home. Rates run 7-10%, useful in competitive markets when timing matters.

Usually yes for cash-out refinances. Rate-term refinances may waive appraisal if staying with current lender and sufficient equity exists.

Pay only interest for 5-10 years, then principal kicks in. Works for high earners expecting income growth or short-term ownership.

You can deduct interest on loans up to $750,000. Consult your tax advisor about Marin County property tax deductions too.

You'll need to increase down payment, renegotiate price, or cancel the deal. Low appraisals happen with unique Sausalito properties.

Lock if you like the rate and closing within 45 days. Float if rates are dropping, but you risk increases.

We shop 200+ lenders for your best rate and program. Banks offer only their products, limiting options for unique Sausalito properties.

Rarely. Assumable loans are mostly VA or FHA, uncommon in Sausalito's price range. You'd still need lender approval and qualify.

ARMs held by lenders instead of sold to Fannie Mae. More flexible underwriting for non-traditional income, common with Marin professionals.

Yes, lenders require it. Owner's policy is optional but recommended given complex title history on older Marin County properties.

Larger down payments reduce risk and improve rates. Dropping from 25% to 20% down can add 0.125-0.25% to jumbo rates.

Yes, but expect 10% minimum down and higher rates than primary residence. Lenders verify it's not an investment property.

Qualifies you based on liquid assets divided by loan term. Perfect for retirees with investment portfolios buying in Sausalito.