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in Tiburon, CA
Tiburon sits in one of California's highest-cost markets. That makes USDA loans nearly impossible here — the city doesn't qualify as rural, and most properties exceed USDA price limits.
FHA loans work in Tiburon, but even they hit limits fast. The county loan ceiling is $1,149,825 for single-family homes in 2024. Most Tiburon properties sail past that number.
FHA loans require just 3.5% down with a 580 credit score. They allow higher debt-to-income ratios than conventional loans, which helps buyers stretch their budget.
You'll pay mortgage insurance for the life of the loan with FHA — both upfront (1.75%) and monthly premiums. Rates vary by borrower profile and market conditions, but FHA often beats conventional rates for buyers with lower credit scores.
USDA loans offer zero down payment for eligible rural and suburban areas. They also charge no monthly mortgage insurance — just a 1% upfront guarantee fee and an annual fee of 0.35%.
The catch: strict income limits and property location requirements. Properties must be in USDA-designated rural zones, and household income can't exceed 115% of area median income.
Location makes the biggest difference. USDA designates Tiburon as ineligible — it's too urban and too expensive. FHA works anywhere in Marin County, as long as the property stays under $1,149,825.
Down payment is the other major split. FHA requires 3.5% down while USDA allows zero. But USDA's income limits often disqualify Marin County buyers who could otherwise afford the home.
For Tiburon specifically, FHA is your only government option between these two. USDA doesn't designate any part of the city as eligible. Even FHA struggles here — most homes exceed the loan limit.
Buyers shopping under $1.15 million should compare FHA against conventional loans instead. That's the real choice in Tiburon. Properties above that threshold need jumbo financing, which neither program offers.
No. Tiburon doesn't qualify as a USDA-eligible rural area. The entire city falls outside USDA designation zones.
$1,149,825 for single-family homes in 2024. Most Tiburon properties exceed this ceiling and require jumbo financing instead.
USDA charges less — 0.35% annually versus FHA's 0.55%-0.85%. But location eligibility overrides this benefit in Tiburon.
FHA approves condos if the complex is FHA-approved. USDA focuses on single-family homes and doesn't typically finance condos.
No. Both FHA and USDA require mortgage insurance regardless of down payment size. Conventional loans drop it at 20% equity.