Question 1

Is Tiburon eligible for USDA loans?

Accepted Answer

Tiburon is not in a USDA-designated eligible area. Most of Marin County doesn't qualify due to population density and income levels.

Question 2

What credit score do I need for FHA in Tiburon?

Accepted Answer

580 gets you the 3.5% down option. You can go as low as 500 with 10% down, though fewer lenders go that low.

Question 3

Does USDA have income limits?

Accepted Answer

Yes. Household income must fall under USDA's county-level cap. Marin County's cap is higher than most, but Tiburon incomes often exceed it.

Question 4

Which loan has lower monthly costs?

Accepted Answer

USDA typically has lower ongoing fees than FHA. But that comparison only matters if you're eligible for USDA in the first place.

Question 5

Can I use FHA on any home in Tiburon?

Accepted Answer

The home must meet FHA condition standards and fall under Marin County's FHA loan limit. Your broker can confirm current limits.

Question 6

Do both loans require mortgage insurance?

Accepted Answer

Yes, both do. FHA charges upfront and monthly MIP. USDA charges an upfront guarantee fee and a small annual fee instead.

FHA vs USDA Loans in Tiburon, CA