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in Tiburon, CA
Tiburon's median home prices push well above $2 million, making government-backed loans a strategic option for eligible buyers. Both FHA and VA loans offer lower barriers to entry than conventional financing, but they serve different buyer profiles.
FHA loans work for any qualified borrower with modest savings. VA loans require military service but eliminate the down payment entirely. Your eligibility status determines which path makes sense.
FHA loans let you buy with just 3.5% down if your credit score hits 580. Lower scores down to 500 qualify with 10% down. Debt-to-income ratios stretch to 50% in most cases, giving you more buying power than conventional loans.
The trade-off is mortgage insurance on every FHA loan. You pay 1.75% upfront plus annual premiums between 0.55% and 1.05% for the loan's life in most cases. This adds $400-$800 monthly on a $900,000 Tiburon purchase, even with 20% equity.
VA loans require zero down payment for eligible veterans and active-duty service members. No monthly mortgage insurance ever, regardless of equity. Credit requirements are flexible, with most lenders approving 620+ scores and some going lower.
You pay a one-time funding fee between 1.4% and 3.6% of the loan amount, depending on down payment and prior VA loan use. First-time users with zero down pay 2.3%. Disabled veterans get the funding fee waived entirely. VA loans also cap how much you pay in closing costs.
The biggest split is eligibility. VA loans are exclusively for military members, veterans, and qualifying spouses. FHA loans accept anyone who meets income and credit standards. If you qualify for VA, you almost always save money versus FHA.
Cost structure differs dramatically. FHA charges lower upfront fees but permanent monthly insurance. VA hits you once with a funding fee, then nothing ongoing. On a $900,000 Tiburon home, FHA costs roughly $6,000 more per year than VA in insurance alone.
If you qualify for VA, use it. The math heavily favors zero down and no monthly insurance, especially in Tiburon's price range. FHA makes sense only if you don't meet VA service requirements or need even more flexible credit underwriting.
Watch Tiburon's high prices against loan limits. The 2024 FHA limit is $1,149,825 for Marin County. VA has no set limit but lenders impose their own caps, typically matching conforming highs. Many Tiburon properties exceed these thresholds, requiring jumbo financing or significant down payments.
Yes, but the condo complex must be FHA or VA approved. Many Tiburon developments aren't on approval lists, blocking government financing regardless of your qualifications.
VA loans typically price 0.25%-0.50% lower than FHA. Rates vary by borrower profile and market conditions, but VA consistently beats FHA on rate.
Both require appraisals with stricter property condition standards than conventional loans. VA inspections are more rigorous, sometimes flagging issues sellers resist fixing in competitive markets.
Yes, if you gain VA eligibility through service. VA refinances eliminate FHA mortgage insurance and often reduce your rate substantially.
Most Marin County lenders want 620+ for VA and 640+ for FHA, despite lower official minimums. Stronger credit unlocks better rates and smoother approvals.