What are the ramifications of using real life town in a novel?

Your problem is not with using the town's name and layout many authors place their stories in real locations. The bigger concern is that someone actually living in the community will believe that a character or situation in your book is defamatory to that person, that it harms his or her reputation, or is out-and-out false. Brush up on defamation laws before making a decision, especially if you're dealing with a small community.

That all sounds fine. A novel is fiction. You can set it in a real town. You should seek out legal advice if you plan to write about any real people or real businesses, particularly if you plan to use their real names. If so, get legal advice early on to avoid big trouble later.