My novel takes place mostly in a community theatre in a medium sized town. It's the real world, and it's present day. The production is in shambles and the actor is disillusioned. He doesn't want to do this anymore.
But his friends begin to encounter mysterious, helpful strangers. He himself runs into a Greek God, with whom he has a few conversations over the course of the story. The God only appears occasionally and the mysterious strangers originate in another world, of sorts. But both the strangers and the God have only a few scenes dedicated to them. Most of the scenes and actions in the play center around fully human people doing human things of their own power. The God performs a bit of "magic" once or twice, to nudge some things along, but otherwise is more of an adviser.
It's not literary, because there is a specific plot, though it is a bit of a character piece at times.
I've been told there isn't enough of a fantasy component for it to be fantasy. Urban fantasy doesn't work, because the action is in a town, not a big urban environment. I hesitate to call it "commercial fiction" because that makes it appear more run of the mill than it is. I'm more okay with "general fiction", though that still seems like a bad fit.
"General fiction with fantasy elements" is a term that's been booted around by those who have read my draft. Also "with mythical elements", because of the Greek God thing, but he isn't playing out any of the myths of Ancient Greece, per se. He is just hanging around and chatting with one of the characters here and there.
The theme of the book, if that helps, is, in short, "honor your bliss". There are several subplots with other characters that illuminate this as well.