FHA Mortgage Lender Seattle Washington
FHA Home Loans In Seattle Washginton
A Federal Housing Administration loan, also known as an FHA loan, is a mortgage insured by the federal government. It is intended to aid low-income and first-time homebuyers obtain a mortgage by providing more flexible credit requirements and typically requiring a smaller down payment than conventional loans.
Over the past decade, more than 275,000 families in Washington have utilized FHA-insured mortgages to purchase residences in Seattle, Washington. This prevalence can be attributed to its benefits, which include a maximum loan amount of $977,500 for single-family homes, the option for non-occupant co-borrowers, and a down payment requirement as low as 3.5% of the home’s purchase price.
FHA loans may be used to purchase a property with up to four living units as long as the borrower resides in one of them. FHA loans in Seattle can also be used to buy condominiums; however, the condominium project must be on the Department of Housing and Urban Development’s (HUD) “approved” list, indicating that it has been reviewed and meets all their requirements.
FHA Loan Requirements in Seattle
The following are the qualification requirements for an FHA loan in Seattle, Washington, in 2023:
Credit Score
Compared to conventional loans, FHA loans have a more lenient credit score requirement. This makes them an attractive option for borrowers with lower credit ratings than those required for conventional loans.
The amount of your down payment determines the minimum credit score required for an FHA loan. If the down payment is 3.5% of the loan amount, the needed credit score is 580. However, if you can provide a 10% down payment, you can qualify with a credit score as low as 500.
Down Payment
If you have a credit score of at least 580, the minimum down payment for an FHA loan is 3.5%. If your credit score is between 500 and 579, it is 10%.
Debt-to-Income Ratio
The FHA requires a debt-to-income ratio of less than 45%. However, the ratio could be as high as 50% with compensatory factors.
Property Requirements
A certified FHA appraiser must appraise the property you are considering. You can only qualify for a new FHA loan if the subject property is your primary residence. You must move in within sixty days of the closing date. The property must be inspected, and the inspection report must indicate whether the property meets minimum property standards.
Income and Employment
Borrowers must have a consistent source of income and proof of employment. A two-year verifiable work history is required on FHA loans.
Loan Limit
For 2023, the loan limit for FHA loans in Seattle, King County, is as follows: $977,500 for a single-family residence, $1,251,400 for a duplex, $1,512,650 for a triplex, and $1,879,850 for a four-plex, respectively.
The Federal Housing Administration insures FHA loans, making it easier for borrowers with less-than-perfect credit or a history of bankruptcy to qualify. Although being a first-time homebuyer is not required to qualify for an FHA loan, these loans are popular among first-time homeowners due to their more forgiving credit score, current debt, and low down payment requirements.
Pros and Cons of FHA Loans in Seattle
An FHA loan’s eligibility would be determined by the buyer’s unique circumstances, such as credit history, available down payment, and long-term financial goals. The following are the pros and cons of an FHA loan in Seattle:
Pros:
Flexible Qualification Requirements
FHA loans enable buyers to qualify with a lower credit score and a smaller down payment. A borrower can qualify with a credit score of 500. A 10% down payment is required for credit scores between 500 and 579. If the credit score is 580, a 3.5% down payment is required.
Lower Down Payments
FHA loans require a minimum down payment of 3.5%. This is advantageous if you have limited savings, no equity from a previous home sale, or want to keep more money in the bank.
Use of Gift Funds
Gift funds can be used for the down payment, further easing the burden of initial expenses. The gift donor may be a relative, an employer, or a charitable organization.
Availability After Adverse Credit Events
After adverse credit events, such as bankruptcy, FHA loans are made available sooner than conventional loans. For instance, the waiting period for an FHA loan after a Chapter 7 bankruptcy is two years, while it is four years for a conventional loan.
Cons:
Mandatory Mortgage Insurance
All FHA loans require mortgage insurance, which increases the cost of the loan over time. Mortgage insurance safeguards the lender in the event of borrower delinquency.
FHA Loan Limits
FHA loans have lower loan limits than conventional ones, limiting the amount of money that can be borrowed. This could be a detriment in a high-cost area such as Seattle.
Higher Overall Costs
FHA loans typically have higher overall costs due to the required initial and annual mortgage insurance premiums. The premiums can substantially increase the total cost of the loan.
Limited Flexibility
FHA loans provide less flexibility compared to conventional loans. There are specific restrictions on the nature and condition of the property that can be purchased.
Apply for an FHA Loan in Seattle
Choosing Capital Home Mortgage Seattle to obtain an FHA loan in Seattle offers homebuyers several advantages. First, FHA loans are known for their flexible eligibility requirements, which make them available to borrowers with less-than-perfect credit. Capital Home Mortgage Seattle excels at providing these loans with lenient underwriting requirements, competitive interest rates, and pricing. In addition, for first-time home buyers or those with limited funds, the low down payment requirement associated with FHA loans can be highly advantageous, and these loans are growing in popularity among Seattle millennials. Lastly, Capital Home Mortgage Seattle‘s customer-centric approach ensures a smooth and stress-free home-buying experience by providing purchasers with comprehensive guidance throughout the loan application process.
Call our Seattle FHA Loan Specialists at (253) 528-4417 for all your FHA loan questions. We are here to help.
Why Seattle HomeBuyers are Choosing Capital Home Mortgage
Close On Time
Complete Control from Application to Funding
Low Rates & Low Fees
Direct Lender with Competitive Rates & Low Fees
Exceptional Service
7 Day a Week Support Application to Final Mortgage Payment
Seattle Washington Mortgage Rates
Have you ever wondered why interests rates are what they are and what determines the final rate? Why borrowers receive different interest rates? Or why rates go up and down? Interest Rates are calculated using several factors.
- Demand for mortgage Securities
- Property securing the mortgage
- occupancy of the property
- Loan to value of the property
- Borrower’s credit worthiness
Seattle FHA Home Purchase Loans
- Simple Qualifying
- Smaller Down Payment
- Seller Paid Closing Costs
- Flexible Underwriting
- Higher Debt to Income Ratios
- Lower Credit Scores Allowed
- Manufactured Housing OK
Seattle FHA Refinance Home Loans
FHA Standard Refinance
- Appraisal Required
- 97.75% Max Loan to Value
- Closing Costs Can Be Rolled In
- 80% Max Loan to for Cash-out
- Cash-out Option Available
- County Loan Limits Apply
FHA Streamline Refinance
- FHA to FHA
- No Income Qualification
- No Appraisal Required
- Closing Costs Cannot Be Rolled In
- No Lates on Mortgage in Last Year
- Payment Must Drop on Fixed Rates
Seattle FHA Renovation Home Loans
FHA 203K is a great option for makes cosmetic changes to an older home. It allows a FHA buyer to update out of date cosmetics of a home as part of purchase or refinance. Make that old home new with a Streamline 203K renovation.
- Purchase & Refinance Options
- Primary Residences Only
- Single, Multi Family & Condo’s
- As-Is Improved Renovated Value
- 203K Streamline
- Less < 35K, Cosmetic Repairs Only
- 203K Full Rehab
- Greater > 35K, No Restrictions
Seattle Mortgage Programs
Seattle Home Purchase loans
Looking to Purchase a Seattle Home?
- Primary, 2nd Home, Investment
- Low Rates & Fees, No fee Options
- FHA, VA, USDA, Native American
- Conventional, Jumbo & Renovation
- Manufactured, Construction, Reverse
Seattle Renovation Home Loans
Looking to Rehab a Seattle Home?
- Remodel, Renovate or Repairs
- FHA 203K Streamline
- FHA Full Documentation Rehab
- Fannie Mae Homestyle Reno
- Freddie Mac Home Choice Reno
Seattle FHA Home loans
Great 1st Time Seattle Homebuyers
- Smaller Down Payments
- Flexible Underwriting Guidelines
- Higher Debt to Income Allowed
- Lower Credit Scores – Down to 500
- Down Payment Gifts Allowed
Seattle va Home Loans
100% Financing for Seattle Vets
- No Mortgage Loan Limits
- Simple Qualifying
- Higher Debt to Income Allowed
- Lower Credit Scores – Down to 500
- Manual Underwriting Allowed
Seattle Conventional Home loans
Flexibility for Seattle Homebuyers
- Primary, 2nd Home, Investment Properties
- Single and Multi-Family Properties
- Variable Mortgage Insurance Options
- Low Rates & a Variety of Mortgage Terms
- Renovation Programs Available
Seattle Jumbo Home Loans
Seattle Non-Confirming Home Loans
- Primary & 2nd Homes
- Variety of Mortgage Programs
- Simple Qualifying for Veterans
- Investor Specific Guidelines
- Credit Score Minimums
Seattle USDA Home loans
100% Rural Seattle Home Loans
- Primary Residences
- No Down Payment Required
- New Manufactured Homes Allowed
- Closing Costs / Repairs Rolled In
- Geographic and Income Limits Apply
Seattle Native american Home Loans
Seattle Hud 184 Home Loans
- Primary Residence Only
- Manual Underwriting for All Loans
- No Credit Score Requirements
- Tribal Grants Allowed
- Purchase, Refinance, and Renovation
Seattle Manufactured Home loans
Great Alternative Seattle Housing
- Existing Purchase or Refinance
- New Construction
- One Time Close Land/Home Combo
- Lock at Contract
- FHA, VA, USDA, Native American
Seattle Reverse Mortgage Loans
Your Seattle Home at Work
- Primary Residence Only
- Simple Qualifying – Equity Based
- No Credit Score Requirements
- Minimum Age 62
- Purchase, Refinance, and Cash-Out
Seattle Non QM Home loans
Making Seattle Mortgages Possible
- Purchase, Refinance & Cash-out
- Primary, Secondary, Investment Properties
- Full Doc Programs
- Alt Doc Programs
- Corporations OK
Seattle One Time Close Home Loans
Build Your Seattle Dream Home
- Primary Residences Only
- One Time Close
- Lock Rate at Closing
- Traditional Final Mortgages
- No Payments During Construction
Seattle Refinance Mortgage loans
Seattle Rate & Term Refinance
- Lower Monthly Payment
- Shorten Mortgage Term
- Streamline Options Available
- Appraisal Waivers Allowed
- VA IRRRL’s
Seattle Cashout Mortgage Loans
Seattle Equity Mortgage Loans
- Debt Consolidation
- Investment Opportunities
- Home Improvement
- Dream Vacation
- Higher Education