Benefits of a Washington FHA Home Loan
Washington FHA Purchase Loan
- Simple Qualifying
- Small Down Payment
- Seller Paid Closing Costs to 6%
- Flexible Underwriting
- Higher Debt to Income Ratios Allowed
- Lower Credit Scores Allowed
- 580 with 3.5% Down Payment
- 500 with 10% Down Payment
- Manufactured Housing OK (Subject to Restrictions)
Washington FHA Refinance Loan
- Streamline Option – Rate and Term Only
- No Appraisal / No Income Verification Required
- Full Documentation
- Rate and Term / Cash-out Options
- Closing Costs Can be Rolled In
Washington FHA 203K Rehab
- Streamline 203K – allows for up to 35K of improvements to be financed into the loan. This can be combined with a purchase or with a fully documented refinance. The improvements are typically cosmetic, but can be limited structural as long as the improvements are not for an addition.
- Full 203K doesn’t have a maximum for improvements, however the loan does have to stay within county specific loan limits. The full rehab can be used for any improvements to the home itself including an addition. Full 203K loans require the use of an approved HUD consultant.
What is a Washington FHA Home Mortgage Loan?
Washington FHA Home Loans are mortgage loans for 1st time home buyers, buyers with limited credit, or buyers with less than perfect credit. The FHA underwriting guidelines are less strict than other loans making the barrier to homeownership less challenging. FHA stands for “Federal Housing Administration” which is part of HUD ”Housing and Urban Development”.
Established in 1934 and prompted by the great depression FHA had one goal: to make homeownership affordable. A great step in our nation’s history as the majority of Americans were renters, not having large down payments that traditional banks required.
It is important to understand that FHA doesn’t lend money. FHA instead provides lenders a guarantee that covers the lenders from loss in the event of a foreclosure. It simple terms FHA insures the portion of the loan that a buyer would have would normally had to put down to qualify for a traditional loan, allowing for small down payments to purchase. All FHA loans require mortgage insurance. The mortgage insurance comes in an upfront fee, which can be financed into the loan and a monthly fee made through the mortgage payment. These installments from the payments support the guarantee fund and makes FHA loans possible. This fee is fixed for the term of the loan and is the same regardless of credit.
Not sure if a FHA Home Loan is right for you? Call today to speak to a licensed loan officer. 800.804.8151