Home Loans In Washington

The state was founded from the western half of the Washington Territory, which the British Empire gave in 1846 as part of the Oregon Treaty in settlement of the Oregon boundary dispute. It was named after George Washington, the United States’ first president. The Pacific Ocean borders the state on the west, Oregon on the south, Idaho on the east, and the Canadian province of British Columbia on the north.  If you are considering making Washington state your permanent home — be it in the city, the suburbs, or the country — you are looking into various mortgage programs to find one that would allow you to afford the house of your dreams. Fortunately, there is a plethora of home loan programs available in Washington.

Type Of Washington Home Loans 

There are different home loan programs to finance your home purchase, a conventional-conforming loan being the most commonly used among homebuyers. However, other mortgage options for borrowers wouldn’t qualify for a conventional loan. From government-insured and guaranteed mortgage loans to Non-Conforming home loans, there is a home loan program that meets every borrower’s needs.

• Conventional-Conforming Loan

Mortgage loans not insured or guaranteed by the federal government fall under conventional loans. Conventional loans can either conform to or not conform to the standards. Mortgages classified as conforming loans adhere to guidelines established by the Federal Housing Finance Agency (FHFA), a government entity overseeing the mortgage industry. Conforming mortgages adhere to the regulations and funding standards Freddie Mac and Fannie Mae set.

Government-sponsored enterprises that dominate the home lending industry include the Federal National Mortgage Association (FNMA, or Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac). Mortgages for one-unit properties (single-family homes) must follow the standardized norms and guidelines established by these quasi-governmental organizations to qualify for the agencies’ support.

Mortgages are not issued by Fannie Mae or Freddie Mac directly. Instead, they serve as secondary market makers and insure mortgages issued by lenders like banks if those lenders decide to sell their mortgages.

• FHA Home Loan

A Federal Housing Administration (FHA) loan is a government-insured home loan granted by a bank or lender approved by the agency. They are prevalent among first-time homebuyers. FHA loans require a smaller minimum payment than many conventional loans, and applicants with low credit scores may be eligible.

Under the FHA loan program, prospective homebuyers have multiple programs they may available, from a 203(b) to a home renovation 203(k) loan that incorporates the repair and renovation cost with the purchase price of the house.

FHA loans are the most lenient and most accessible to qualify for as compared to other home loan programs. They only require a credit score of 580 to be eligible for a 3.5% down payment.

• VA Home Loan

Private lenders, such as banks and mortgage companies, offer VA home loans. The VA guarantees a portion of the loan, allowing the lender to provide better terms. The Department of Veterans Affairs (VA) offers a benefit called the home loan guarantee and other housing-related programs that can assist you in purchasing, building, repairing, maintaining, or adapting a property for your occupancy.

VA home loans offer no money down, a 0% financing. Benefits associated with a home loan are conditional on the borrower’s duty status, nature of service, and duration of service or commitment to service.

• USDA Guaranteed Home Loan

The USDA Section 502 Guaranteed Loan Program provides funding to certified lenders so that people from poor and moderate-income backgrounds in rural areas can purchase homes that meet minimum standards for “adequate, modest, decent, safe, and hygienic.” One hundred percent financing is available for qualified borrowers who want to buy, construct, renovate, improve, or relocate a primary residence located in a rural location. Eligible rural homebuyers can get 100% loans with no down payment through this scheme, which guarantees 90% of the loan amount to the lender.

• Non-Conforming Loans

A loan that does not adhere to the standards set forth by Fannie Mae and Freddie Mac for purchase is referred to as a non-conforming loan. The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) are government-sponsored organizations that invest in mortgage loans. The Federal Housing Finance Agency establishes the guidelines determining the types of mortgages Fannie Mae and Freddie Mac can purchase. There are two primary reasons why a loan might not conform: either it does not fulfill a criterion that the FHFA established, or the loan amount exceeds the loan limit set by the GSEs. A Jumbo Home Loan is a prime example of a Non-Conforming Loan.

Apply For A Home Loan With Capital Home Mortgage

Capital Home Mortgage Washington is a direct mortgage lender and servicer in Washington, offering a wide variety of mortgage options to suit the needs of its consumers. Whether you were born and raised in Washington or are a newcomer to the state, our expert team at Capital Home Mortgage Washington will endeavor to discover the loan program that best suits your needs and your budget. We are here to assist you with your housing needs, whether that be a first mortgage, a refinance, or a debt consolidation loan.

To begin the process please call our mortgage professionals at (253) 528-4417.