Home Purchase Loans In Bellevue Washington

The real estate market in Bellevue, Washington, exhibits a significant level of competitiveness, albeit a marginal decrease in home prices after its peak in 2022. The prices have experienced a moderate decline compared to the previous year; however, they continue to be elevated owing to Bellevue’s designation as a prominent technological center and its appealing attributes, including reputable educational institutions and a wide range of amenities.

Bellevue Home Loan Programs 

Bellevue home buyers have plenty of home loan programs to meet their needs. The most prevalent among them are the following:

• FHA Home Loans

The FHA loan program in Bellevue, Washington, offers a lending option that enables prospective homeowners to attain their objective by making a down payment of about 3.5%. These loans are insured by the Federal Housing Administration. They are commonly favored by individuals purchasing a home for the first time or seeking to refinance their existing mortgages.

FHA loans in Bellevue make homeownership accessible to individuals with lower credit scores and smaller down payments. Nevertheless, the purchaser must be aware of the requirements, such as mortgage insurance and property standards.

Applicants’ debt-to-income ratio must be below 43% to qualify, although compensating factors may assist in certain situations. The subject property must be hazard-free, move-in ready, and must be used as a primary residence. FHA loans require mortgage insurance, a cost that should be considered when comparing loan options.

The FHA loan limit in Bellevue, King County, is $977,500 for a single-unit home, $1,251.400 for a duplex, $1,512,650 for a triplex, and $1,879,850 for a four-plex, respectively. Fannie Mae and Freddie Mac’s guidelines affect how the FHA loan limits are adjusted annually and by county. 

• V.A. Home Loans

The United States Department of Veterans Affairs provides V.A. home loans, which serve as a cost-effective means of purchasing a home for members of the U.S. Military, veterans, and their families. These benefits include the absence of down payments and reduced interest rates. The loans in Bellevue, WA, are subject to certain conditions, encompassing energy efficiency and pest inspection criteria.

Although VA loans offer substantial advantages, borrowers must still meet specific eligibility criteria, such as their credit history, income, and other relevant aspects. It is important to note that these particulars may differ among lenders.

• USDA Home Loans

The USDA Home Loan program in King County, Washington, is an initiative implemented by the USDA Rural Development to assist rural residents in obtaining affordable housing. It helps approximately 70.4% of the population in King County, except in certain urban areas. The effort focuses on regions with various housing options, parks, and recreational amenities. The county exhibits a typical household income of $89,400 and a median property worth $442,400. Notably, living conditions have witnessed enhancements, as evidenced by a decline in poverty rates and unemployment.

The USDA loan program offers eligible applicants no down payment, no maximum loan amount, and fixed interest rates. The loan has income limits between $140,650 and $185,650, and the program is available for bow and existing homes. The credit criteria are also quite flexible, making it more straightforward for a wider variety of borrowers to qualify.

The prerequisites for obtaining a USDA loan encompass possessing U.S. citizenship, residing in a designated rural location that meets eligibility criteria, utilizing the property as a primary residence, and maintaining a household income that does not exceed 115% of the median income for the specific area. While there is no explicit minimum credit score requirement, it is worth noting that applications with a credit score exceeding 640 tend to undergo a more efficient and expedited processing procedure. Scores below 640 necessitate manual approval. There exist restrictions on the permissible size of dwellings that are eligible for financing, whereby residences exceeding 2,000 square feet are deemed ineligible.

• Conventional Loans

A conventional mortgage is a financing not guaranteed by the government. Private lenders, such as banks, credit unions, and other financial institutions, offer conventional mortgages. Conventional mortgages are the most prevalent type of mortgage.

Conventional mortgages are typically more advantageous for applicants with a favorable credit history and can make a substantial down payment. Conventional mortgages usually exhibit comparatively higher interest rates and require a higher credit score for eligibility than Federal Housing Administration (FHA) loans. Nevertheless, it is worth noting that conventional mortgages generally exhibit reduced closing costs compared to government-backed options.

Conventional mortgages can be classified into two distinct categories: conforming and nonconforming. Most conventional loans are commonly called “conforming loans” due to their adherence to the lending criteria established by Fannie Mae and Freddie Mac.

The 2023 conforming loan limit for Bellevue, King County, is $977,500 for a single-unit property, $1,251,400 for a duplex, $1,512,650 for a triplex, and $1,879,850 for a quadplex, respectively. 

• Non-Qualified Mortgage Loans

A non-qualified mortgage (non-QM) loan does not adhere to the criteria for a qualified mortgage. Non-qualified mortgage (Non-QM) loans employ various approaches to assess income verification, such as evaluating bank statements or considering assets as a source of income, to facilitate the approval of home loans for borrowers. Non-Qualified Mortgage (Non-QM) loans are specifically tailored to cater to borrowers with distinctive income qualifications, such as being self-employed or exhibiting a poor credit score.

Non-QM loans are not guaranteed or endorsed by the Federal Housing Administration, the Veterans Administration, Fannie Mae, or Freddie Mac. In addition, they may have unfavorable terms. Non-QM loans can be costly and risky in the short and long term.

• Jumbo Loans

In Bellevue, King County, Washington, a jumbo loan refers to a mortgage above the loan limits established by the Federal Housing Finance Agency (FHFA). For 2023, the maximum limit for Bellevue, located in King County, Washington, is $977,500. Hence, a mortgage of a single-unit residential property in Bellevue, Washington, beyond $977,500 would be categorized as a jumbo loan.

Jumbo loans are frequently employed to finance high-end houses and residences in highly competitive real estate markets, as they provide the means to get financing for properties that exceed the limits set forth by ordinary conforming mortgages. 

Due to the increased risk for the lender, obtaining a jumbo loan typically involves stringent criteria. This may include higher down payments, credit scores, and debt-to-income ratio requirements. Many lenders, for instance, require a credit score of 700 or higher, specific documentation, and a 10-30% down payment. Furthermore, rates vary between lenders, with some offering competitive options, such as mortgages with adjustable rates. Approval processes can be time-consuming, and larger loans may necessitate multiple appraisals.

Apply for a Home Purchase Loan in Bellevue

You have several options if you desire to apply for a home purchase loan in Bellevue, Washington. Capital Home Mortgage Bellevue is a direct lender of mortgages. We are dedicated to providing superior customer service and are pleased to be of assistance. 

To speak with one of our Home Loan Specialists, please dial (425) 324-9505.