Home Loans in Bellingham, Washington

Bellingham is a seaside community close to the Canadian border in Whatcom County, Washington State. It is the final major city before the coast of Washington meets the Canadian border. The real estate market in Bellingham is very competitive, with an average median price of $460,000, and it sells within 83 days on the market. 

Mortgage Programs in Bellingham

There are various mortgage options when looking to buy a property in Bellingham. From conventional-conforming to government-insured and guaranteed loans, there is a home loan program for every borrower. Here are some to name a few:

• Conventional – Conforming Loans

A conventional mortgage is any loan not backed, insured, or guaranteed by the federal government, such as FHA, VA, or USDA home loans. Private lenders, banks, or mortgage companies offer them. Conventional loans can either be conforming or non-conforming.

A conforming loan meets the terms and conditions set forth by the Government Sponsored Enterprises (GSE) Fannie Mae and Freddie Mac. They adhere to the loan limits the Federal Housing Finance Agency (FHFA) set. A credit score of 620 is required to qualify for a conventional-conforming loan.

A non-conforming loan, on the other hand, is a conventional loan that does not comply with Fannie Mae or Freddie Mac’s criteria, typically because the loan amount exceeds the preset limitations or the borrower or property does not meet other requirements.

• FHA Home Loan

FHA loans are mortgages insured by the Federal Housing Administration, an arm of the US Department of Housing and Urban Development, commonly known as HUD. The Federal Housing Administration nor HUD directly extends this loan. Instead, they are offered by FHA-approved lenders.

FHA-insured loans are the most lenient home loan program. They require a 580 credit score to qualify for a 3.5% down payment. The money may be a gift from a family member, employer, or charitable institution. 

The maximum loan limit for a single-family unit is $603,750. If you plan to get a duplex, the maximum loan limit increases to $772,900.

• VA Home Loan

A VA home loan is a mortgage offered by private lenders, banks, or mortgage companies and guaranteed by the US Department of Veterans Affairs. The VA guarantees a portion of the loan, allowing the lender to offer better terms to qualified veterans, active-duty service members, and spouses.

To be eligible for a VA home loan, you must first get a Certificate of Eligibility (COE), which proves to your lender that you have the requisite service history and duty requirements. You may obtain a COE through the VA website, the mail, or through your lender. To secure financing, you must also meet your lender’s credit and income lending standards along with the COE.

• USDA Home Loan

In Whatcom County, Washington, a USDA home loan is a mortgage program that assists low- and very-low-income applicants in obtaining housing in qualifying rural areas. A minimum credit score of 640, property location and condition, and satisfying household income criteria are all required for eligibility. USDA loans have no predetermined maximum loan limit; local limits are based on the area’s maximum income limit and the applicant’s debt-to-income ratio.

• Jumbo Loans

Jumbo loans are mortgage loans higher than the conforming loan limits established by the government-sponsored enterprises Fannie Mae and Freddie Mac. Because these loans are more extensive and riskier for lenders, they typically have more challenging qualifying requirements and higher interest rates.

Borrowers must meet standards such as a high credit score of at least 700, a low DTI ratio, adequate cash reserves, and a substantial down payment to qualify for a jumbo loan.

Apply for a Home Loan with Capital Home Mortgage

Capital Home Mortgage is a direct mortgage lender that provides a full suite of mortgage-related services. We have a home loan program suited for your needs if you are in the market for a home in Bellingham.

Call us at (253) 528-4417 to speak with one of our Home Loan Specialists; we look forward to serving you.