Home Loans In Bothell, Washington

Bothell is a city in King and Snohomish Counties located near the northeast end of Lake Washington. Voted as one of the best places to live in Washington, it offers residents a dense suburban feel where most residents own their homes.

The housing market in Bothell is very competitive, with an average median price of $638k and an average price per square footage of $444. Bothell is considered one of the higher-cost areas in the state.

Home Loan Programs in Bothell

Bothell has different mortgage loan programs, a conventional-conforming loan is the most widely used by home buyers. Here’s a short list of home loans in Bothell:

• Conventional – Conforming Loan

A 30-year fixed conventional-conforming loan is Washington state’s most prevalent home loan. They are not insured nor guaranteed by the federal government. They are more challenging to qualify for compared to government-insured loans.

A minimum credit score of 620 and a debt-to-income of less than 43% are the basic qualification requirements of a conventional loan. Depending on the borrower’s credit score, a 3 – 5% down payment is required on all conventional loans. However, if you don’t put a 20% down payment, you must carry a Private Mortgage Insurance of PMI.

The conforming loan limit in King and Snohomish counties for a single-family residence in 2023 is $977,500.

• FHA Loan

FHA loans are the most lenient and easiest home loan program to qualify for. You only need a credit score of 580 to be eligible for a 3.5% down payment. Moreover, the down payment may come as a gift from a family member, a charitable institution, or an employer. If your credit score is below 580, you may still be eligible for an FHA loan, provided you come up with at least a 10$ down payment and your score is not below 500.

The 2023 FHA loan limit in King and Snohomish counties is the same as a conventional-conforming loan. They are $977,500 for a single-family residence, $1,251,400 for a 2-unit property, $1,512,650 for a 3-unit property, and $1,879,850 for a 4-unit property. 

• VA Loan

VA home loans are mortgages guaranteed by the United States Department of Veterans Affairs and exclusive to eligible service personnel and their spouses. The VA loan is a no-money-down program since the Veterans Administration guarantees a portion of the loan against default.

To be eligible for a VA home loan, you or your spouse must meet the minimum service requirements set by the US Department of Veterans Affairs, satisfy the lender’s credit and income requirements, and have a valid Certificate of Eligibility (COE).

• Jumbo Loan

Jumbo loans are mortgages that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA) and don’t meet the eligibility requirements of the government-sponsored enterprises Fannie Mae and Freddie Mac. They are mainly used to purchase luxury homes.

The eligibility requirements of a jumbo loan include a higher credit score, low debt-to-income ratios, and healthy reserves. You need a credit score of 700, and some lenders require a score of 720 and above. Your DTI should be less than 43% and have a reserve equal to 6 – 12 months of your monthly mortgage payments.

The minimum down payment for a jumbo loan is 10% of the purchase price for those highly-qualified borrowers. Depending on your credit score and DTI ratio, some lenders require a 20 – 30% down payment.

Apply for a Home Loan in Bothell

Capital Home Mortgage will assist you every step of the way. Our team of experienced mortgage professionals can answer your questions and walk you through the loan process.

To get started with a no-obligation quote, call us at (425) 324-9505. We look forward to assisting you with your next home loan in Bothell.