Home Loans In Bremerton, Washington

Bremerton is a city in Kitsap County, the largest city on the Kitsap Peninsula. It is located directly west of Seattle across Puget Sound of the peninsula.

The real estate market in Bremerton is very competitive, with an average median price of $435k and an average price per square footage of $251.

Home Loan Programs in Bremerton

Last year, the national average median price of existing homes in the US was $392k, making Bremerton homes a little above the national average but below the conforming loan limits of $726,200. That allows various home loan programs to fit the lending guidelines in Kitsap county. Here are the most used mortgage loans in Bremerton, to name a few:

• Conventional Loans

Conventional loans are mortgages not insured nor guaranteed by the federal government and offered by private lenders. Conventional loans can be either conforming or non-conforming.

Conforming loans meet the guidelines set by the government-sponsored enterprises Fannie Mae and Freddie Mac. They also meet the loan limits the Federal Housing Finance Agency sets annually. Non-conforming loans, on the other hand, are mortgages that don’t meet the guidelines of government-sponsored enterprises, therefore, cannot be sold to them.

The conforming loan limits in Kitsap County for 2023 are as follows: $726,200 for a single-family residence, $929,850 for a two-unit property, $1,123,900 for a three-unit property, and $1,396,800 for a four-unit property, respectively.

Conventional loans require a minimum credit score of 620 to qualify and a debt-to-income ratio of less than 43%.

• FHA Loans

FHA home loans are mortgages insured by the Federal Housing Administration. They are under the United States Department of Housing and Urban Development umbrella, commonly known as HUD. They insure the mortgages against future defaults, eliminating the risk from the lender. In doing so, lenders offer favorable rates and terms to the borrower.

Borrowers need a credit score of 580 to qualify for a 3.5% down payment. Those with scores from 500 – 579 may still be eligible with a minimum down payment of 10%, and certain restrictions will apply.

The FHA loan limit in Kitsap County for 2023 is $563,500 for a single-family residence. Those looking to buy a Duplex have $721,400 as the maximum loan amount. Tri-plex is $872,000, and it is $1,083,650 for a Four-plex.

• VA Loans

VA loan is a home loan program available to active-duty service members, veterans, and eligible surviving spouses. It is a no-money-down program guaranteed by the United States Department of Veterans Affairs.

To be eligible for a VA home loan, you must be an active-duty military member or veteran who meets the service requirements. You must also meet the lender’s credit and income requirements and use the property as your primary residence. You need a valid Certificate of Eligibility (COE) to show the lender that your military service meets the requirements of a VA loan.

• USDA Loans

USDA-Guaranteed Home Loans are mortgages offered to low- to moderate-income households. The United States Department of Agriculture guarantees 90% of the loan to approved lenders to reduce the risk of extending 100% financing to eligible rural homebuyers.

You must meet the income and credit requirements to be eligible for a USDA-Guaranteed Home Loan. You must make less than 115% of the area median income (AMI), must use the property as your primary residence, and the property must be located in a designated USDA rural area.

• Jumbo Loans

Jumbo home loans are non-conforming loans that exceed the loan limits set by the FHFA and, therefore, cannot be sold to Fannie Mae and Freddie Mac. These loans have higher credit score requirements than conventional loans. Borrowers are expected to have a credit score of 700; some lenders require 720 and above to be eligible for a Jumbo loan.

Your debt-to-income ratio must not exceed 43%; lenders prefer a low DTI ratio. A down payment of 10% is the minimum. Depending upon your credit score, you may be required to put 20 – 30% down. Also, you must have 6 – 12 months in reserve. Mortgage reserves are assets, like cash, that you can easily access if you need help covering your mortgage payments.

Apply for a Home Loan in Bremerton

Capital Home Mortgage is a direct mortgage lender and servicer in Washington that offers a variety of mortgage options to meet the requirements of its customers. Whether you were born and raised in Bremerton or are new to the state, our expert team at Capital Home Mortgage Washington will find the loan program that meets your needs and budget. Whether you’re a first-time homebuyer or a seasoned homeowner, we have the mortgage program and are here to assist you.

Contact us at (360) 474-5656 to begin the prequalification process for your home purchase.