Home Purchase Loans In Bremerton

The Bremerton housing market exhibits a high level of competitiveness, characterized as a Seller’s Housing Market, wherein prices tend to be elevated, and homes are sold rapidly. 

Purchase Loan Programs in Bremerton

• FHA Loans

An FHA Home Loan is a mortgage insured by the Federal Housing Administration (FHA) and issued by an FHA-approved lender in Bremerton, Washington. More than 275,000 Washington families have used FHA-insured mortgages to purchase a property over the past decade.

The FHA Home Loan program includes a modest down payment of at least 3.5% with a credit score of 580 or higher, or at least 10% if your credit score is below 580. The property must serve as your primary residence. Additionally, you must provide evidence of consistent employment and income.

The standard FHA credit requirements must be met to qualify for an FHA home loan in Bremerton, Washington. The borrower is eligible for approximately 96.5 percent financing and can include the advance mortgage insurance premium in the loan. Additionally, the creditor will be required to pay an annual premium. One- to four-unit structures qualify as eligible properties.

The 2023 FHA loan limits in Bremerton, Kitsap County, are $563,500 for a single-unit property, $721,400 for a duplex, $872,000 for a triplex, and $1,083.650 for a quadplex.

• Native American Home Loans

The Native American Home Loan program, also known as the Section 184 Indian Home Loan Guarantee Program, is administered by the Office of Loan Guarantee within HUD. The program seeks to facilitate homeownership for American Indian and Alaska Native families, tribes, villages, and housing entities. The program is available in multiple locations, including Bremerton, Washington. It features low down payments, flexible underwriting for new construction, rehabilitation, property purchases, refinancing, and fixed-rate loans for up to 30 years. In cases of foreclosure, the program also guarantees the repayment of lenders.

The program’s Eligibility requirements include being a Native American, Alaska Native, or member of a federally recognized tribe. The program is only available for single-family homes and principal residences. In addition, the borrower must purchase tribal or trust land, and eligibility is subject to tribal approval. A list of approved lenders is available online, and loan options include fixed-rate financing that does not exceed market rates for up to 30 years. Borrowers should also budget for a down payment of at least 2.25%.

• VA Loans

The VA Home Loan program in Bremerton, Washington, is designed to assist eligible veterans, active-duty service members, members of the National Guard, and certain dependents in becoming homeowners. To be eligible, individuals must meet specific requirements, such as holding a legitimate Certificate of Eligibility (COE) issued by the VA. The eligibility requirements differ based on service history, such as 90 days of active duty during wartime and 181 days of active duty during peacetime. The COE is essential for initiating the VA loan process and can be obtained via lenders, VA.gov, or the mail.

The absence of a down payment requirement, competitive interest rates, and limited closing costs are defining characteristics of the VA Home Loan program. Additionally, the program allows for no mortgage insurance payments, making it an attractive option for eligible homebuyers in Bremerton, Washington. Additionally, veterans with full VA entitlement are exempt from loan limits, and entitlement can be restored through the sale or transfer of the property. Under certain conditions, the program even allows veterans to receive multiple VA loans.

• USDA Loans

The USDA Home Loan program in Bremerton, Washington, is a mortgage program made available by the United States Department of Agriculture (USDA) to assist low-income individuals and families in acquiring rural properties. The program provides two categories of loans for rural single-family housing: the Single Family Housing Guaranteed Loan Program and the Single Family Housing Direct Home Loan.

The USDA Home Loan program includes up to 100 percent financing, eliminating the need to save thousands of dollars for a down payment. The program also provides extended loan terms, 33 years for low-income and 38 years for very low-income borrowers.

In Bremerton, Washington, eligibility requirements for the USDA-Guaranteed Home Loan program include income eligibility (cannot exceed 115% of median household income), personal occupancy as the primary residence, and being a U.S. Citizen, U.S. non-citizen national, or Qualified Alien. In addition, the property must be located in a rural area that qualifies.

• One-Time Close Construction Loans

A one-time close construction loan is a mortgage product that combines financing for the purchase of land, the construction of a home, and a permanent mortgage on the completed house into a single loan. It is also known as an FHA construction-to-permanent loan or an FHA one-time close construction loan.

One benefit of a one-time close construction loan is the convenience of only going through one underwriting process and paying for one closing, where borrowers can secure their permanent interest rate. If the interest rate decreases during construction, it can be adjusted when the construction loan is converted into a mortgage. In addition, because this type of loan is backed by the Federal Housing Administration (FHA), borrowers can take advantage of the agency’s lenient qualifications, such as easy credit qualifying scores, more flexible guidelines for homebuyers’ employment histories, small escrow reserve requirements, and debt-to-income ratios of up to 50 percent.

You must meet specific requirements to qualify for a construction loan with a single closing. These include a minimum middle-FICO score of 620 for all applicants, a maximum Loan-to-Value (LTV) of 96.5% based on the total acquisition cost of the land and home, and the property must be owner-occupied and a single-family residence. All credit documents must be at most four months from the date of the note, and income, employment, and credit reports must also be at most four months at the time of conversion to permanent financing.

• Jumbo Loans

A jumbo loan is a mortgage that exceeds the Federal Housing Finance Agency’s (FHFA) conforming loan restrictions. It’s a home loan that surpasses the conventional/conforming limit of $726,200 for 2023 in Bremerton, Kitsap County. 

Jumbo loans have several advantages over conventional loans. Among the benefits are higher loan amounts, lower interest rates, more flexible terms, flexible down payment requirements, no mortgage insurance, no maximum loan limit, and a faster approval procedure. A jumbo loan requires a credit score of 680 or higher, a maximum debt-to-income ratio of 38% to 43%, a minimum down payment of 10% to 30%, and cash reserves of 6 to 18 months of mortgage payments. You may also be required to supply extra income evidence, tax records (particularly if self-employed), and a second appraisal.

Capital Home Mortgage is a recognized lender that provides jumbo loan programs with reasonable rates, tailored counseling, and support to assist consumers in navigating the process and securing financing for high-value home acquisitions.

• Non-Qualified Mortgage Loans

Non-qualified mortgage (Non-QM) loans are mortgages that do not comply with the CFPB qualified mortgage (QM) requirements. Non-QM loans offer greater flexibility concerning borrower eligibility, income verification, and credit standards than QM loans, which adhere to stringent government and lender guidelines. These loans are designed for debtors who may not be eligible for conventional mortgages due to exceptional financial circumstances, such as self-employment or credit issues. Non-QM loans typically have higher interest rates and fees to mitigate the higher risk associated with these loans.

Non-QM loans offer flexible options for borrowers who do not meet conventional mortgage requirements but have drawbacks, such as higher costs. Borrowers interested in non-QM loans should thoroughly evaluate their financial situation and investigate various lender options to find the one that best meets their requirements.

Apply for a Bremerton Home Purchase Loan

When you’re ready to buy a house in Bremerton, Washington, Capital Home Mortgage is here to help you every step of the way with low interest rates, a wide range of mortgage programs (including FHA, USDA, VA, and jumbo loans), and friendly, local service. Getting a mortgage can be confusing, but Capital Home Mortgage makes it easier by delivering fast approvals and customizable terms based on your individual needs.

Call (360) 474-5656 to discuss your home purchase loan options with our Bremerton Home Loan Specialists.