Home Loans In Burien Washington

Burien is a suburban city in King County, located south of Seattle. Recently listed as the third most walkable city in Washington state, the city has six miles of shoreline and expansive mountain views.

Burien is a diverse community; housing ranges from starter homes to high-end homes, condominiums, and apartments, including senior living. The real estate market in Burien is very competitive, with an average median price of $614k and an average price per square foot of $389.

Home Loan Programs in Burien

Several mortgage loan programs are available in Burien, a conventional-conforming loan being the most prevalent, followed closely by FHA loans. Here’s a short list of home loan programs in Burien:

• Conventional Loans

A 30-year fixed conventional-conforming loan is Burien’s most commonly used loan program. Borrowers preferred this type of loan due to its predictability and affordability. Since the conforming loan limit in King County is $977,500 for a single-family residence, most properties in the market fall within this guideline.

Conventional loans are mortgages not secured by the federal government. The lender assumes all risk in extending the loan in the event of foreclosure. Because the lender takes all the risk, they require a higher credit score than government-insured loans. The minimum credit score needed to qualify for a conventional loan is 620. They also require a debt-to-income (DTI) ratio of less than 43% to be eligible for financing.

• FHA Loans

The Federal Housing Administration insures FHA loans under the jurisdiction of the United States Department of Housing and Urban Development (HUD). The federal government insures the loan against default. In the event of foreclosure, the lender doesn’t take a risk. This allows lenders to offer favorable terms to borrowers.

FHA loans are the most lenient mortgage program available. A credit score of 580 is required to qualify for a 3.5% down payment. However, borrowers with scores below 580 down to 500 may still be eligible with a 10% minimum down payment, and certain restrictions will apply.

FHA loans allow a higher debt-to-income ratio compared to conventional loans. Borrowers may have a 55% DTI ratio with compensating factors.

The FHA loan limit for King County is $977,500 for a one-unit property, $1,251,400 for a duplex, $1,512,650 for a tri-plex, and $1,879,850 for a four-plex, respectively.

• VA Loans

A VA loan is a no-money-down, no mortgage insurance home loan program available to active-duty service members, veterans, and eligible surviving spouses. The US Department of Veterans Affairs guarantees the loan and has relaxed qualification requirements than conventional loans.

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

• Jumbo Loans

A jumbo loan is a conventional non-conforming loan that exceeds the maximum loan limit set by the Federal Housing Finance Agency (FHFA). They are used to finance properties that are too big and expensive for a conventional-conforming loan.

You will need a higher credit score than conventional-conforming loans to qualify for a jumbo loan. A credit score of 700 is typically required to qualify, and some lenders require a higher credit score of 720 and above.

Lenders prefer a DTI ratio of less than 43% and cash reserves of 6 – 12 months of mortgage payments.

Apply for a Home Loan in Burien

Your path to homeownership starts with a phone call to one of our loan specialists. Not only will we assist you in obtaining the home loan you need, but we will also provide any necessary guidance throughout the whole process.

Contact us at (206) 590-2280 to start your path to homeownership!