Home Loans In Edmonds, Washington

Edmonds is a city in Snohomish County, part of the Seattle metropolitan area, located 15 miles north of Seattle. It is the third most populous city in Snohomish County.

The housing market in Edmonds is very competitive, with an average median price of $815k and an average price per square footage of $443.

Home Loan Programs in Edmonds

With an average median price of $815k, plenty of home loan programs are offered in Edmonds, a conventional loan being the most prevalent. Here are the most commonly used mortgage programs in Edmonds:

• Conventional – Conforming Loans

Conventional-conforming loans are the most commonly used mortgage loan in Edmonds, Snohomish County. A conventional mortgage is a home loan not part of any government program. Private lenders offer them and can either be conforming or non-conforming.

A conforming loan is a mortgage that meets the guidelines and funding criteria of the government-sponsored enterprises Fannie Mae and Freddie Mac. They also meet the maximum loan limit set by the Federal Housing Finance Agency. They are underwritten by lenders and sold to Fannie Mae or Freddie Mac once securitized.

The minimum credit score requirement to qualify for conventional-conforming loans is 620. Depending on the borrower’s credit score, the down payment is 3 – 5% of the purchase price. They also have a strict debt-to-income ratio of 45%.

For 2023, the conforming loan limit in Snohomish County is $977,500 for a 1-unit property, $1,251,400 for a duplex, and $1,512,650 for a duplex a tri-plex, and $1,879,850 for a four-plex, respectively.

• FHA Loans

FHA home loans are mortgages insured by the Federal Housing Administration (FHA) under the umbrella of the United States Department of Housing and Urban Development (HUD). FHA loans are designed to help low- to moderate-income families attain homeownership through the mortgage insurance program. 

The Federal Housing Administration doesn’t directly extend these loans; instead, FHA-approved lenders offer them. By insuring the loan against future default, lenders may offer a more favorable term than conventional loans. They are considered the most accessible home loan program, with a minimum credit score of 580 required to qualify. The down payment requirement is 3.5% of the purchase if your scores are 580 and above. However, with scores between 500 – 579, you may still be eligible with a minimum down payment of 10% and expect some restrictions to apply.

The FHA loan limit in Snohomish County for 2023 is $977,500 for a single-family residence. If you purchase a two-unit property, the loan amount may go as high as $1,251,400. Borrowers for a three-unit property have a $1,512,650 maximum loan amount, and a four-unit property’s loan limit is $1,879,850.

• VA Loans

VA home loans are mortgages offered by private lenders and guaranteed by the US Department of Veterans Affairs. Active-duty service members, veterans, and qualified surviving spouses can finance a house with no down payment, no mortgage insurance, and lenient credit requirements with a VA loan. The VA pledges to pay a specific dollar amount to the lender on behalf of each veteran if they default on a loan. This is the reassurance lenders need to give military borrowers credit under the relatively relaxed requirements of a VA loan.

The eligibility requirements of VA loans include: (a) s minimum service requirement, (b) a valid Certificate of Eligibility (COE), © a steady work history, and (d) the ability to afford the monthly payments of the proposed housing expense.

• USDA-Guaranteed Home Loans

A USDA home loan is a no-money-down mortgage available to homebuyers in eligible rural areas. USDA loans are backed by the USDA Rural Development Guaranteed Housing Loan Program, run by the United States Department of Agriculture.

The USDA guarantees a mortgage issued by a local lender, enabling borrowers to qualify for affordable mortgage interest rates without making a down payment. While PMI is not required, borrowers must pay an upfront fee of 1% and an annual fee of 0.35% of the loan balance, which is amortized over the course of monthly installments. Typically, this is less expensive than traditional PMI.

To be eligible for a USDA-guaranteed home loan, the borrower’s household income must not exceed 115% of the area median income. Lenders typically require a credit score of 640, and borrowers must either be US citizens or lawfully-admitted resident aliens. 

• Jumbo Loans

A jumbo loan is a conventional non-forming loan that exceeds the Federal Housing Finance Agency’s (FHFA) conforming loan limits and Fannie Mae and Freddie Mac’s funding guidelines. They are primarily used to fund the purchase of a luxury home or properties with high values.

The basic eligibility requirements of jumbo loans are a high credit score, low debt-to-income ratios, and adequate reserves. Lenders typically require a credit score of 700; some lenders require a score of 720 and above. The maximum DTI ratio is 43%, and borrowers must have reserves of 6 – 12 months, at a minimum.

Apply for a Home Loan in Edmonds

Get the best home loan in Edmonds by speaking with one of our loan officers at Capital house Mortgage. We would be delighted to offer you the advice and information you require to help you buy a home with more assurance. 

To learn more about our home loan programs or get a free, no-obligation quote, contact us at (425) 324-9505.