Home Purchase Loans In Everett

The housing market in Everett, Washington, is currently hot, with homes frequently receiving multiple offers and selling in a matter of days. The median home price in Everett is $550,000, an 11.6% drop year over year. High mortgage rates and affordability difficulties are causing a decrease in demand and competition in the state’s housing market. Experts predict that the state’s home market will stay robust thanks to low inventory and favorable interest rates.

Everett Home Purchase Loan Programs

Home buyers in Kent have various home loan programs to meet their needs and requirements. The most prevalent among them are the following:

• Conventional Loans

A conventional loan is a mortgage not guaranteed or insured by the government. Private lenders offer conventional loans, the most common type of mortgage loan.

Conventional loans can be conforming or non-conforming. Most conventional loans are also “conforming loans,” which meet lending requirements imposed by the Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac.

A conventional loan requires a minimum credit score of 620, a debt-to-income ratio of less than 45%, and a down payment of 5% of the purchase price. Conventional loans frequently have higher interest rates than FHA loans. However, conventional loans have reduced closing costs and are generally less expensive than government-backed choices.

The 2023 conforming loan limits for Everett, Snohomish County, are $977,500 for a one-unit home, $1,251,400 for a duplex, $1,512,650 for a triplex, and $1,879,859 for a four-plex, respectively.

• FHA Loans

An FHA home loan is a mortgage insured by the Federal Housing Administration. This type of financing is prevalent among first-time homebuyers since it allows them to acquire homes with a minimal down payment, typically 3.5% of the purchase price.

The eligibility requirements of an FHA loan include a minimum credit score of 850 to qualify for the 3.5% down payment advantage. However, borrowers with credit scores from 500 – 579 may still be eligible with a minimum of 10% down payment.

The 2023 FHA loan limits in Everett, Snohomish County, are $977,500 for a single-unit residence, $1,251,400 for a 2-unit property, $1,512,650 for a 3-unit property, and $1,879,859 for a 4-unit property, respectively.

• VA Loans

The U.S. Department of Veterans Affairs guarantees a VA home loan, which is a government-backed mortgage. Private lenders, such as banks, credit unions, and mortgage companies, issue VA loans.

Veterans, active-duty service members, and qualified surviving spouses can apply for VA loans. VA loans do not usually require a down payment, have lenient credit requirements, and do not require mortgage insurance. VA loans typically offer better terms and interest rates than other types of home loans.

The VA guarantees a portion of the loan, reducing the lender’s risk and encouraging them to offer favorable terms to qualified borrowers. It is essential to note that while the VA guarantees the loan, private lenders such as banks and mortgage companies do the actual lending. The VA determines eligibility for a VA loan based on factors such as military service history, discharge status, and other criteria. Borrowers are typically required to obtain a Certificate of Eligibility (COE) from the VA to demonstrate their qualification for the program.

• USDA Guaranteed Loans

A USDA home loan, also known as a USDA Rural Development Guaranteed Housing Loan Program, is a type of mortgage loan offered by the United States Department of Agriculture (USDA) to assist individuals and families with low-to-moderate incomes in purchasing homes in rural and semi-rural areas. These loans are intended to promote rural development and provide opportunities for affordable accommodation.

Typically, USDA home loans do not require a down payment. This is one of the most significant benefits. This can make homeownership more accessible to those who may not have a sizable down payment.

To qualify for a USDA home loan, both the borrower and the property must satisfy specific eligibility requirements. The property must be located in a USDA-approved rural location, and the borrower’s income must fall within certain limits for the area. These regions are generally located outside of the main urban centers.

The home being purchased with a USDA loan must be the borrower’s principal residence. These loans cannot be utilized for rental or investment properties.

• Native American Home Loans

A HUD Section 184 home loan is a mortgage program administered by the U.S. Department of Housing and Urban Development (HUD) to assist Native American and Alaska Native families in acquiring home financing. The program aims to expand homeownership opportunities for members of federally recognized tribes.

The loans may be used for home purchase, construction, rehabilitation, or refinancing. They must, however, be primary residences.

Loan applicants must either be members of a federally recognized tribe or purchase property in an area designated by HUD as an “Indian Area.” Borrowers may have non-native co-borrowers.

To qualify for a Section 184 loan, the applicant’s total monthly obligations, including the proposed mortgage loan, cannot exceed 41% of their gross monthly income. The required down payment for a HUD Section 184 home loan is 2.25 percent for loans over $50,000 and 1.25 percent for loans under $50,000.

• Jumbo Loans

In Snohomish County, Washington, a jumbo loan is a mortgage for a single-family property that exceeds the conforming loan limit of $977,500. This indicates that a jumbo loan is too enormous for Fannie Mae and Freddie Mac to purchase. Jumbo loans are also known as “nonconforming loans” because they exceed the Federal Housing Finance Agency’s (FHFA) limits for conventional loans.

The highest loan amount that government-backed companies like Fannie Mae and Freddie Mac will buy from lenders is called the conforming loan limit. Any loan over this amount is called a “jumbo loan.” Due to the higher risk of more significant loan amounts, jumbo loans often have stricter credit standards and higher interest rates than conforming loans.

In Everett, Snohomish County, Washington, a 10% minimum down payment is required for jumbo loans over $977,500.

Apply for a Home Purchase Loan in Everett

Everett, Washington, home buyers can get a lot from Capital Home Mortgage. First, Capital Home Mortgage can help buyers find the best interest rates and terms in a complicated mortgage market with historically high mortgage rates. This could save them thousands over the life of a loan. Their customized home purchase loan products include a loan pre-approval, detailed choices based on unique criteria, and help comparing interest rates and terms. Everett home buyers can get help and advice from the experts at Capital Home Mortgage.

Call (425) 324-9505 to speak with our Everett Home Loan Specialists for a home purchase loan.