Federal Way Home Loans

Federal Way is the fifth-largest city in King County and the tenth-largest in the state of Washington. Just like the city of Kirkland, the real estate market in Federal Way is very competitive. The average median price of homes is $515,000 and sells in around 34.5 days.

Home Loan Programs in Federal Way

Are you considering purchasing a house in Federal Way, Washington? You’re in luck because several purchase loan programs are available from first-time buyers to seasoned homeowners. The following loan programs are the most prevalent mortgage loans in Federal Way:

• FHA Home Loans

FHA loans are government-backed mortgages insured by the Federal Housing Administration (FHA) and issued by banks or approved-FHA lenders. You may qualify for an FHA loan even with a low credit score or previous bankruptcy.  

The FHA loan limits for King County are $776,250 for a single-family home, $993,750 for a duplex, $1,201,200 for a triplex, and $1,492,800 for a quadplex (Fourplex).

• VA Home Loans

The primary objective of the VA home loan program is to assist veterans in financing the purchase of a home with reasonable loan terms and an interest rate that is often lower than that of other types of mortgage loans. The term “veteran” includes some members of the Selected Reserve, active duty service personnel, and specific categories of spouses for VA home loans. 

Private lenders such as banks, savings and loan institutions, and mortgage companies issue VA-guaranteed loans. The guarantee protects the lender from a loss if you or a subsequent owner fail to repay the loan.

VA loans provide several advantages that make them an appealing financing choice, including:

• No down payment program;
• No mortgage insurance;
• Competitive interest rates;
• Housing grants are available for veterans with a disability.

• USDA Home Loans

The most frequent USDA loan arrangement involves the USDA guaranteeing a mortgage offered by a private lender. This form of loan provides for low- and no-money-down financing, which can benefit rural buyers who may have a different degree of funds than their urban counterparts.

A portion of King County qualifies for a USDA Rural Development mortgage. USDA loans assist low- and very-low-income borrowers in acquiring secure and clean dwellings in qualifying rural areas. The prospective residence must be located in a USDA-approved rural area. The future homeowner must also meet USDA-established income requirements.

• Conventional Loans

A conventional loan is a mortgage loan granted by a private lender, such as a bank or credit union, and is not insured or guaranteed by the federal government. Conforming loans adhere to the restrictions imposed by Freddie Mac and Fannie Mae, whereas non-conforming loans do not. When measured by market share, conventional loans are the most popular type of mortgage among borrowers in Washington State.

For 2023, the maximum conventional loan amount for a single-family property in King County is $776,250, $993,750 for two units, $1,201,200 for three units, and $1,492,800 for four units.

• Jumbo Loans

Jumbo loans in Federal Way, Washington, are home loans that surpass the Federal Housing Finance Agency’s (FHFA) conforming loan limits. In Federal Way, the conforming loan ceiling for a single-family home is $776,250. Jumbo loans, which the government does not back, are generally used to purchase high-valued residences. Borrowers must meet strict conditions to qualify for one.

Borrowers typically require a credit score of at least 700 and a low debt-to-income ratio to qualify for a jumbo loan. Depending on the lender, the exact requirements will differ; however, borrowers may be required to present additional evidence to show their income and assets. Borrowers may also be required to make a larger down payment to qualify for a jumbo loan. Borrowers may need a 10 – 20% down payment on a single-family home worth up to $2 million.

Apply for a Home Loan in Federal Way

Capital Home Mortgage is a direct mortgage lender serving Federal Way, Washington, and the neighboring communities. From application to closing, we handle the entire loan procedure. We can give quick approvals and maintain closings on time. 

Capital Home Mortgage provides a wide range of mortgage products, including FHA, Jumbo, Conventional, and Non-qualified mortgages. Contact our Home Loan Experts at (253) 528-4417; we look forward to offering your Federal Way Home Loan.