Home Purchase Loans In Kent

Are you interested in acquiring a residential property in Kent, Washington? Facilitate the realization of a home acquisition by utilizing a home purchase loan offered by Capital Home Mortgage. Our range of mortgage offerings enables prospective homeowners to select the most suitable home loan program that aligns with their financial resources and repayment capacity. 

Home Loan Programs in Kent

  The following are some of the most common ways to finance a property purchase in Kent, Washington:

• FHA Home Loans

An FHA home loan in Kent, Washington, is a mortgage loan insured by the Federal Housing Administration (FHA). This type of financing is beneficial for first-time homeowners or those with a small down payment. FHA loans are noted for their comparatively easy credit standards and the ability to finance up to 96.5% of the home’s value.

Here are some important details about FHA home loans in Kent, Washington:

• Loan Limits

The 2023 FHA loan limit in Kent, King County is $977,500 for a single-family home, $1m251,400 for a 2-unit property, $1,512,650 for a 3-unit property, and $1,879,850 for a 4-unit property, respectively.

• Qualification Requirements

In Washington, the minimum down payment required to qualify for an FHA loan is 3.5% for borrowers with credit scores of 580 and above. In addition, the debt-to-income ratio (DTI) should ideally be below 43%. The prospective buyer must occupy one of the units to purchase a multifamily property with a 3.5% down payment.

FHA loans in Kent require appraisal and mortgage insurance, which protects the lender if the borrower defaults.

• VA Home Loans

A VA home loan in Kent, Washington, is a mortgage loan primarily offered to veterans, active-duty military personnel, and some National Guard and Reserves members. VA home loans are backed by the United States Department of Veterans Affairs and are intended to provide eligible veterans and military members with affordable financing options.

VA home loans in Kent, Washington, provide eligible veterans with favorable terms, including no private mortgage insurance, low-interest rates, and flexible credit requirements. If you are a veteran or active-duty service member interested in obtaining a VA loan in Kent, it is recommended that you contact one of our Home Loan Specialists to discuss your options and receive tailored advice.

• USDA Home Loans

The United States Department of Agriculture (USDA) administers a mortgage financing program known as a USDA home loan in Kent, King County, Washington. It is a viable financing option for eligible buyers searching for affordable homeownership opportunities in rural areas. This program provides advantageous terms, such as no down payment and competitive interest rates, to make homeownership more accessible to many families.

USDA home loans are available to approximately 70.4% of King County, which includes Kent. The applicants must meet specific income requirements, be without adequate housing, and commit to occupying the financed property as their primary residence. Generally, no down payment is required. The program’s primary objective is to provide affordable homeownership opportunities that foster economic growth and improve the quality of life in rural communities.

• Conventional Loans

Conventional mortgage loans in Kent, Washington, are home loans that are neither federally insured nor guaranteed. They are the most prevalent form of home loan and are typically made available by private lenders such as banks and mortgage companies. Factors such as county median property prices can affect conventional mortgage loan amounts.

Conventional loans can either be conforming or non-conforming. The 2023 conforming loan limit for Kent, King County, Washington, is $977,500 for a single-family home, $1,251,400 for a 2-unit home, $1,512,650 for a 3-unit home, and $1,879,850 for a 4-unit home, respectively.

Conventional conforming loans typically require a 640 credit score, a debt-to-income ratio of less than 45%, and a 5% down payment. A 3% down payment is available for highly-qualified borrowers.

• Jumbo Loans

For Kent residents in King County, Washington, a jumbo loan is a type of mortgage that exceeds the FHFA’s conforming loan limit for the county in 2023, which is $977,500. Jumbo loans serve the area’s prestige and upscale real estate market.

A minimum credit score of 700 is typically required to qualify for a jumbo loan. This index measures the creditworthiness of the borrower. Usually, applicants must make a minimum 10% down payment. The standard reserve requirement for jumbo loans is six to twelve months of mortgage payments.

• Non-Qualified Mortgage Loans

A non-qualified mortgage, Non-QM, is a home loan that does not satisfy the Consumer Financial Protection Bureau (CFPB) guidelines for a Qualified Mortgage (QM). Following the 2008 financial crisis, the QM rules were implemented in the United States as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. These regulations were implemented to ensure that borrowers only received loans they could afford.

Notably, “non-qualified” does not always imply “subprime” or fundamentally risky. Non-QM loans are designed for borrowers who do not fit the standard lending mold, such as self-employed individuals with unpredictable income, real estate investors, or high debt.

Apply for a Home Purchase Loan in Kent

Capital Home Mortgage provides various benefits to Kent home purchasers. For starters, Capital Home Mortgage can assist purchasers in navigating a complex mortgage market with historically high mortgage rates to locate the best interest rates and terms, potentially saving them thousands of dollars over the life of a loan. Their personalized home purchase loan products offer pre-approval, detailed options based on specific criteria and assistance in evaluating interest rates and conditions. Capital Home Mortgage provides experienced advice and assistance to Kent home purchasers.

Call (253) 528-4417 to speak with one of our Kent Home Loan Specialists about your home purchase.