Home Purchase Loans In Kirkland

Prospective Kirkland home buyers should be prepared to enter a competitive market where homes sell quickly and frequently at or near their prices. Kirkland housing is 212% more costly than the national average. This could be owing to the area’s availability of luxury residences and waterfront properties.

Kirkland Purchase Loan Programs

Here are some of the mortgage loan options in Kirkland, Washington:

• Conventional Loans

Conventional loans are mortgage loans not insured or backed by a government body like the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). Private lenders, like banks, credit unions, and mortgage companies, are the ones who give out conventional loans. Fannie Mae and Freddie Mac, government-backed enterprises that buy and back standard mortgages on the secondary market, set the rules for these loans.

Conventional loans may either be conforming or non-conforming. 

• • • Conforming Loans

A conforming loan is a conventional loan that adheres to the guidelines established by Fannie Mae and Freddie Mac, the two largest mortgage buyers in the United States. After closing, a conforming loan can be sold to either Fannie Mae or Freddie Mac.

The 2023 conforming loan limits for Kirkland, King County, are $977,500 for a single-unit home, $1,251,400 for a duplex, $1,512,650 for a triplex, and $1,879,850 for a four-plex.

• • • Non-Conforming Loans

A non-conforming loan is a mortgage that is not guaranteed in part by a government agency or department. Non-conforming loans do not adhere to Fannie Mae and Freddie Mac’s guidelines, so they cannot be sold to these agencies. 

• FHA Loans

The Federal Housing Administration (FHA), a United States Department of Housing and Urban Development (HUD) division, insures FHA loans. These loans are intended to assist individuals with low credit scores and non-traditional down payments in acquiring a mortgage. FHA loans are popular because their eligibility requirements are less stringent than conventional loans. 

The eligibility requirements for an FHA loan include the following: a credit score of 580 and up to qualify for the 3.5% down payment advantage, a debt-to-income ratio of less than 45%, a two-year employment and residence history, and the ability to provide income and asset documentation.

The 2023 FHA loan limits in Kirkland, King County, are $977,500 for a one-family property, $1,251,400 for a two-family property, $1,512,650 for a three-family property, and $1,879,850 for a four-family property.

• VA Loans

A VA home loan is a mortgage loan program administered by the United States Department of Veterans Affairs (VA) to assist qualifying veterans, active-duty service members, and National Guard and Reserves members in purchasing or refinancing a house. The VA home loan program aims to give veterans advantageous terms and assistance.

The eligibility requirements for a VA home loan include proof of military service using the Certificate of Eligibility (COE), an honorable discharge, and satisfactory credit history. They must occupy the property as a primary residence.

• Jumbo Loans

Jumbo loans are mortgages that exceed the conforming loan limits of any given area. Kirkland’s 2023 conforming loan limit for a single-family unit is $977,500. A loan amount that exceeds $977,500 is considered a jumbo mortgage.

Since they are ineligible for purchase by Fannie Mae and Freddie Mac, jumbo loans are frequently viewed as a higher risk by lenders, who may impose stricter eligibility requirements and higher interest rates.

The eligibility requirements for a jumbo loan in Kirkland include a high credit score of 700 and up, a 10% down payment, a debt-to-income ratio of less than 43%, and adequate cash reserves equal to 6 – 12 months of mortgage payments.

• Non-Qualified Mortgage Loans

Non-qualified mortgage (non-QM) loans are those that do not meet the requirements of the Consumer Financial Protection Bureau’s (CFPB) Qualified Mortgage (QM) rule. The QM rule, enacted following the 2008 financial crisis, establishes specific standards for mortgage loans to ensure that borrowers can repay their loans, lowering the chance of defaults and foreclosures.

Non-QM loans use alternate ways of income verification to assist borrowers in obtaining a mortgage for their homes. These loans are designed for borrowers with unusual income qualifications, such as being self-employed or needing all the required papers to qualify for a typical mortgage.

• One-Time Close Construction Loans

A One-Time Close Construction Loan, a “construction-to-permanent” or “single-close” loan, incorporates the construction phase and permanent mortgage into a single loan. This allows you to finance the cost of constructing a new home and seamlessly transition into a long-term mortgage. This strategy can facilitate borrowing and save you money on closing costs and fees.

During construction, funds are disbursed to pay for the home’s construction costs. This may include materials, labor, permits, and other construction-related costs.

Once the construction is complete, depending on the terms you negotiate with your lender, a construction loan may automatically convert into a permanent mortgage, either a fixed-rate or adjustable-rate mortgage (ARM). You will now begin making your mortgage payments regularly.

Apply for a Home Purchase Loan in Kirkland

Capital Home Mortgage provides competitive interest rates, significantly impacting your mortgage’s overall cost. Lower interest rates can reduce monthly payments and the total interest paid throughout a loan. We will collaborate with you to find innovative solutions that meet your specific requirements, especially if you have a non-traditional financial profile.

We offer excellent customer service and provide access to a dedicated loan officer who can guide you through the mortgage application process and promptly answer your questions.

Call (424) 324-9505 to speak with our Kirkland Home Loan Specialists about your home purchase needs.