Home Purchase Loans In Marysville

Marysville, Washington, homebuyers can anticipate a competitive housing market. Homes for sale receive an average of six offers and are sold in approximately seven days. The median house price in Marysville was $620K in June 2023, up 3.3% from the previous year. 

Purchase Loan Programs in Marysville

There are numerous mortgage loan programs available to Marysville, WA, homebuyers. The following are some of the most prevalent mortgage loan programs in Marysville:

• Conventional Home Loans

A conventional home loan in Marysville, Washington, is a mortgage neither guaranteed nor insured by the government. Private lenders instead offer it following Fannie Mae and Freddie Mac’s guidelines. Conventional loans in Washington State fall into two categories: conforming loans, which adhere to size limits established by the Federal Housing Finance Agency (FHFA), and jumbo loans, which surpass these limits.

The 2023 conforming loan limits in Marysville are $977,500 for a single-family residence, $1,251,400 for a duplex, $1,512,659 for a triplex, and $1,879,859 for a quadplex, respectively.

The advantages of a conventional mortgage loan include mortgage insurance (MI) flexibility. Conventional loans allow the borrower to circumvent MI payments with a 20% down payment, contributing to their popularity in Washington. Other benefits include a variety of loan options and possible interest rate advantages. Conventional loan eligibility requirements include a minimum FICO score of 620 and a 3-5% down payment. 

• FHA Home Loans

The Federal Housing Administration (FHA) insures FHA home loans available to homebuyers in Marysville, WA. FHA loans are designed to assist applicants with low to moderate incomes who may not qualify for a conventional mortgage. The FHA insures the loan, so if the borrower defaults, the FHA will pay the remaining balance to the lender. This reduces the risk for lenders, allowing them to offer borrowers more favorable loan terms.

The advantages of an FHA mortgage loan include lower credit scores and down payment requirements. You may qualify for an FHA loan in Marysville with a credit score as low as 580 to be eligible for a 3.5% down payment of the purchase price, less than the conventional mortgage down payment requirement of 5 – 20%.

Specific requirements must be met to qualify for an FHA home loan in Marysville. You must have at least two years of consistent income and credit history. In addition, you cannot have any delinquent federal debt or judgments, whether tax-related or not, or obligation associated with previous FHA-insured mortgages. In addition, the loan amount cannot exceed the home’s value, and you must intend to reside there. Working with an FHA-approved lender to determine your eligibility and locate the most suitable loan program for your requirements is essential.

The 2023 FHA loan limits in Marysville, Snohomish County, are $977,500 for a 1-unit property, $1,251,400 for a 2-unit property, $1,512,659 for a 3-unit home, and $1,879,859 for a 4-unit house.

• VA Home Loans

A VA home loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA) and available to qualified service members, veterans, and surviving spouses. Private lenders, such as banks and mortgage companies, provide VA home loans; the VA guarantees a portion of the loan, enabling the lender to offer more favorable terms.

There are no down payment requirements, competitively low-interest rates, limited closing costs, and no need for private mortgage insurance (PMI) with a VA home loan in Marysville. You must have satisfactory credit, sufficient income, and a valid Certificate of Eligibility (COE) to qualify for a VA home loan. The COE demonstrates to the lender that you are eligible based on your service record and current duty status. You can submit a COE request online or via your lender. Working with a VA-approved lender to determine your eligibility and locate the most suitable loan program for your requirements is crucial.

• One-Time Close Construction Loans

A one-time close construction loan is a specialized form of mortgage that combines the land purchase, construction financing, and permanent loan into a single closing. This type of loan is available through various programs, such as FHA, USDA, and VA. It provides multiple advantages, including a single qualification, fixed interest rates, and interest-only installments during construction.

These loans benefit Marysville home buyers because they simplify the buying process, save time and money, and have lower closing fees. Depending on the program, different eligibility restrictions apply. These often include a minimum down payment (3.5% for FHA), flexible credit profiles, and hiring a qualified contractor for the construction process. Exclusions may apply depending on the property type, and veterans may face varying down payment requirements.

• Native American Home Loans

The Section 184 Indian Home Loan Guarantee Program is a mortgage loan product explicitly designed for American Indian and Alaska Native families, Alaska villages, tribes, and tribally designated housing entities. Congress established this program in 1992 to increase access to capital and facilitate homeownership in Native American communities. Section 184 financing enables borrowers to purchase a property with a small down payment and flexible underwriting. Section 184 loans may be used for new construction, rehabilitation, buying an existing property, or refinancing on and off native lands.

The Section 184 Native American Home Loan has several advantages, including minimal down payment requirements (2.25% on loans over $50,000 and only 1.25% for loans under $50,000), no minimum credit score (although you must be creditworthy), and a one-time guarantee fee of 1.5% due at closing. To be eligible for this program, you must be a Native American/American Indian who is in the process of purchasing a primary residence. You or a family member must also be recognized as Indian or Alaska Native by an Indian tribe, the federal government, or any state.

• Jumbo Home Loans

A jumbo mortgage in Marysville, Washington, is a home loan that exceeds the Fannie Mae or Freddie Mac loan limits. In 2023, the increased jumbo loan limit in Washington reached $977,200. Jumbo loans facilitate the purchase of more expensive homes and are frequently used to finance luxury properties. 

The eligibility requirements for jumbo loans in Marysville, Washington, include a debt-to-income (DTI) ratio of less than 43%, substantial financial assets, valid income documentation, and typically a 10% down payment. Some lenders may require a higher credit score, six to twelve months’ reserve mortgage payments, and particular property type requirements. The advantages of jumbo loans include increased purchasing power in the housing market, various options tailored to diverse home-buying needs, and the ability to access equity for consolidation, investment, and home enhancements. Substantial down payments and low DTI ratios may be required for some loan types, as they indicate a secure cash flow.

• Non-Qualified Mortgage Loans

In Marysville, Washington, a non-qualified mortgage loan (non-QM) is a mortgage loan that deviates from traditional income-based verification and does not adhere to the Consumer Financial Protection Bureau (CFPB) criteria. Non-QM alternatives, such as No-Doc Loans, DSCR Loans, Interest-Only Loans, and Foreign National Loans, appeal to non-traditional incomes, self-employed individuals, investors, and unique financial situations. These loans have expanded real estate opportunities in Washington and have evolved to include offerings that meet the specific requirements of borrowers, albeit with higher fees and interest rates. 

The primary benefits of non-QM loans are their adaptability and ability to accommodate unusual circumstances. They allow flexible underwriting, low credit score requirements, minimal down payments, and timely real estate investments. This makes non-QM loans appropriate for retirees, business proprietors, individuals seeking flexible payment options, and subprime borrowers. The eligibility requirements may include substantiation based on bank statements, rental income, assets, or credit, as well as specific products such as Interest Only, Platinum Jumbo, Portfolio Select, and Bank Statement loans that provide additional options tailored to the particular needs of each applicant. Non-QM loans are a viable option for those who still need to meet conventional criteria, even though the documentation process may be more complex and expensive due to the risk perception.

Apply for a Marysville Home Purchase Loan

There are numerous options for applying for a home purchase loan in Marysville. Capital Home Mortgage is a direct lender of mortgages. We are committed to delivering superior customer service and would be thrilled to assist you. 

Please call (253) 528-4443 to reach one of our Home Loan Specialists.