Home Loans In Olympia, Washington

Olympia is the capital of the state of Washington. It is located in Thurston County and is the largest city in the county. It is 60 miles southwest of Seattle,m the most populous city in Washington. 

The housing market in Olympia is very competitive, with a median price of $465k and an average price per square foot of $289.

Home Loan Programs in Olympia

There are several mortgage loan programs in Olympia. The 30-year fixed conventional loan is the commonly used mortgage preferred by homebuyers, followed closely by FHA loans. These are the widely used home loan programs in Olympia:

• Conventional – Conforming Loan

Conventional loans are mortgages not insured nor guaranteed by the federal government and not part of government programs. Conventional loans can either be conforming or non-conforming.

Conforming loans are mortgages that meet the loan limits set by the Federal Housing Finance Agency (FHFA) and the funding criteria of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.

A minimum credit score of 620 is required on all conventional loans and a debt-to-income (DTI) ratio of less than 45%. As simple as it sounds, conventional loans have a strict eligibility requirement compared to government loan programs. 

The conventional loan limit for Olympia is $726,200 for a single-family residence.

• FHA Home Loans

FHA loans are mortgages insured by the Federal Housing Administration. The FHA is under the US Department of Housing and Urban Development (HUD). By insuring the loans against default, lenders can offer favorable terms to borrowers not available in conventional loans.

FHA-insured loans are the most lenient among mortgage programs. A credit score of 580 makes a borrower eligible for a 3.5% down payment. However, borrowers with scores between 500 – 579 may still qualify with a minimum of 10% down, and certain restrictions will apply.

The FHA loan limits in Thurston county are $546,250 for a single-family residence, $699,300 for a duplex, $845,300 for a tri-plex, and $1,050,500 for a four-plex.

• VA Home Loans

VA home loans are mortgage guaranteed by the US Department of Veterans Affairs and originated by private lenders like banks, credit unions, and mortgage companies. The VA guarantees the loan against default enabling the lender to offer more favorable terms than conventional loans.

The borrower’s length of service or service commitment, duty status, and character of service determines their eligibility for specific home loan benefits. The property must be used as a personal and primary residence. Borrowers typically have 60 days to occupy the property after closing.

To be eligible for a VA loan, borrowers must have satisfactory credit, sufficient income to meet the expected monthly payments, and a valid Certificate of Eligibility (COE).

• USDA Home Loans

USDA home loans are mortgages guaranteed by the US Department of Agriculture. The home loan program is designed to help low and moderate-income households have the opportunity to own decent, safe, and sanitary dwellings are their primary residence in an eligible rural area. The USDA guarantees 90% of the loan to reduce the risk of extending 100% of loans to eligible borrowers. It is a no-money-down loan program.

Borrowers must meet the income requirement of 115% of the Area Median Income (AMI) of the county where the property is being purchased. They must be a US citizen or a resident alien and occupy the property as their primary residence. The property cannot be income-generating and must be located in a USDA-designated rural area.

• Jumbo Mortgage 

Any mortgage loan that exceeds the conforming loan limit set by the FHFA is considered a jumbo loan. They are primarily used to finance properties that are too expensive for a conventional-conforming loan.

Jumbo loans have stricter eligibility requirements than conventional loans. A credit score of 700 is typical on jumbo loans. Lenders require a minimum score of 720 and above to qualify. A debt-to-income ratio of less than 43% is preferred, and cash reserves of 6 – 12 months are typical to be eligible.

Apply for a Home Loan in Olympia

Contact us immediately to discuss your home finance requirements in Olympia. Our experienced mortgage consultants are standing by to assist you in obtaining quality home loans in Olympia, WA. 

Call us at (360) 474-5656 to chat with one of our loan officers about your home-buying goals. Thank you for visiting our website; we look forward to assisting you in financing your dream home.