Home Loans In Pasco, Washington

Pasco, a city in Franklin County, Washington, is one of the three cities that makes up the state’s Tri-Cities region, the others being Kennewick and Richland. The housing market in Pasco is somewhat competitive, with an average median price of $390k, and sells after 80 days on the market. One can always find affordable townhomes and 2-bedroom property listings in the city.

Home Loan Programs In Pasco

Conforming loans and FHA loans are two regularly used mortgage loan programs in Pasco, Washington. In addition to conventional and FHA loans, you may want to look into USDA Rural Housing site loans for low- and moderate-income households in rural areas. These loans include Section 523 loans, which are used to acquire and build housing sites.

• Conventional – Conforming

Conventional loans are any loans not insured or guaranteed by the federal government. Conforming loans, on the other hand, meet the loan limits set by the Federal Housing Finance Agency (FHFA) and satisfy the terms and conditions set by the Government Sponsored Enterprises (GSE) Fannie Mae and Freddie Mac.

The conforming loan limits in Pasco, Franklin county, are $726,200 for a single unit, $929,850 for a duplex, $1,123,900 for a Triplex, and $1,396,800 for a Four-plex, respectively.

The most prevalent type of mortgage financing in Washington is a conventional 30-year fixed mortgage. A credit score of 620 is required to qualify, and a debt-to-income less than 45%.

• FHA Loans

FHA loans are mortgages insured by the Federal Housing Administration (FHA), a division of the US Department of Housing and Urban Development, commonly known as HUD. The loans are insured against the borrower’s future default, relieving the lenders of any loss in the event of a future foreclosure. 

The Federal Housing Administration does not directly extend loans. FHA-approved private lenders originate the mortgages, such as banks, credit unions, and mortgage companies. FHA loans are easier to qualify for due to their lenient credit score and higher debt-to-income ratio requirement.

A borrower only needs a credit score of 580 to qualify for an FHA loan’s 3.5% down payment requirement. With compensating factors, the debt-to-income (DTI) ratio may go as high as 50 – 55%. Borrowers with credit scores below 580 down to 500 may still be eligible with at least a 10% down payment, and certain restrictions will apply.

FHA’s loan limit for 2023 in Franklin County is $472,030 for a 1-unit, $604,400 for 2 units, $730,525 for 3 units, and $907,900 for 4 units, respectively.

• USDA Home Loans

This program, also called the Section 502 Direct Loan Program, helps low-income people get decent, safe, and clean housing in eligible rural areas by assisting with payments to make it easier for them to repay their loans. Payment assistance is a subsidy that temporarily lowers the monthly mortgage payment. The adjusted family income is used to figure out how much help to give.

The program is a no-money-down home loan. However, applications that have more assets than the required asset limits may be required to put some down payment.

The USDA single-family housing direct maximum loan limit for Franklin County in 2023 is $377,600.

• VA Home Loans

A VA home loan is a benefit offered by the US Department of Veteran Affairs (VA) to assist service members and veterans in constructing, purchasing, or refinancing a home. VA loans are guaranteed by the US Department of Veterans Affairs and offered by private lenders, like banks, credit unions, and mortgage lenders. They provide a no-money program to qualified veterans and their eligible spouses.

To be eligible for a VA home loan in Washington, you must meet all the requirements established by the Department of Veteran Affairs and your mortgage lender. In general, VA Loan eligibility is determined by your service’s length, nature, and status.

Apply for a Home Loan in Pasco

Capital Home Mortgage is committed to making purchasing a home enjoyable for our customers. We are all aware that time is of the essence when it comes to real estate transactions. As a result of this, we make it a priority to equip ourselves with the appropriate tools and technology to hasten the procedures of the loan application, underwriting, and funding.

You can rely on us to complete your mortgage application in a timely manner while also keeping it simple and hassle-free.

Call us at (509) 413-0502, and we can assist you in obtaining a Pasco Home Loan.