Home Loans In Richland, Washington

Richland is a vibrant city in Benton County, located in southeastern Washington. Known for its bustling downtown area filled with shops, restaurants, and entertainment venues, it is conveniently located close to Seattle and other major cities in the region.

The real estate market in Richland is somewhat competitive, with an average median price of $430k and a price per square footage of $240.

Home Loan Programs in Richland

With a median home price of $430k, Richland has various mortgage loan programs available for first-time homebuyers and seasoned buyers. The most prevalent mortgage loan is a Conventional loan, followed by FHA loans. Here are the most common home loan programs in Richland:

• Conventional Loan

Any loan not that part of a specific government program is considered a conventional loan. They have strict qualification requirements compared to federally insured or guaranteed loan programs.

To qualify for a conventional loan, you will need a minimum credit score of 620 and a down payment of 5%. However, borrowers with credit scores of 740 or higher can make a lower down payment of 3% and are more likely to secure a better interest rate. Conventional loans require a good credit history with no significant adverse events, such as bankruptcy or missed payments.

Borrowers must demonstrate a steady income to cover the monthly mortgage payments adequately. A debt-to-income ratio of 43% or less is required on all conventional loans.

The conforming loan limit for 2023 in Benton county is $726,200. Those looking to buy a duplex are allowed $929,850. If you’re interested in a tri-plex, the maximum loan amount is $1,123,900, and $1,396,800 for a four-plex.

• FHA Loan

FHA home loans are mortgages insured by the Federal Housing Administration (FHA) under the authority of the US Department of Housing and Urban Development (HUD). FHA loans are designed to help low and moderate-income borrowers qualify for a mortgage by offering lower down payments and less-restrictive credit requirements than conventional home loans. They are particularly popular with first-time homebuyers and can be used to buy a home, refinance a mortgage, or renovate a home.

To qualify for an FHA loan, borrowers need a minimum credit score of 580 and a down payment of 3.5%. However, borrowers with credit scores from 500 – 579 may still be eligible but must put in a minimum of 10% down payment, and certain restrictions will apply.

The Federal Housing Administration does not originate the loan. They are issued by private, FHA-approved lenders, such as banks, credit unions, and mortgage companies. The FHA loan limit for Benton County is $472,030 for a 1-unit property, $604,400 for a 2-unit, $730,525 for a 3-unit, and $907,900 for a 4-unit, respectively.

• VA Loan

VA home loans are mortgage loans guaranteed by the US Department of Veterans Affairs (VA) and designed to help eligible veterans, service personnel, and their families purchase homes. The main benefit of VA home loans includes no down payment requirement, competitive interest rates, limited closing costs, and no mortgage insurance.  

You must meet the service requirements, have satisfactory credit, sufficient income, and a valid Certificate of Eligibility. VA loans are strictly for primary residence and must be occupied within 60 days of closing.

• USDA Home Loan

A USDA Home Loan is a zero-down payment mortgage program designed to assist low-income applicants in obtaining decent, safe, and sanitary housing in an eligible rural area. The US Department of Agriculture guarantees these loans.

To qualify for a USDA loan, borrowers must have an adjusted gross income at or below the applicable income limit for Benton County. They must be without decent, safe, and sanitary housing. US citizens and legal permanent residents are eligible for USDA home loans. A credit score of 640 is typically required.

The maximum limit for USDA loans in Benton County for 2023 is $377,600.

Apply for a Home Loan in Richland

Capital Home Mortgage is a direct lender and servicer in Richland, Washington. Contact our home loan experts today to discuss your home loan requirements. 

To get started, call us at (509) 413-0502. You’ll be glad you did.