Home Purchase Loans In Richland

Richland’s home market is holding up well in the Tri-Cities. For four months in a row, inventory has increased while prices have remained stable1. The number of houses sold is likewise increasing. Richland, Washington, home buyers may expect a competitive market with a solid selection of homes for sale. 

Purchase Loan Programs in Richland

There are several mortgage loan programs available for Richland home buyers. Among them are the following:

• Conventional – Conforming Loan

A conventional conforming loan is a mortgage that meets the requirements of Fannie Mae and Freddie Mac, two government-sponsored enterprises that buy residential mortgages from lenders to provide liquidity. The conforming loan limit for Benton County, Washington, is $726,200 for single-family homes in 2023. This means the maximum loan amount for a single-family residence in Benton County with a conventional conforming loan is $726,200.

Applicants must meet particular requirements to be eligible for a conventional conforming loan in Benton County, Washington. In most circumstances, they must have a credit score of 620 or higher, a debt-to-income ratio (DTI) of less than 45%, and a down payment of 3% or more. Applicants must also have a stable record of employment and income dating back at least two years. These requirements may differ from loan to lender, so verify with your lender for their requirements.

• FHA Home Loan

An FHA loan in Richland, Washington, is a form of government-backed mortgage offered by Federal Housing Administration-approved lenders. These loans are intended to assist low-income and first-time homeowners by providing options for low down payments and more lenient credit requirements. FHA loans in Richland offer down payments as low as 3.5% for credit scores of 580 or higher and 10% for scores between 500 and 579. Depending on the property type and local home values, Washington’s loan limits range from $472,030 to $907,900.

Key characteristics of an FHA loan include simplified eligibility requirements, lower down payments, and the option to include co-signers and joint applicants. Advantages include lower down payments and easier qualification, while disadvantages include high insurance costs and lower limits. Eligibility requirements include a minimum credit score of 500, a debt-to-income (DTI) ratio of less than 43 percent, and the requirement for mortgage insurance. The loan must be used to purchase the borrower’s primary domicile, and certain property requirements must be met. In addition to streamline and cash-out refinancing, additional options for property repairs, such as FHA 203k, are also available.

• VA Home Loan

The VA home loan program provides mortgage loans to qualifying service members, veterans, and surviving spouses. It is backed by the United States Department of Veterans Affairs (VA) and includes advantages such as no down payment, no private mortgage insurance (PMI), and competitive interest rates. As of 2020, if you have full entitlement in Richland, Washington, there is no VA loan cap. This means eligible veterans, service members, and survivors with full entitlement are no longer restricted from borrowing more than $144,000.

Applicants must satisfy specific criteria to qualify for a VA home loan in Richland, Washington. They must also possess a legitimate Certificate of Eligibility (COE) and satisfactory credit. The COE can be requested online and demonstrates to the lender that the applicant is eligible for a VA mortgage based on their service record and current duty status. The property being purchased must also be occupied by the buyer. It is important to note that while the VA establishes specific eligibility requirements, lenders may also have their own credit and income requirements for borrowers to qualify for financing.

• USDA-Guaranteed Home Loan

The USDA Rural Development Single Family Housing Guaranteed Loan Program aids qualified lenders in giving low- and moderate-income households in qualifying rural areas the chance to own adequate, modest, decent, safe, and sanitary homes as their primary residence. Appropriate candidates may use 100% financing to buy, build, remodel, improve, or relocate a home in a proper rural region. The initiative offers certified lenders a 90% loan note guarantee to decrease the risk of granting 100% loans to eligible rural homebuyers – no money down for those who qualify!

To qualify for this program, applicants must satisfy specific requirements. They must also be a U.S. Citizen, a U.S. non-citizen national, or a Qualified Alien and meet the income eligibility requirements (income cannot exceed 115% of the median household income). The property must be located in an eligible rural area, as determined by the USDA’s Eligibility Website. In addition, the property must be a single-family dwelling (including detached, attached, Planned Urban Development (PUD), condominiums, modular, and manufactured homes) and satisfy specific requirements. The property has no maximum purchase price; loans depend on the applicant’s repayment ability.

• Jumbo Loan

A jumbo loan exceeds the Federal Housing Finance Agency’s (FHFA) conforming loan limits. A jumbo loan in Richland, Washington, is a conventional mortgage that exceeds $726,200. Jumbo loans are intended to finance high-value residences that exceed the limits imposed by the government-sponsored businesses Fannie Mae and Freddie Mac. Jumbo mortgages allow consumers to finance their high-value homes with a single mortgage.

Borrowers must demonstrate strong financial health because jumbo loan lenders take a more considerable risk. A strong credit score, a low debt-to-income (DTI) ratio and enough cash reserves are three major prerequisites for jumbo loans. A higher credit score is required to qualify for a jumbo loan than a standard loan. Lenders will look for negative things on your credit report, such as missed or late payments, foreclosures, and bankruptcy. Lenders will examine your debt-to-income (DTI) ratio and credit report. The amount of cash reserves you have in the bank is the third significant aspect that lenders consider.

• Native American Home Loan 

The Section 184 Indian Home Loan Guarantee Program is a loan program for American Indian and Alaska Native families, Alaska villages, tribes, or housing entities named by the tribe. In 1992, Congress set up this scheme to make it easier for Native Americans to buy homes and give them more access to capital. Borrowers can get into a home with a low down payment and flexible screening through Section 184 financing. Section 184 loans can be used to build new homes, fix up old ones, buy an existing home, or sell, both on and off native lands.

To qualify for this program, you must be an American Indian or Native American who is buying a home that will be your main home. You or someone in your family must also be an Indian or Alaska Native person recognized by an Indian group, the Federal Government, or any State. The main requirement for getting a Section 184 Native American Loan is to be a member of a group that the federal government recognizes Indians or Indian family members over 18 who will live in the land as their primary home are eligible to borrow.

Apply for a Richland Home Purchase Loan

Capital Home Mortgage is a good choice for a loan to buy a home in Richland for several reasons. Capital Home Mortgage has served thousands of satisfied consumers, which shows how reliable we are and how much we care about giving excellent service. We have various loan choices, such as home purchase loans, home refinance loans, and even specialized loans like jumbo home loans, FHA/VA loans, and reverse mortgage loans, so that we can meet the needs and financial situations of a wide range of clients.

Call (509) 413-0502 to speak with one of our Richland Home Loan Specialists about your home purchase loan questions.