Capital Home Mortgage Seattle

Seattle FHA home loans

FHA Mortgage Lender Seattle Washington

FHA Home Loans In Seattle Washginton

A Federal Housing Administration loan, also known as an FHA loan, is a mortgage insured by the federal government. It is intended to aid low-income and first-time homebuyers obtain a mortgage by providing more flexible credit requirements and typically requiring a smaller down payment than conventional loans.

Over the past decade, more than 275,000 families in Washington have utilized FHA-insured mortgages to purchase residences in Seattle, Washington. This prevalence can be attributed to its benefits, which include a maximum loan amount of $977,500 for single-family homes, the option for non-occupant co-borrowers, and a down payment requirement as low as 3.5% of the home’s purchase price.

FHA loans may be used to purchase a property with up to four living units as long as the borrower resides in one of them. FHA loans in Seattle can also be used to buy condominiums; however, the condominium project must be on the Department of Housing and Urban Development’s (HUD) “approved” list, indicating that it has been reviewed and meets all their requirements.

FHA Loan Requirements in Seattle

The following are the qualification requirements for an FHA loan in Seattle, Washington, in 2023:

  • Credit Score

Compared to conventional loans, FHA loans have a more lenient credit score requirement. This makes them an attractive option for borrowers with lower credit ratings than those required for conventional loans.

The amount of your down payment determines the minimum credit score required for an FHA loan. If the down payment is 3.5% of the loan amount, the needed credit score is 580. However, if you can provide a 10% down payment, you can qualify with a credit score as low as 500.

  • Down Payment

If you have a credit score of at least 580, the minimum down payment for an FHA loan is 3.5%. If your credit score is between 500 and 579, it is 10%.

  • Debt-to-Income Ratio

The FHA requires a debt-to-income ratio of less than 45%. However, the ratio could be as high as 50% with compensatory factors.

  • Property Requirements

A certified FHA appraiser must appraise the property you are considering. You can only qualify for a new FHA loan if the subject property is your primary residence. You must move in within sixty days of the closing date. The property must be inspected, and the inspection report must indicate whether the property meets minimum property standards.

  • Income and Employment

Borrowers must have a consistent source of income and proof of employment. A two-year verifiable work history is required on FHA loans.

  • Loan Limit

For 2023, the loan limit for FHA loans in Seattle, King County, is as follows: $977,500 for a single-family residence, $1,251,400 for a duplex, $1,512,650 for a triplex, and $1,879,850 for a four-plex, respectively.

The Federal Housing Administration insures FHA loans, making it easier for borrowers with less-than-perfect credit or a history of bankruptcy to qualify. Although being a first-time homebuyer is not required to qualify for an FHA loan, these loans are popular among first-time homeowners due to their more forgiving credit score, current debt, and low down payment requirements.

Pros and Cons of FHA Loans in Seattle

An FHA loan’s eligibility would be determined by the buyer’s unique circumstances, such as credit history, available down payment, and long-term financial goals. The following are the pros and cons of an FHA loan in Seattle:

Pros:

  • Flexible Qualification Requirements

FHA loans enable buyers to qualify with a lower credit score and a smaller down payment. A borrower can qualify with a credit score of 500. A 10% down payment is required for credit scores between 500 and 579. If the credit score is 580, a 3.5% down payment is required.

  • Lower Down Payments

FHA loans require a minimum down payment of 3.5%. This is advantageous if you have limited savings, no equity from a previous home sale, or want to keep more money in the bank.

  • Use of Gift Funds

Gift funds can be used for the down payment, further easing the burden of initial expenses. The gift donor may be a relative, an employer, or a charitable organization.

  • Availability After Adverse Credit Events

After adverse credit events, such as bankruptcy, FHA loans are made available sooner than conventional loans. For instance, the waiting period for an FHA loan after a Chapter 7 bankruptcy is two years, while it is four years for a conventional loan.

Cons:

  • Mandatory Mortgage Insurance

All FHA loans require mortgage insurance, which increases the cost of the loan over time. Mortgage insurance safeguards the lender in the event of borrower delinquency.

  • FHA Loan Limits

FHA loans have lower loan limits than conventional ones, limiting the amount of money that can be borrowed. This could be a detriment in a high-cost area such as Seattle.

  • Higher Overall Costs

FHA loans typically have higher overall costs due to the required initial and annual mortgage insurance premiums. The premiums can substantially increase the total cost of the loan.

  • Limited Flexibility

FHA loans provide less flexibility compared to conventional loans. There are specific restrictions on the nature and condition of the property that can be purchased.

Apply for an FHA Loan in Seattle

Choosing Capital Home Mortgage Seattle to obtain an FHA loan in Seattle offers homebuyers several advantages. First, FHA loans are known for their flexible eligibility requirements, which make them available to borrowers with less-than-perfect credit. Capital Home Mortgage Seattle excels at providing these loans with lenient underwriting requirements, competitive interest rates, and pricing. In addition, for first-time home buyers or those with limited funds, the low down payment requirement associated with FHA loans can be highly advantageous, and these loans are growing in popularity among Seattle millennials. Lastly, Capital Home Mortgage Seattle‘s customer-centric approach ensures a smooth and stress-free home-buying experience by providing purchasers with comprehensive guidance throughout the loan application process.

Call our Seattle FHA Loan Specialists at (253) 528-4417 for all your FHA loan questions. We are here to help.

Why Seattle HomeBuyers are Choosing Capital Home Mortgage
Close On Time

Complete Control from Application to Funding

Low Rates & Low Fees

Direct Lender with Competitive Rates & Low Fees

Exceptional Service

7  Day a Week Support Application to Final Payment

Seattle Washington Mortgage Rates

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Seattle FHA Home Purchase Loans

FHA Purchase Mortgage Lender
  • Simple Qualifying
  • Smaller Down Payment
  • Seller Paid Closing Costs
  • Flexible Underwriting
  • Higher Debt to Income Ratios
  • Lower Credit Scores Allowed
  • Manufactured Housing OK

Seattle FHA Refinance Home Loans

FHA Refinance Mortgage Loans

FHA Standard Refinance

  • Appraisal Required
  • 97.75% Max Loan to Value
  • Closing Costs Can Be Rolled In
  • 80% Max Loan to for Cash-out
  • Cash-out Option Available
  • County Loan Limits Apply

FHA Streamline Refinance

  • FHA to FHA
  • No Income Qualification
  • No Appraisal Required
  • Closing Costs Cannot Be Rolled In
  • No Lates on Mortgage in Last Year
  • Payment Must Drop on Fixed Rates

Seattle FHA Renovation Home Loans

FHA 203K Mortgage Loans

FHA 203K is a great option for makes cosmetic changes to an older home.  It allows a FHA buyer to update out of date cosmetics of a home as part of purchase or refinance.  Make that old home new with a Streamline 203K renovation.

  • Purchase & Refinance Options
  • Primary Residences Only
  • Single, Multi Family & Condo’s
  • As-Is Improved Renovated Value
  • 203K Streamline
  • Less < 35K, Cosmetic Repairs Only
  • 203K Full Rehab
  • Greater > 35K, No Restrictions
Seattle Mortgage Programs

Seattle Home Purchase loans

Looking to Purchase a Seattle Home?

Looking to Purchase a Home? We have the loan program for you… Call today to speak with a loan officer to discuss your personal mortgage options.
  • Primary, 2nd Home, Investment
  • Low Rates & Fees, No fee Options
  • FHA, VA, USDA, Native American
  • Conventional, Jumbo & Renovation
  • Manufactured, Construction, Reverse

Seattle Renovation Home Loans

Looking to Rehab a Seattle Home?

Want the Charm of an Older Neighborhood? But want a new place or a fresh look? Why not a renovation loan? Purchase the Perfect Home and make it your own.
  • Remodel, Renovate or Repairs
  • FHA 203K Streamline 
  • FHA Full Documentation Rehab
  • Fannie Mae Homestyle Reno
  • Freddie Mac Home Choice Reno

Seattle FHA Home loans

Great 1st Time Seattle Homebuyers

FHA Home Loans are great for first time home buyers, buyers with less than perfect credit, or buyers needing less out of pocket.   Call today to get started.
  • Smaller Down Payments
  • Flexible Underwriting Guidelines
  • Higher Debt to Income Allowed
  • Lower Credit Scores – Down to 500
  • Down Payment Gifts Allowed

Seattle va Home Loans

100% Financing for Seattle Vets

Proudly Serving Active Duty servicemen and women, as well as, retired and disabled veterans. Call today to speak with a VA loan officer.
  • No Mortgage Loan Limits
  • Simple Qualifying
  • Higher Debt to Income Allowed
  • Lower Credit Scores – Down to 500
  • Manual Underwriting Allowed

Seattle Conventional Home loans

Flexibility for Seattle Homebuyers

Conventional Home Loans are the best option for flexibility of property types and for mortgage loan terms. Call today to get speak to a loan officer.
  • Primary, 2nd Home, Investment Properties
  • Single and Multi-Family Properties
  • Variable Mortgage Insurance Options
  • Low Rates & a Variety of Mortgage Terms
  • Renovation Programs Available

Seattle Jumbo Home Loans

Seattle Non-Confirming Home Loans

Jumbo Home Loans also called Non Conforming Home Loans are great options for buyers needing financing outside of agency limits. Call today.
  • Primary & 2nd Homes
  • Variety of Mortgage Programs
  • Simple Qualifying for Veterans
  • Investor Specific Guidelines
  • Credit Score Minimums

Seattle USDA Home loans

100% Rural Seattle Home Loans

USDA Loans are a great option for families wanting to live outside of the city.  Call today to speak with a loan officer to discuss your personal loan options.
  • Primary Residences
  • No Down Payment Required
  • New Manufactured Homes Allowed
  • Closing Costs / Repairs Rolled In
  • Geographic and Income Limits Apply

Seattle Native american Home Loans

Seattle Hud 184 Home Loans

HUD 184 Home Loans are solely for Native American and offer a variety of benefits.  Call today to speak with a loan officer to find out more.
  • Primary Residence Only
  • Manual Underwriting for All Loans
  • No Credit Score Requirements
  • Tribal Grants Allowed
  • Purchase, Refinance, and Renovation

Seattle Manufactured Home loans

Great Alternative Seattle Housing

Manufactured Home Loans offer options to purchase an existing residence or build your dream home on your own land. Call today to speak to a Loan Officer.
  • Existing Purchase or Refinance
  • New Construction
  • One Time Close Land/Home Combo
  • Lock at Contract
  • FHA, VA, USDA, Native American

Seattle Reverse Mortgage Loans

Your Seattle Home at Work

Reverse Mortgage Loans offer seniors options to use their home’s equity for cash or to eliminate payments. Call today to get speak to a Reverse Loan Officer.
  • Primary Residence Only
  • Simple Qualifying – Equity Based
  • No Credit Score Requirements
  • Minimum Age 62
  • Purchase, Refinance, and Cash-Out

Seattle Non QM Home loans

Making Seattle Mortgages Possible

Looking for Non Traditional Home Mortgage Loan?  Contact a Loan Officer Today to discuss the alternative mortgage options currently available.
  • Purchase, Refinance & Cash-out
  • Primary, Secondary, Investment Properties
  • Full Doc Programs
  • Alt Doc Programs
  • Corporations OK

Seattle One Time Close Home Loans

Build Your Seattle Dream Home

Want to Build? But unsure of what the future looks like? Remove the risk with a One Time Close Construction Loan.  Call today to see how a OTC loan works.
  • Primary Residences Only
  • One Time Close
  • Lock Rate at Closing
  • Traditional Final Mortgages
  • No Payments During Construction

Seattle Refinance Mortgage loans

Seattle Rate & Term Refinance

Refinancing can be a hard decision and the payback can sometimes be confusing.  Call today and let our Loan Officers walk you through the process.
  • Lower Monthly Payment
  • Shorten Mortgage Term
  • Streamline Options Available
  • Appraisal Waivers Allowed
  • VA IRRRL’s

Seattle Cashout Mortgage Loans

Seattle Equity Mortgage Loans

Cash-Out Mortgage Loans make use of the equity in your home by allowing you to refinance the current mortgage and access this equity to use as you see fit.
  • Debt Consolidation
  • Investment Opportunities
  • Home Improvement
  • Dream Vacation
  • Higher Education

Seattle Washington Mortgage Team

Dale Gremillion

Sr Loan Officer
NMLS #210325

Conor Hayhurst

Branch Manager
NMLS #743506

Sam Klaburner

Sr Loan Officer
NMLS #140132

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