Capital Home Mortgage Spokane

Spokane Conventional Home Loans

Conventional Mortgage Lender Spokane Washington

Conventional Home Loans In Spokane Washington

What is a Conventional Mortgage?

A conventional mortgage is a homebuyer loan made available by private lenders such as banks, credit unions, or mortgage companies not guaranteed or insured by the federal government. They differ from government-backed loans such as those made by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA).

Although conventional loans are not directly given or secured by the government, they can be guaranteed by the two Government Sponsored Enterprises (GSEs), Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

What are the Types of Conventional Loans?

There are two categories of conventional loans: conforming and non-conforming. Conforming loans adhere to the loan limits established by the Federal Housing Finance Administration, or FHFA. In contrast, non-conforming loans do not satisfy these criteria.

  • Conforming Loans

A conventional conforming loan is a mortgage that fulfills Fannie Mae and Freddie Mac’s funding criteria and the Federal Housing Finance Agency’s (FHFA) loan limits. These loans have an annual amount restriction that cannot be exceeded. For example, in 2023, the maximum in Spokane is $726,200, as in most of the United States, but more in certain costly regions.

This type of loan is frequently advantageous for borrowers with outstanding credit due to its low-interest rates, and lenders prefer it because it can be packaged and sold on the secondary mortgage market. Typically, the requirements for such loans are based on the borrower’s credit score, income, and down payment amount.

  • Non-Conforming Loans

Non-conforming conventional loans are mortgages that do not conform to the guidelines established by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. This means that these entities cannot buy or sell them.

This nonconformance may occur for several reasons. The loan amount may exceed the Federal Housing Finance Agency (FHFA) limits for Spokane and most of the United States in 2023, which is $726,200. The borrower’s credit score or debt-to-income ratio may not meet the requirements, or the loan may have an unconventional structure, such as an interest-only mortgage or a term other than 15 or 30 years.

Even though non-conforming loans can provide financing to borrowers who may not meet conventional requirements, they typically bear higher interest rates than conforming loans due to the increased risk to the lender. Therefore, they must be held by the original lender or sold to other private investors, as they cannot be sold to Fannie Mae or Freddie Mac.

In addition to higher interest rates, these loans may require a larger down payment, a more stringent debt-to-income ratio, higher credit score thresholds, and more significant cash reserves. Non-conforming loans may also have higher closing costs and fees.

Advantages of a Conventional Conforming Loan

Conforming loans offer several advantages for borrowers. Among them are as follows:

  • Lower Interest Rates

Conforming conventional loans typically have lower interest rates than other types of mortgages. Lower interest rates can result in substantial savings over the loan’s duration.

  • Flexibility

Conventional loans are available in various forms, such as fixed-rate and adjustable-rate mortgages, providing flexibility based on the borrower’s financial circumstances and long-term goals.

  • Broad Use

These loans can be used for various purposes, including purchasing or refinancing a property.

  • Higher Loan Limits

Spokane’s conforming loan limits in 2023 are as follows: $726,200 for a single-family home, $929,850 for a duplex, $1,123,900 for a triplex, and $1,396,800 for a quadplex, with higher limits in more expensive areas. This can make conventional conforming loans more appealing to buyers of more expensive homes.

  • Secondary Market

Lenders prefer conforming loans because they can be packaged and sold on the secondary mortgage market. This is advantageous for borrowers because it enables lenders to declutter their balance sheets, which could result in more favorable terms for new borrowers.

Requirements of a Conventional Conforming Loan

To qualify for a conventional conforming loan, borrowers must satisfy the following criteria:

  • Credit Score

Most lenders require a credit score of at least 620 for a conventional loan. However, a higher credit score could result in more favorable terms, such as a reduced interest rate.

  • Down Payment

A conventional loan’s standard down payment requirement is 5% of the purchase price. Conversely, conventional loans permit down payments as low as 3 percent for highly qualified borrowers. Nevertheless, a 20% or greater down payment could exempt the purchaser from Private Mortgage Insurance (PMI).

  • Loan Limits

According to the Federal Housing Finance Agency (FHFA), the conforming loan limit for a single-family home in Spokane in 2023 is $726,200. A loan that exceeds this threshold requires a jumbo loan.

  • Debt-to-Income (DTI) Ratio

For conventional loans, the standard DTI ratio is 45%. While specific requirements may differ from lender to lender, a lower DTI ratio is typically viewed favorably because it indicates a lower risk of loan default.

  • Employment and Income

Generally, borrowers must provide evidence of a stable income and employment, and lenders typically require two years of consistent employment.

  • Property Use

Conventional loans can be utilized to purchase a primary residence, a second home, or even an investment property.

  • Private Mortgage Insurance

If the down payment is less than 20%, private mortgage insurance (PMI) is always required. This, however, can be canceled once home equity reaches 20%. 

Apply for a Conventional Loan with Capital Home Mortgage

Capital Home Mortgage provides Spokane homebuyers access to conventional conforming loans with lower interest rates than other loan types. Spokane homebuyers can avoid private mortgage insurance (PMI) with a 20% or more significant down payment. Capital Home Mortgage’s efficient in-house system guarantees a streamlined loan application and processing experience.

Call (509) 413-0502 to speak with one of our Spokane conforming loan specialists about your needs.

Why Spokane 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 Mortgage Payment

Spokane 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

Spokane Conventional Purchase Loans

Conventional Purchase Mortgage Lender
  • Freddie Mac or Fannie Mae Insured
  • Primary, 2nd or Investment Homes
  • Single and Multi Family
  • Condo’s and Manufactured Homes
  • MAXIMUM LOAN AMOUNT – $766,550

Spokane Conventional Refinance Loans

Conventional Refinance Mortgage Lender
  • Freddie Mac or Fannie Mae Insured
  • Primary, 2nd or Investment Homes
  • Single and Multi Family
  • Condo’s and Manufactured Homes
  • Mortgage Insurance Options
  • Lower Rates & Flexible Terms
  • Maximum Loan Amount – $766,550
  • High Balance (Varies By County)

Spokane Conventional Renovation Loans

Conventional Renovation Mortgage Loans
  • 95% LTV Primary  Residence
  • 97% LTV 1st Time Buyer Single Family
  • 85% LTV on 1 Unit Investment
  • 90% LTV on Second Home
  • Minimum Credit Score 620
  • Luxury Renovations are Eligible
  • Maximum Loan Amount – $766,550
  • High Balance (Varies By County)
Spokane Mortgage Programs

Spokane Home Purchase loans

Looking to Purchase a Spokane 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

Spokane Renovation Home Loans

Looking to Rehab a Spokane 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

Spokane FHA Home loans

Great 1st Time Spokane 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

Spokane va Home Loans

100% Financing for Spokane 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

Spokane Conventional Home Loans

Flexibility for Spokane 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

Spokane Jumbo Home Loans

Spokane 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

Spokane USDA Home loans

100% Rural Spokane 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

Spokane Native american Home Loans

Spokane 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

Spokane Manufactured Home loans

Great Alternative Spokane 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

Spokane Reverse Mortgage Loans

Your Spokane 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

Spokane Non QM Home loans

Making Spokane 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

Spokane One Time Close Home Loans

Build Your Spokane 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

Spokane Refinance Mortgage loans

Spokane 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

Spokane Cashout Mortgage Loans

Spokane 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

Spokane 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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