Tacoma Purchase Home Loans

Are you thinking about buying a house in the Tacoma area? Capital Home Mortgage can make it possible with a loan to purchase a property. Homebuyers have the flexibility to select the home loan program that is most suitable for their income and level of financial responsibility, thanks to the variety of mortgage solutions that we offer. 

Tacoma Purchase Loan Programs

Let our Tacoma home loan experts help you find the best mortgage solution. The following are some of our purchase loan programs in Tacoma:

• Conventional Loans

Conventional loans are the most prevalent form of mortgage financing, not guaranteed by the federal government. Private lenders offer conventional loans compliant with Fannie Mae and Freddie Mac’s lending standards. Conventional loans can either be conforming or non-conforming.

• Conforming Loans

A conventional conforming loan is a type of mortgage loan in the United States that adheres to the requirements established by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). These loans meet specific criteria, such as the Federal Housing Finance Agency’s (FHFA) maximum loan size, loan-to-value ratio, debt-to-income ratio, credit score and history, documentation requirements, etc. The conforming loan limit for one-unit single-family homes in Tacoma for 2023 is $977,500.

• Non-Conforming Loans

Non-conforming loans in Tacoma are mortgages that do not comply with the guidelines established by government-sponsored enterprises Fannie Mae and Freddie Mac. They cannot be sold to GSEs. These loans may not adhere to various guidelines, including maximum loan amounts and properties, down payment, and credit requirements. These loans typically have higher interest rates than conforming mortgages.

• FHA Loans

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA). FHA loans were intended to allow average Americans to own a home. This loan is designed to help lower-income and first-time homeowners qualify for a mortgage by providing more flexible credit requirements and demanding a lesser down payment than traditional loans. The minimal down payment for an FHA loan is usually 3.5% of the home’s purchasing price.

FHA loans are issued by FHA-approved private lenders. The FHA guarantees a portion of the loan if the borrower defaults, enabling the lender to offer the borrower more favorable terms. Specific requirements must be met to qualify for an FHA loan in Tacoma. For instance, to qualify for the 3.5% down payment, a credit score of 580 or higher is required. If you have a credit score between 500 and 579, you may still be eligible for an FHA loan, but you must make a 10% down payment. In addition, your debt-to-income ratio should be at most 43%.

The FHA loan limit for 2023 in Tacoma for a single-unit family home is $977,500.

• VA Loans

A Tacoma VA home loan is a mortgage option available to current or former United States Armed Forces members and their families who intend to reside in Tacoma, Washington. The United States Department of Veterans Affairs offers the loan program. It provides several benefits designed to make purchasing a property more affordable for service members, veterans, and their families.

A Tacoma VA home loan is advantageous for military service members and veterans seeking to purchase a home in Tacoma, WA, as it provides favorable terms, financial advantages, and comprehensive assistance throughout the application and homebuying process.

The primary benefits of this form of loan include no down payment, lower interest rates, and no mortgage insurance requirements. The VA guarantees a portion of the loan amount, eliminating the need for the Veteran to make a down payment. 

• USDA Loans

The USDA Rural Development Single Family Housing Programs enable families and individuals to purchase, construct, or renovate affordable homes in rural America. Under certain conditions, these programs allow qualifying individuals and families to buy or build a new single-family home with no money down, update their existing home, or refinance their current mortgage.

To be eligible for these loans, applicants must meet specific criteria, including being without adequate, safe, and sanitary housing, being unable to obtain a loan from another source on reasonable terms and conditions, must occupy the property as their primary residence, having the legal capacity to incur a loan obligation and ability to make monthly payments, and meeting citizenship or eligible noncitizen requirements.

• Non-Qualified Mortgage Loans

Non-qualified mortgage loans are mortgage loans that do not always follow the strict underwriting requirements established by government agencies or traditional loan programs. Borrowers can qualify for these loans using alternative methods rather than the traditional income verification process that most loans require. These loans are exempt from the Consumer Financial Protection Bureau’s (CFPB) requirements for qualified mortgages.

Non-QM loans are designed to provide a mortgage option to individuals who do not qualify for conventional mortgage programs, such as self-employed individuals, retirees, and investors. Their underwriting procedure is adaptable, accommodating a variety of financial circumstances that may not satisfy the stricter requirements for a qualified mortgage.

• Jumbo Loans 

Jumbo loans are non-conforming mortgages that fund amounts that exceed the conforming loan restrictions established by Fannie Mae and Freddie Mac, two government-sponsored organizations that acquire and guarantee mortgages from lenders. This cap is $977,500 in Tacoma for 2023. A jumbo mortgage is a home loan that exceeds this maximum.

Jumbo loans typically have higher interest rates than conforming mortgages because they pose a greater risk to lenders. The precise rate could be affected by several factors, such as the borrower’s credit score, property type, appraised value, and debt ratios.

Apply for a Home Purchase Loan in Tacoma

Capital Home Mortgage can help if you want to buy a home in Tacoma. We provide several significant advantages to Tacoma home buyers. For starters, a home mortgage includes payment flexibility. Second, given Tacoma’s continually rising property prices, it offers the opportunity for capital appreciation, which could improve the value of a homeowner’s investment over time. Finally, by choosing Capital Home Mortgage, buyers may benefit from current Tacoma housing market trends, such as increasing inventory and slowing price growth in 2023, which have created additional possibilities for potential buyers.

Call (803) 600-0088 to speak with our Tacoma Home Loan Specialists and get started on your path to homeownership!