Washington Mortgage Overview
Washington is home to 7.8 million people
and is known as the Evergreen state because of its vast amount of evergreens.
The average home price in Washington is $339,000 and the average mortgage
payment is around $1,800.
If you're ready to buy a home in
Washington, here are your loan options.
Washington conventional loans
is traditional financing. You don't need a 20 percent down payment. You can get
a loan with 3 percent down as a first-time homebuyer or 5 percent if you've
owned a home before. You'll need a 660 credit score and low debt to income
ratio of around 36 percent to qualify. Conventional loans charge PMI but only
until you owe less than 80 percent of the home's value.
Washington FHA loans
FHA loans are for
borrowers with less than perfect credit. You can get an FHA loan with a 3.5
percent down payment with a credit score as low as 580. You can even get a loan
with a 500 - 579 credit score with a 10 percent down payment. You may use down
payment assistance in some cases, but some lenders require you to invest your
own funds too. FHA loans have mortgage insurance for the life of the loan.
Washington VA loans
VA loans are for veterans.
If you served 90 days during wartime or 181 days during peacetime, you may be eligible.
VA loans offer 100 percent financing and only require a 620 credit score. VA
loans have flexible debt ratio guidelines, allowing debt ratios up to 50
percent. VA loans don't require mortgage insurance but do have an upfront
Washington USDA loans
USDA loans are for borrowers
who don't qualify for other financing options, including low to moderate-income
families. You'll need a 640 credit score and a max 41 percent debt ratio. You must
live within the USDA boundaries, but the USDA has loose guidelines regarding
Programs in Washington
The Home Advantage program
offers low mortgage rates and flexible terms for first-time homebuyers. You can
combine it with the down payment assistance program for even more help buying a
Home Advantage Down Payment Assistance
use the Home Advantage loan program, you can secure the DPA too. Your household
income must be less than $145,000 and you need a 620 credit score. Most
homebuyers can obtain up to $10,000 in down payment assistance.
The House Key Opportunity Program
is for low to moderate-income families. Each county has a separate loan limit
and loan requirements. All eligible borrowers must attend homebuyer education
courses to qualify.