Loan Programs
FHA
Conventional
Conventional
Designed to help low to moderate-income borrowers, with less restrictions
Loan Programs
FHA Loan
FHA loans are the most popular amongst first-time homebuyers due to it having the most flexible loan package.
- Accepts credit scores as low as 580
- Down payment as low as 3.5%
- Debt-to-income (DTI) up to 50%
- King, Pierce, and Snohomish counties $891,250 maximum loan limit
- Must be primary residence and owner-occupied
- Down payment assistance programs are available
- Down payment can be 100% gift
Conventional Loans
Conventional loans are mortgages that are not backed by a government agency
- Minimum credit score of 620
- Minimum down payment of 5% or 3% for first-time homebuyer
- Debt-to-income (DTI) up to 50%
- King, Pierce, and Snohomish counties $891,250 maximum loan limit
- Can be used for Primary, Secondary, or Investment property
- Down payment assistance programs available
- No mortgage insurance with a 20% down payment
- Down payment can be gifted in most circumstances
VA Loans
To thank those who are currently enlisted and have honorably served our country
- Accepts credit scores as low as 580
- Down payment as low as 0%
- Debt-to-income (DTI) of no more than 65%
- Maximum loan limit $2 million
- Borrower may purchase new primary residence while retaining the current primary; permitted for 2 VA loans with entitlement
Jumbo Loans
King, Pierce and Snohomish counties currently have a maximum of $891,250 for conforming loans, anything above this is considered a non-conforming loan that exceeds the conventional loan limit. Due to the higher loan amount, jumbo loan requirements will be more difficult to satisfy.
- Minimum credit score of 700
- Along with 2 years of tax documentation you will also need to show proof to cover six months' worth of mortgage payments in liquid assets
- DTI (Debt-to-income) ratio ideally around 36% or less due to the scale of this loan
- Down payment from 15-30%
- Tend to have higher closing cost than traditional mortgages
Rehab Loans
Standard 203(k)
- May be used to purchase or refinance
- May be used for remodeling and/or structural repairs
- Minimum rehabilitation cost of $5,000 with no max
- Must use a 203k consultant
- Landscaping allowed
- Hardscaping allowed
- Maximum completion time of 180 days(6 months)
Limited 203(k)
- May be used to purchase or refinance
- May be used for remodeling
- CANNOT be used for structural repairs
- Maximum rehabilitation of $35,000 with no minimum
- 203(k) consultant NOT required
- Landscaping allowed
- Hardscaping NOT allowed
- Maximum completion time 90 days(3 months)
DSCR Loans
Debt-Service Coverage Ratio
- No employment or personal income verification required
- Loan is qualified subject to property's income
- Gift funds of 10%
- First-time investors up to 75% loan-to-value
- Can close in LLC name
- Down payment as low as 20%
- Generally a 1.25 ratio is used to qualify (Annual Gross Income/Debt Obligations = DSCR), which means the property generates 25% more income than what is necessary to repay the loan