Mortgage in Washington
Washington State has seen a population explosion in recent years. Fuelled mostly by a tech boom that has invigorated the economy, Washington is attracting new residents at a record pace. Unfortunately, the influx of people has boosted the median home price in Washington significantly. It now sits at about $339,000 , well above the national median. Therefore, before accepting that job with a big salary, make sure that the move is worth it after you factor in housing. You can verify that with our Washington mortgage calculator!
Washington Mortgage Calculator: Choose Your Loan Type
Whether you're moving to Washington for the first time or looking to relocate within the state, you should know that there are three loans available.
- Washington conventional mortgage: With pricier housing and higher salaries in Washington, conventional mortgages are the most common loan type. Most people buying in large areas - like Seattle - will wind up with jumbo loans. This term means that banks will require at least 20% down and ask for a 700+ credit score. If you find a home under the conforming loan limit, as little as 3% down and a 620 credit score can get you a mortgage.
- Washington FHA mortgage: Purchasing with an FHA loan is tricky given Washington's elevated housing prices. However, if you find an eligible property, you can put 3.5% down so long as you have a 580 or higher credit score.
- Washington VA mortgage: Military personnel and veterans have access to one of the country's best mortgage types. A VA mortgage receives backing from the Veterans Administration. As such, it requires no money down and has no PMI.
These loans are available for all current and future Washingtonians. If you're a first-time homebuyer, the state has some additional incentives that you can have.
First-Time Homebuyers in Washington
The Washington State Housing Finance Commission is responsible for administering the programs that help first-time buyers achieve their homeownership dreams.
The Home Advantage program helps buyers obtain a loan with a reasonable interest rate on a 30-year mortgage. Buyers with this loan are also eligible for the down payment assistance program.
Eligibility Criteria: Income and purchase price limitations apply. Borrowers must also attend a homebuyer education seminar.
Home Key Opportunity also provides 30-year fixed-rate mortgages at a lower interest rate than what you would find on the market. For those with an area median income of less than 80%, an extra discount applies.
Eligibility Criteria: Borrowers must attend a homebuyer class. Purchase price and income restrictions apply. Additionally, the program requires you to use a participating lender.
Depending on the underlying mortgage, Washington state offers up to $15,000 as a deferred second loan for a down payment. Additionally, some cities, like Seattle, provide tens of thousands more to buy a home. These loans do carry interest, but the rate is minimal.
Eligibility Criteria: To qualify for this assistance, you typically must have one of the loans above. However, there are instances, like HomeChoice, which assist those with a disability or a disabled family member. Those loans do not require the borrower to use one of the mortgages above.
Washington Mortgage Calculator: See What You Can Afford
The Evergreen State is attractive for many reasons. With a robust economy, some of the best beer and coffee you'll find, and a culture unlike anywhere else in America, Washington has long been a dream destination for many. If you're interested in moving to Washington, see what you can expect to pay for housing with our Washington mortgage calculator!