Mortgage in Washington
Washington State has seen a population explosion in recent years. Fueled 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 pushed the median home price in Washington up significantly. It now sits at about $339,000 , well above the national median. Before accepting that job with a big salary, make sure the move is worth it once you factor in housing. You can verify that with our Washington mortgage calculator!
Mortgage Options in Washington
Whether you're moving to Washington for the first time or relocating within the state, you should know about the three available loan types.
- 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, meaning banks will require at least 20% down and 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 as 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 is backed by the Veterans Administration, so it requires no money down and has no PMI.
These loans are available to all current and future Washingtonians. If you're a first-time homebuyer, the state offers some additional incentives.
First-Time Home Buyer Programs in Washington
The Washington State Housing Finance Commission administers 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 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. 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, some programs, like HomeChoice, assist those with a disability or a disabled family member and 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!
