Washington FHA Loans
Washington State is a wonderful place to buy a home, and if you're thinking of purchasing a house and relocating, you've made a great decision. The economy is in the perfect position for buyers right now- economic downturns tend to drive housing prices to lower levels than they've been in years and the current situation is no exception. Sellers are motivated to aggressively negotiate their asking price or make concessions at closing, either by doing repairs, providing a home warranty, or paying for part of the closing costs on the loan.
But if you're not sure that you're in a position to buy, it can often feel like an opportunity is passing you by. However, while you may assume that you'll need a perfect credit score and thousands of dollars in the bank for a down payment, you might be pleasantly surprised to find that a Washington FHA loan can eliminate the need for both of those potential roadblocks.
FHA Loan Benefits
While Washington FHA loans can be obtained at most lending institutions, they are remarkably different than the traditional loan programs you probably think of when you consider getting financing for a home purchase. Most loans you can receive through your bank's financing office are geared towards borrowers with extensive and unblemished credit histories. Additionally, traditional loan programs generally require 20% of the purchase price as a down payment which can mean that for a $200,000, you would need to come up with $40,000 in cash before your application would even be considered. And there are closing costs on traditional loans which also need to be paid�to the tune of $6,000 to $8,000. In contrast, Washington FHA loans only require 3% as a down payment ($6,000 instead of $40,000) and allow borrowers to roll the closing costs into the term of the loan. Credit terms are also much more lenient, and borrowers with poor credit history and even bankruptcy can be approved for a Washington FHA loan.
FHA Loan Limits in Washington
If you feel you would qualify for a Washington FHA loan, check with your lender regarding qualification and the current maximum loan amount for your area. The baseline maximum of $271,000 per single family dwelling applies in most areas, though some high cost of living counties have higher limits. Multi-family dwellings also have differing limits based on the number of units in the dwelling.