FHA Lenders in Washington For Bad Credit With 500 FICO

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this article, we will cover and discuss choosing FHA lenders in Washington for bad credit with low credit scores. Not all FHA lenders in Washington for bad credit have the same lending guidelines on FHA loans.  Washington FHA Loan Requirements and Guidelines for 2022 are more lenient than any other loan program. The housing market in Washington state is booming. Home prices in all counties throughout the state of Washington are higher than the national norm. However, Washington home prices are substantially lower than California home prices.

What Is The Lowest Credit Score FHA Will Accept In Washington

A large number of Californians are priced out of the housing market due to high home prices. Many Californians are relocating to Washington state due to the state home prices being more affordable. The state of Washington is known for its beautiful landscape. The extraordinary mountain ranges and millions of tall trees make areas of the state look like Heaven. Its beautiful weather in all four seasons is another element that attracts new families to call Washington state home.

Can I Get Approved For An FHA Loan With 500 FICO In Washington?

The strong economy of Washington state attracts many businesses and corporations in the technology, social media, finance, education, and finance industries

One of the reasons FHA loans are very popular is because homebuyers can qualify for an FHA loan in Washington with credit scores down to 500 FICO. Many migrants who are moving to Washington are eligible to qualify for an FHA loan with a 500 FICO. However, homebuyers with under 580 credit scores need a 10% down payment versus a 3.5% down payment for homebuyers with at least a 580 FICO. The strong economy of Washington state attracts many businesses and corporations in the technology, social media, finance, education, and finance industries. Three of the world’s largest companies, Microsoft, Google, and Amazon are headquartered in Washington and have many locations based throughout the state. Just these three global companies employ more than 200,000 workers in the state. Aircraft maker Boeing has over 100,000 employees in the state.

Best FHA Mortgage Lenders For Bad Credit in Washington

Many home buyers with bad credit from California are moving to Washington State due to the lower cost of homes. Home prices are substantially less expensive in Washington than in California. Many counties in Washington are high-cost areas where homebuyers can qualify for FHA Jumbo loans in high-cost areas. The state of Washington has a large military base just south of Tacoma, Washington at Joint Lewis-McChord. Joint Base Lewis-McChord has over 56,000 military and civilian workers stationed at the base a tens of thousands of others off base in nearby communities.

FHA Loans With Bad Credit in Washington

Many home buyers with bad credit do not want to wait to rebuild or repair their credit to buy homes. The demand for homes is creating home prices to skyrocket. If they do not act on a home purchase now, they will get priced out of the housing market. The great news is homebuyers can qualify for FHA loans with bad credit in Washington.

Do I Have To Pay Unpaid Charged Off Accounts To Get FHA Approval in Washington?

Outstanding collections and charged-off accounts do not have to be paid off. Tens of thousands of families are leaving high-taxed states and locating to Washington due to its no income taxes, strong growing economy, beautiful landscape, beautiful weather, lower cost of living, affordable housing, and great job opportunities. Washington state is one of seven states without income taxes which is a great seller for attracting new taxpayers to the state. Being one of the seven states with no state income taxes is a huge enticement for taxpayers in high-taxed states to consider relocating to Washington.

FHA Loan Down Payment Requirements in Washington

Homebuyers can qualify for standard and high-balance FHA loans with a 3.5% down payment. Homebuyers with credit score lower than 580 and down to 500 FICO need a 10% down payment. The coronavirus outbreak has changed many jobs to remote job positions. Remote workers no longer have to report to a brick-and-mortar location for work daily. Therefore, remote workers can now live in any state in the nation. For example, many high-paid workers in California could never purchase a home in California due to the home prices averaging $640,500 in the state of California. These workers were priced out of the housing market. However, as remote workers, they can now leave California and relocate to other states with affordable housing and lower taxes like Washington state.

Do All Mortgage Lenders in Washington Have The Same FHA Requirements?

Many people relocating to Washington state prefer buying a home in the state rather than renting. Due to the strong housing economy and historic low mortgage rates, there have never been so many homebuyers as we have seen in recent years in Washington. FHA loans are the most popular loan program in Washington. Washington FHA loan requirements are more lenient than any other home mortgage loan program for first-time homebuyers, borrowers with lower credit scores, and borrowers with higher debt to income ratios. FHA loan limits are higher in high-cost counties in Washington.

Most Expensive Places to Live in Washington State

Below are the ten most expensive places in Washington state:

  1. Lynwood
  2. Bellingham
  3. Seattle
  4. Mountlake Terrace
  5. Issaquah
  6. Pullman
  7. Woodinville
  8. Shoreline
  9. Renton
  10. Tukwila

Least Expensive and Most Affordable Place to Live in Washington

Below are the ten most affordable places with the most affordable housing prices:

  1. Quincy
  2. Ephrata
  3. Toppenish
  4. Hoquiam
  5. Grandview
  6. West Richland
  7. Wapato
  8. Pasco
  9. Aberdeen
  10. Sunnyside

Gustan Cho Associates has a variety of home loan programs besides FHA, USDA, VA, and conventional loan programs for Washington homebuyers. GCA Mortgage has dozens of non-QM loan programs such as no-doc loans, bank statement loans for self-employed borrowers, asset depletion, and other specialty loan programs for Washington homebuyers.

FHA Loan Pre-Approval For Homebuyers With Poor Credit

The role of HUD, the parent of FHA is to promote homeownership for first-time homebuyers with modest incomes and less than perfect credit. HUD is the federal agency in charge of lending guidelines for FHA loans since the 1930s. Washington FHA loan requirements and guidelines are the most popular loan programs in the state due to its lenient agency mortgage guidelines for first-time homebuyers, borrowers with bad credit and lower credit scores, and borrowers relocating to Washington from other states with new employment.

Can I Qualify For An FHA Loan With Collection Accounts in Washington?

credit scores down to a 500 FICO are eligible to qualify for an FHA loan in Washington state with an FHA loan

Collections accounts and charged-off accounts do not have to be paid to qualify for FHA loans. As mentioned earlier, most first-time homebuyers and borrowers with less than perfect credit choose FHA loans due to the lenient requirements of Washington FHA loan requirements and guidelines for homebuyers. Washington FHA loan requirements are substantially more lenient than other loan programs for borrowers with prior bad credit and lower credit scores.

FHA Loans With 500 FICO in Washington State

Homebuyers with credit scores down to a 500 FICO are eligible to qualify for an FHA loan in Washington state with an FHA loan. However, a 10% versus a 3.5% down payment is required for borrowers with a 500 to 579 credit score per HUD agency guidelines. The following are the main Washington FHA loan requirements and guidelines on FHA loans for homebuyers in the state of Washington.

FHA Loans After Bankruptcy in Washington

Homebuyers can qualify for an FHA loan two years after the Chapter 7 Bankruptcy discharge date. The minimum credit score required on a 3.5% down payment home purchase FHA loan in Washington is 580 FICO. Higher credit scores will help you get a better rate on FHA loans. Our loan officers at Gustan Cho Associates are experts in helping borrowers boost their credit scores with some quick fixes. You do not need to hire a credit repair company to qualify for a mortgage. The team at GCA Mortgage can help you and guide you in maximizing your credit scores. Oftentimes, a credit repair company can do more damage than good in qualifying for a mortgage.

How Can I Qualify For an FHA Loan With Under 580 Credit Score and Down To 500 FICO?

Washington FHA loan requirements allow borrowers with credit scores down to a 500 FICO to be eligible to qualify for an FHA loan. Per HUD agency guidelines, for borrowers with credit scores between 500 and 570 FICO, a 10% down payment is required.

Qualifying For An FHA Loans With The Best FHA Mortgage Lenders in Washington For Bad Credit

Besides the 3.5% down payment requirements, the following list is the agency HUD agency mortgage guidelines for borrowers:

  • The maximum debt to income ratio is 46.9% front-end and 56.9% back-end to get an approve/eligible per automated underwriting system on FHA loans
  • Borrowers do not have to pay outstanding collections or charged-off accounts to qualify for an FHA loan
  • Non-occupant borrowers that are related to the main borrower by law, marriage, or blood is allowed for borrowers with high debt to income ratio
  • There is no limit on the number of non-occupant co-borrowers you can add
  • HUD allows non-occupant co-borrowers who are not related to the main borrower by law, marriage, or blood but the down payment requirement increases to a 25% down payment
  • Gift funds are allowed for the down payment and closing costs
  • The seller can offer up to a 6% seller concession to the home buyer’s closing costs

The Best FHA Lenders in Washington For Manual Underwriting

Manual underwriting is allowed on FHA loans as long as the borrower qualifies for manual underwriting guidelines. Not all lenders can do manual underwriting on FHA loans. If you are shopping for FHA lenders in Washington for bad credit borrowers, GCA Mortgage are experts. Over 75% of our clients are folks who could not qualify at other lenders. Not all FHA lenders in Washington for bad credit have the same rates. You can shop for FHA lenders in Washington for bad credit that have competitive rates for lower credit scores.

FHA Loans After Chapter 13 Bankruptcy In Washington

There is a two-year waiting period after the Chapter 7 Bankruptcy discharge date. Borrowers can qualify for an FHA loan three years after foreclosure, deed in lieu of foreclosure, short sale. Homebuyers can qualify for an FHA loan during a Chapter 13 Bankruptcy repayment plan on a manual underwrite with trustee approval.

FHA Loans During Chapter 13 Bankruptcy Repayment Plan in Washington State

There is no waiting period after the Chapter 13 Bankruptcy discharged date. If the Chapter 13 Bankruptcy discharge is not seasoned for two years, it needs to be a manual underwrite. Gustan Cho Associates is a mortgage company licensed in multiple states with no lender overlays on FHA loans. We have a big presence in Washington and are experts in helping first-time homebuyers, and borrowers with lower credit scores and less than perfect credit.

How Do I Buy a House in Washington With Poor Credit?

No Lender Overlays On Government And Conventional Loan

Are you planning on buying a home in the state of Washington? Do you need to apply for a mortgage with a mortgage company licensed in Washington with no lender overlays on FHA loans? Gustan Cho Associates is a mortgage company licensed in multiple states with a national reputation for its no lender overlays on government and conventional loans business model.

FHA Loans With High Debt To Income Ratio in Washington

The team at Gustan Cho Associates are experts working with first-time homebuyers, homebuyers who recently graduated from high school, trade school, college, or graduate and/or professional schools. Gustan Cho Associates are also experts in helping folks who are relocating from other states to Washington. We are very familiar with working with borrowers who have a job transfer, a new job, remote workers, or borrowers who have recently got denied a mortgage at another lender. Gustan Cho Associates are expert FHA lenders in Washington for bad credit.

How To Apply For An FHA Loan With Bad Credit and Low FICO In Washington

If you are looking for the best FHA lenders in Washington for bad credit, look no further. GCA Mortgage offers FHA loans throughout the state of Washington. Gustan Cho Associates is licensed in 48 states and has a strong business presence in the Pacific Northwest including, Washington, Oregon, Arizona, Oklahoma, Idaho, Montana, Wyoming, North Dakota, South Dakota, Colorado, and California. Originating, processing, underwriting, and closing FHA loans is one of our strongest expertise but we offer a wide variety of traditional and non-QM mortgage loan programs and products with flexible qualification requirements. Please contact us at Gustan Cho Associates at 262-716-8151 or email us at [email protected] Text us for a faster response. Or email us at [email protected] The team at Gustan Cho Associates is available 7 days a week, on evenings, and weekends,