Washington FHA Loan Requirements For Homebuyers

This Article Is About Washington FHA Loan Requirements For Homebuyers

Washington FHA Loan Requirements and Guidelines 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. 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.

Washington Attracting More New People Than Any Other State In The United States

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. 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. 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.

Remote Wage Workers Locating To Washington Due To Affordable Home Prices And Booming Economy

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. 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.

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

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.

The Role Of HUD And FHA For Washington Homebuyers

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.

Washington FHA Loan Requirements And Agency Guidelines For Homebuyers

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. 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.

Washington FHA Loan Requirements On Credit Scores

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. 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.

FHA Loan Requirements And Guidelines

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, 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
  • Manual underwriting is allowed on FHA loans as long as the borrower qualifies for manual underwriting guidelines
  • There is a two year waiting period after Chapter 7 Bankruptcy discharged 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
  • There is no waiting period after 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 Washingon and are experts in helping first-time homebuyers, and borrowers with lower credit scores and less than perfect credit.

Applying For An FHA Loan In Washington With A Lender With 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. 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. GCA Mortgage offers FHA loans throughout the state of Washington. Gustan Cho Associates is licensed in most of the 50 states and has a strong business presence in the Pacific Northwest including, Washington, Oregon, Colorado, 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, evenings, and weekends,

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