Washington FHA Loan

The Federal Housing Authority (FHA) loan is a federal mortgage loan that was created in the 1930s with the aim of improving the housing market. Today, this loan program remains active to help homebuyers and homeowners across the states, including Illinois.

e-Finance Mortgage LLC offers FHA loan services at competitive rates and terms. This loan option is more beneficial than most traditional ones, as it diminishes the hindrance of high credit score and down payment requirements when purchasing homes.

Washington FHA Loan Requirements

  • A credit score of 580 is the minimum credit limit to qualify for application and be eligible to receive the loan. Homebuyers with a credit score between 500 and 579 may qualify, but have to make a higher down payment.
  • e-Finance Mortgage offers 3.5% of purchase price as minimum down payment, only if your credit score does not go below 580.
  • A debt-to-income (DTI) ratio of 43% is another primary requirement, though a ratio of up to 50% might be acceptable in special cases.
  • Potential properties in Illinois must meet structural safety standards before deemed acceptable by applicable authorities.

Loan limitations differ depending on the county is question. Washington’ high-cost area loan limits range between $271,000 and $636,500.

In Washington, two mortgage insurance premiums (MIP) have to be paid during the FHA loan process:

  1. The first premium is the up-front premium of 1.75% (of the purchase price). FHA auto-adds this payment your total mortgage.
  2. The second premium is actually divided as monthly premiums, which amounts up to the total mortgage payment. These premiums range from 0.45% to 1.05% of yearly mortgage balance. Factors that determine these premiums include mortgage length, FHA loan amount and loan-to-value (LTV) ratio.

Washington FHA Loan Benefits

By guaranteeing home loans, FHA allows home buyers in Washington to gain make property purchases even with low credit score and minimum down payments. For instance, a homebuyer with a credit core of 580 can qualify for a FHA loan with only 3.5% down payment.

Apart from enhancing borrowing powers of qualified applicants, the FHA loan also reduces risks for lenders.

Apart from basic FHA loan services, e-Finance Mortgage LLC also provides cash-out refinancing options and streamlines refinancing services. Additionally, homebuyers opting for renovations when purchasing a property can combine all expenses in a single mortgage by acquiring FHA 203k loan.

We offer financing and re-financing FHA loan options as well as special loans throughout Washington. To start your FHA loan application process, contact e-Finance Mortgage LLC today!