FHA Mortgage Loans in Washington
Buying a home in Washington is a commendable achievement. You get to live in a splendid piece of land in the modern world. Washington state is not only having natural scenic beauty and also it is an epitome of commercial success making it suitable for living while making a fine earning.
If you are going to buy a Washington home and looking for a suitable mortgage loan option, then FHA loans provide a remarkable opportunity to buy a home in Washington State. The term FHA loan stands for Federal Housing Administration (FHA) approved loan. It is a great loan option for borrowers who may not have their credit score convincing enough or not so financially sound to pay the required down payment amount to secure a conventional mortgage home loan.
Benefits of FHA Loans in Washington
The Federal Housing Administration (FHA) is one of the most popular mortgage home loans in Washington and has been helping average American home buyers to buy homes since the 1930s. The major reason that made FHA loans one of the most sought-after house financing options is the low down payment facility.
FHA loans in Washington allow significantly low down payment in comparison to other mortgage loans, borrowers can go as low as 3.5% for the down payment. Also, there are less stricter requirements that need to be fulfilled by the borrower in comparison to conventional loans. You can qualify for an FHA loan even with a notably low credit score, that is, as low as 500.
Requirements for FHA Loans in Washington
While seeking FHA loans for buying a home in Washington, you will have to fulfill certain criteria. You should be aware of them and need to carefully follow them to ensure a quick and smooth loan approval process. Here are some of the major requirements to get FHA loans in Washington.
- Income History: You need to show that you have a steady job or constant income source. Thus, proof of employment for 2 years is required. Also, you are expected to submit your 2 or 3 latest bank statements and tax returns. Your sound financial track record assures mortgage lenders that dealing with you will get them the returns in the stipulated time, thus they provide you loan easily.
- Credit Score : As we have mentioned above, borrowers may pay as low as 3.5% of the value of the home as a down payment while taking FHA loans in Washington, but as a borrower, you essentially need to have your credit score of at least 580 or above. Also, the higher your credit score, the better your chance will be to get approval on your application for mortgage loans.
- Debt-to-income ratio(DTI) : Your debt-to-income ratio signifies your financial security status and it should be around 40% or less. A higher DTI ratio hampers your chances of getting FHA loans as it signifies that less likely you'll be able to pay down your debt. In case of the higher DTI ratios, you may have to compensate with other financial aspects like your money savings, brilliant job history, or an excellent credit score.
Want FHA Loans in Washington Now?
If you would like to find out if you are eligible for an FHA loan, we at RightNowMortgageLoans can help you with consultation and meet with Washington mortgage lenders. You can accomplish your dream of buying a home with the lowest rate mortgage loans in Washington. Consult our experts now, and empower yourself in mortgage-related aspects with our expertise.