Friday, October 1, 2010

Seattle FHA Jumbo Loan Limits | Seattle FHA Mortgage Lender Explains FHA Financing

Washington FHA Loans are available up to $567,500 with just 3.5% down payment in high cost counties. The FHA 2010 Loan Limit for Washington is up to $567,500. Seattle FHA Mortgages that exceed $417K up to $567,500 are referred to as FHA Jumbo or FHA High Balance loans. FHA Loan Limit Worksheet

Seattle FHA JUMBO Mortgage Guidelines
• FHA Home Loans require a 3.5% down payment
• The Washington FHA Loan Limit of $567,500 does not have to include the UFMIP
(FHA's Upfront Mortgage Insurance Premium, which is usually financed into your loan amount)
• FHA Loans allow non-occupying co-borrowers such as parents and siblings.
• The Seller can pay up to 3% of your closing and settlement costs
• The minimum score for most FHA Home Loans is 620 (even on FHA High balance or FHA Jumbo).
• You may receive a gift of funds for your down payment and closing costs
• FHA Condominium requirements include at least a 51% owner-occupancy ratio, no outstanding lawsuits against the Homeowners Association (condo guidelines have changed, so you may want to call me for details)
• I also offer FHA 203K Rehab and FHA 203K Streamline Rehab loans to purchase a distressed home that needs repairs

Below I've Outlined the Difference Between FHA and Fannie Mae Conventional Financing:

Loan Amount: $500,000
Down Payment: $17,500
Min. Credit Score: 620
Credit Score Used For Example: 700
Interest Rate: 4.625%
Monthly PMI: $362
Total Mortgage Payment: $3,335

FANNIE – Conventional
Loan Amount: $500,000
Down Payment: $50,000
Min. Credit Score: 700
Credit Score Used For Example: 700
Interest Rate: 4.875%
Monthly PMI: $431
Total Mortgage Payment: $3,280

As you can see with the breakdown above, the FHA scenario is much more “flexible” in regards to a lower down payment, lower credit score requirement, and lower interest rate. Please note that with a higher credit score, the Fannie Mae Conventional option may be a better fit as there are split-PMI options that make the conventional option less expensive. I recommend talking to me about scheduling a Mortgage Analysis to compare all options available per you specific credit application.

I can be reached at
Dan Keller, FHA Mortgage Banker
(425) 350-7136