This week, Jim Reppond of Coldwell Banker Danforth and I sat down to discuss getting preapproved for a mortgage and why it’s so important for today’s hot Seattle’s real estate market.
Pardon me!
May 19, 2013 by
UPDATE May 21, 2013: Everything is looking good. Please let me know if you notice anything wonky. Thank you!
I’m in the process of moving my blog to a new host. We’re experiencing a few hiccups and should be back to “normal” soon.
Thank you!
Updated Income Limits for USDA Zero Down Home Loans
February 13, 2013 by 2 Comments
USDA recently published updated income limits for their zero down mortgage program which is available in rural areas. Other mortgage programs, like FHA or conventional, has loan limits which limits availability. USDA does not have loan limits, the program is restricted by household income.
USDA offers a government backed program that allows zero down payment on homes that are in a designated rural community for families earning less than a certain income. A majority of Washington State single family residences (homes and condos) qualify…of course if you live in metropolitan areas like Seattle or Bellevue, odds are your home will not. However, if you’re considering areas like Duvall, parts of Maple Valley, Vashon or Bainbridge Island, it may qualify for zero down financing.
To qualify, families must be without “adequate housing” (may not own a home or adequate home), must have reasonable credit history and be able to afford the mortgage (29/41 is the debt to income ratio guidelines).
Income limits vary by county and the entire household income is considered (not just the primary borrowers or those borrowers on the mortgage) for determining if the income meets the guidelines. This is separate from income considered for “debt-to-income” ratios. USDA loans allow incomes up to 115% of the median income for the area. Income limits vary on household size from 1-4 person or 5-8 person.
As of the publishing of this article, in Washington, the income limits by county are:
- King and Snohomish Counties: 1-4 Person $93,450 | 5-8 Person $123,350
- Pierce County: 1-4 Person $82,450 | 5-8 Person $108,850
- Island County: 1-4 Person $89,550 | 5-8 Person $118,200
- Kitsap County: 1-4 Person $86,950 | 5-8 Person $114,750
- Thurston County: 1-4 Person $88,900 | 5-8 Person $117,350
- Clark and Skamania Counties: 1-4 Person $83,950 | 5-8 Person $110,800
- San Juan County: 1-4 Person $78,050 | 5-8 Person $103,050
- Whatcom County: 1-4 Person $80,300 | 5-8 Person $106,000
- Benton and Franklin Counties: 1-4 Person $78,000 | 5-8 Person $102,950
- Skagit County: 1-4 Person $78,000 | 5-8 Person $102,950
- Asotin County: 1-4 Person $74,750 | 5-8 Person $98,650
- All other Washington counties: 1-4 Person $74,900| 5-8 Person $98,850
You can check current USDA income limits by visiting the USDA site (clicking here)…be sure to click the “guaranteed” option. Income limits can and do change. You can also use USDA’s income eligibility calculator which will factor in deductions to income, select the “guaranteed” results (not “direct”).
Income used to determine if a family is under the household income limits includes all those (18 years and older) who will be living in the home regardless of whether or not they’re on the mortgage. Incomes of children over 18 who working AND who are full time students are not factored. Here is more information of how USDA loans calculate household income.
Once you’ve determined that you meet the household income limits, the next step is to see to see what communities in your area are eligible for USDA financing. You don’t have to go too far from Seattle or Bellevue to find homes that do qualify for this type of mortgage. Using the USDA site, under “Property Eligibility” click “Single Family Dwelling”. From there you can either enter a specific address or click on the map to narrow down your search.
Sellers and real estate agents who are working in neighborhoods that qualify should be sure to include this program as an option they’ll consider for financing on their offers.
This map is as of the publishing of this post. Areas that are outside of the peachy orange shade are eligible for USDA zero down home loans.
I’m pleased to offer USDA financing as an option for borrowers who meet the criteria. If you have any questions regarding USDA or other mortgage programs for financing homes located anywhere in Washington State, please contact me, I’m happy to help! Click here for a mortgage rate quote for homes located anywhere in Washington.
I’m taking a short break!
December 27, 2012 by Leave a Comment
I am taking a couple days off to recoup, review and relax! I will be back to help you with your mortgage needs for homes located any where in Washington state on January 3, 2013.
Mortgage Master Service Corporation will be closed on January 1, 2013 in observance of the New Year Holiday.
Thank you for your continued support and for making 2012 a wonderful year.
I wish you and yours a very happy, healthy and prosperous 2013.
In Honor of our Veterans
November 12, 2012 by Leave a Comment
Mortgage Master Service Corporation is closed today in observance of Veterans Day. We will resume business as usual on Tuesday, November 13, 2012.
A heartfelt thank you to all who serve and have served our country to protect our freedoms, including my father in law, Bob Porter.
Answering a question regarding HARP 2.0 and PMI
August 28, 2012 by Leave a Comment
Dear Rhonda:
I currently pay PMI on my mortgage, if I refinance under HARP 2.0, after refinance, will the PMI still exists? Would the PMI premium be lower since the amount refinanced is lesser than the previous mortgage?
Dear Reader:
Yes, if you currently pay PMI on your HARP 2.0 eligible mortgage, you will also have private mortgage insurance in your new mortgage payment with your new refinanced mortgage. It will be based on the same coverage (percentage) amount as your existing pmi. So if your mortgage balance is lower, the monthly pmi payment may be slightly lower as well.
I recommend comparing your existing payment (PIMI) to the proposed new payment, factoring in when your existing PMI may drop off. If you’re within months from your existing pmi dropping off, it could be worth delaying refinancing, however, if t’s after December 2013 (when HARP 2.0 is currently scheduled to terminate) it’s probably in your favor to refinance now.
If your home is in Washington state, where I am licensed to originate, I’m happy to help you.
The Mortgage Rates You’ve Been Waiting For: Conforming-Jumbo under 6!
May 9, 2008 by Leave a Comment
EDITORS NOTE: THIS POST IS FROM 2008 – THE MORTGAGE RATES QUOTED ARE NO LONGER VALID. For a current rate quote on your home located in Washington state, click here.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000. This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below.
30 Year Fixed: 5.625% (APR 5.776%)
30 Year Fixed with 10 Year Interest Only: 6.000% (APR 6.140%)
15 Year Fixed: 5.250% (APR 5.500%)
Conforming-Jumbo Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 – $567,500 for properties in King, Snohomish or Pierce Counties. (For other conforming-jumbo loan limits in Washington state, click here); specifically priced for a sales price of $650,000 and a $520,000 loan amount.
30 Year Fixed: 5.750% (APR 5.898%)
30 Year Fixed with 10 Year Interest Only: 6.250% (APR 6.386%)
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down). The specific scenario used to price the rates below is a sales price of $850,000 with a loan amount of $680,000.
30 Year Fixed: 7.500% (APR 7.758%)
FHA. Pricing based on credit score of 620 or better and loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed: 5.750% (APR 6.527%).
FHA-Jumbo. Pricing based on loan amounts from $362,791 – $567,500 for King, Snohomish and Pierce Counties. For other loan limits in Washington State, click here.
30 Year Fixed: 5.875% (APR 6.649%)
VA. Pricing based on credit scores of 620 or better based on loan amounts up to $417,000.
30 Year Fixed: 5.875% (APR 6.188%)
Prime Rate (what HELOCs are based on): 5.000%
This is just a small sample available of rates and products. Rates are as of Friday, May 9, 2008 at 8:00 a.m. and may change at any time. Follow me on Twitter to see rates I’m quoting. Available programs may change at anytime as well. This is not a guarantee nor is it a commitment of interest rate.
For your personal rate quote for your Washington State property, please contact me.
Mortgage Interest Rates including Conforming-Jumbo and FHA-Jumbo
April 25, 2008 by 1 Comment
EDITORS NOTE: This post is from 2008! Mortgage rates quoted are no longer valid. If I can provide you with a current rate quote for your Washington state home, please click here.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000. This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below.
30 Year Fixed: 5.875% (APR 6.023%)
30 Year Fixed with 10 Year Interest Only: 6.250% (APR 6.388%)
15 Year Fixed: 5.500% (APR 5.743%)
Conforming-Jumbo Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 – $567,500 for properties in King, Snohomish or Pierce Counties. (For other conforming-jumbo loan limits in Washington state, click here); specifically priced for a sales price of $650,000 and a $520,000 loan amount.
30 Year Fixed: 6.375% (APR 6.524%)
30 Year Fixed with 10 Year Interest Only: 6.875% (APR 7.018%)
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down). The specific scenario used to price the rates below is a sales price of $850,000 with a loan amount of $680,000.
30 Year Fixed priced with 1.5% points: 7.625% (APR 7.841%)
30 Year Fixed priced with 1 point: 8.000% (APR 8.169%)
FHA. Pricing based on credit score of 620 or better and loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed: 6.125% (APR 6.910%).
FHA-Jumbo. Pricing based on loan amounts from $362,791 – $567,500 for King, Snohomish and Pierce Counties. For other loan limits in Washington State, click here.
30 Year Fixed: 6.375% (APR 7.158%)
VA. Pricing based on credit scores of 620 or better based on loan amounts up to $417,000.
30 Year Fixed: 6.25% (APR 6.572%)
Prime Rate (what HELOCs are based on): 5.250%
Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR. These programs all have the same closing costs so you can see APR is not a valuable tool.
This is just a small sample available of rates and products. Rates are as of Friday, April 25, 2008 at 9:00 a.m. and may change at any time. Available programs may change at anytime as well. This is not a guarantee nor is it a commitment of interest rate. For your personal rate quote for your Washington State property, please contact me.
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