Washington State Mortgages, Made Clear. Buying or Refinancing? Let's find the right loan together.
Many of my mornings have been spent watching CNBC's Mark Haines with Erin Burnett and I'm saddened to learn that Mark passed away at the young age of 65. I loved his wit, humor and ability to cut through political bolony.
Here's one of my favorite Mark Haines moments.
My heart goes out to his family and friends.
The Consumer Protection Financial Bureau would like you to vote on two different proposed mortgage disclosure forms created to replace the current Good Faith Estimate and Federal Truth in Lending documents. You have until Friday to make your selection between the Pecan Bank or the Ficus Bank examples. Both contain (and are missing) the same information.
I personally prefer Ficus Bank (the darker example) as it discloses key information at the top of the form, including the interest rate and monthly payment. The Pecan example features projected payments along the top section along funds due at closing being the very first box on the form. I've written more about the proposed disclosures at Rain City Guide. It's really a choice of style and arrangement of content.
I still believe that most consumers would rather return to a detailed Good Faith Estimate featuring all closing cost itemized instead of having certain cost lumped together where it's hard to see exactly what they're paying for. Why not have the Good Faith Estimate resemble an estimated HUD-1 Settlement Statement so that there is congruency between the beginning of the transaction and closing?
I've provided my opinions and vote to the CFPB, have you?
After you visit CFPB's site and have voiced your opinion, I'd love to know which selection you made and why.
I received a really nice thank you card from Shannon Ressler at Findwell Realty last week that I want to share with you. We recently helped Shannon’s clients buy a vintage bungalow that was a short sell in the Magnolia neighborhood of Seattle using an FHA insured mortgage. Being a short sell and an FHA insured loan, there was no shortage of paper work and the transaction was coming “down to the wire”. [Read more…]
A couple days ago, Fannie Mae addressed questions regarding the high balance loan limits that are set to expire effective with Notes dated October 1, 2011 or later. The current (technically "temporary") high balance limit in the greater Seattle – Bellevue area is $567,500, the new loan limit ("permanent") after September 30, 2011 is $506,000.
Here are some points from Fannie Mae's FAQ's:
Q2. Are the loan limits definitely expiring? What would it take to get them extended or changed from the permanent loan limits?
Congress would have to take action to extend or revise the temporary loan limits, which were originally put in place through the Economic Stimulus Act of 2008 and have been extended through a series of additional legislative actions to provide support to the mortgage market…. The February report to Congress by the Departments of Treasury and [HUD] stated "the Administration recommends that Congress allow the temporary increases in limits that were approved in 2008 to expire as scheduled on October 1, 2011 and revert to limits established under HERA [Housing Economic Recovery Act]." As such, we do not expect any further extensions.
Q3. What will happen in 2012? Could permanent loan limits go down?
…the Federal Housing Agency (FHFA) is required to evaluate loan limits annually, and then revise limits accordingly. The first set of HERA loan limits (a.k.a. "permanent" loan limits) was established for calendar year 2009 based on the median home prices….While there have been median home price declines over the past three years, FHFA followed a policy to "not permit declines relative to the prior HERA [permanent] limits."
…no changes are expected to those permanent limits between October 1, 2011, and December 31, 2011. FHFA has not indicated whether it will continue its policy of not permitting declines in HERA-based limits beyond 2011…2012 loan limits could decline from those that will apply in the fourth quarter of 2011.
Loan limits for 2012 are expected to be released by FHFA in mid-November of this year. Current counties that have temporary "high balance" loan limits in Washington State are:
Only King, Snohomish, Pierce and San Juan Counties will continue to have high balance loan limits from October 1, 2011 to December 31, 2011. The other Washington counties listed (and all counties not listed) above will be returning to a conforming loan limit of $417,000 through December 31, 2011.
We don't know what 2012 brings for loan limits. We should learn more in November.
If you would like me to provide a rate quote for your home located anywhere in Washington, click here.
Please visit complete Mortgage Guides including current loan limits for homes located in Washington state.
The Talon Group, a local escrow and title company, addresses which utilities are required to be paid at closing.
How Much Can a Seller Pay Toward a Buyer’s Closing Costs? (Updated for 2026)One of the most common questions I’m asked by homebuyers — especially first-time buyers — is:
“Can the seller help pay my closing costs?”
The short answer is yes — but how much depends on the type of loan and the terms of the purchase contract.
Let’s break this down clearly. [Read more…]
NOTE: USDA INCOME LIMITS HAVE BEEN UPDATED SINCE THIS POST WAS PUBLISHED.
USDA is 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. 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). I've written more details about USDA home loans on this earlier post.
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:
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. You're looking for the "guaranteed" results and 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.
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.
I'm pleased to offer USDA financing as an option for borrowers who meet the criteria since there is no private mortgage insurance and the program is a 30 year fixed rate. 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!
