FHA Loan Limits for homes located in Washington State for November 18, 2011 and 2012

December 5, 2011 by Leave a Comment

A few days ago, HUD confirmed the 2012 FHA Mortgage limits which have been restored to the higher “temporary” higher loan limits effective November 18, 2011. This morning, HUD’s site is reflecting the revised loan amounts.   

Here are the 2012 FHA loan limits which are retroactive for case numbers obtained November 18, 2011 or later for homes located in Washington:

King County, Snohomish County and Pierce County

  • 1 Unit: $567,500
  • 2 Unit: $726,500
  • 3 Unit: $878,150
  • 4 Unit: $1,091,351

Benton and Franklin Counties:

  • 1 Unit: $275,000
  • 2 Unit: $352,050
  • 3 Unit: $525,550
  • 4 Unit: $528,850

Chelan and Douglas Counties:

  • 1 Unit: $342,700
  • 2 Unit: $438,700
  • 3 Unit: $530,300
  • 4 Unit: $659,050

Clallam County:

  • 1 Unit: $384,100
  • 2 Unit: $491,700
  • 3 Unit: $594,350
  • 4 Unit: $738,650

Clark and Skamania Counties:

  • 1 Unit: $418,750
  • 2 Unit: $536,050
  • 3 Unit: $648,000
  • 4 Unit: $805,300

Island County:

  • 1 Unit: $381,250
  • 2 Unit: $488,050
  • 3 Unit: $589,950
  • 4 Unit: $733,150

Jefferson County:

  • 1 Unit: $437,500
  • 2 Unit: $560,050
  • 3 Unit: $677,000
  • 4 Unit: $841,350

Kitsap County:

  • 1 Unit: $475,000
  • 2 Unit: $608,100
  • 3 Unit: $735,050
  • 4 Unit: $913,450

Kittitas County:

  • 1 Unit: $328,750
  • 2 Unit: $420,850
  • 3 Unit: $508,700
  • 4 Unit: $632,200

Mason County:

  • 1 Unit: $310,000
  • 2 Unit: $396,850
  • 3 Unit: $497,700
  • 4 Unit: $596,150

San Juan County:

  • 1 Unit: $593,750
  • 2 Unit: $760,100
  • 3 Unit: $918,800
  • 4 Unit: $1,141,850

Skagit County:

  • 1 Unit: $373,750
  • 2 Unit: $478,450
  • 3 Unit: $578,350
  • 4 Unit: $718,750

Thurston County:

  • 1 Unit: $361,250
  • 2 Unit: $462,450
  • 3 Unit: $559,000
  • 4 Unit: $694,700

Whatcom County:

  • 1 Unit: $375,000
  • 2 Unit: $480,050
  • 3 Unit: $580,300
  • 4 Unit: $721,150

Adams, Asotin, Cowlitz, Ferry, Garfield, Grant, Grays Harbor, Lewis, Lincoln, Okanogan, Pacific, Pend Oreille, Spokane, Stevens, Whakiakum, Walla Walla, Whitman and Yakima Counties:

  • 1 Unit: $271,051
  • 2 Unit: $347,009
  • 3 Unit: $419,425
  • 4 Unit: $521,250

Related post:

2012 Conforming Loan Limits

Filed Under: FHA, First Time Home Buyer Tagged With: ,

The Low Down: Comparing FHA to Fannie Mae Homepath Mortgages

September 13, 2011 by Leave a Comment


EDITORS NOTE: Fannie Mae is no longer offering the FannieMae HomePath mortgage program. If you are considering buying a Fannie Mae HomePath property (foreclosure that is owned by Fannie Mae) in Washington state, I’m happy to help you. 

If you’re thinking about buying a home with minimum down payment requirements in the greater Seattle area, you may be considering a property that is owned by Fannie Mae and eligible for the Fannie Mae Homepath Mortgage or using an FHA insured loan which most properties qualify for.  When home buyers contact me about a Fannie Mae Homepath mortgage, they often ask how it compares to an FHA insured loan. Both are great programs and the benefits may vary depending on credit score, down payment and the type of property.

[Read more…]

Filed Under: Fannie, Freddie and FHFA, FHA, First Time Home Buyer, Homepath, Residential Purchase Tagged With: , , ,

Having a Hard Time Finding the “Perfect” Home in Seattle? Consider an FHA 203k Rehab Loan!

June 28, 2011 by 2 Comments

Some of my Seattle area clients have been searching for the “just right” home for months.  With a good portion of the available inventory being bank owned, many of the homes have been left in less than desirable condition or perhaps are overdue for a little TLC. If you’ve found a home that needs some work that’s located in a neighborhood you’d like to call home, an FHA 203k rehab loan may be worth your consideration.

FHA 203k loans allow a borrower to finance almost anything to improve the home (exceptions are luxury items, such as swimming pools, hot tubs, fire pits, etc.). Improvements that are allowed are:

  • structural alterations and reconstruction
  • modernization and improvement to the home’s function
  • elimination of health or safety hazards
  • changes that improve appearance and eliminate obsolescence
  • reconditioning or replacing plumbing; repairing or installing a well and/or septic; repairing/replacing electrical issues
  • adding, repairing or replacing roofing, gutters and downspouts
  • adding or replacing floors and/or floor treatments
  • major landscape works and site improvements
  • enhancing accessibility for a disabled person
  • making energy conservation improvements
  • room additions

The cost of the improvements are added to the sales price of the home.  For example, if you find a fixer with a sales price of $250,000 and it needs $40,000 in repairs or improvements, you can finance up to 96.5% of $290,000 (FHA loans currently have a minimum down payment of 3.5%).  

Many home buyers might buy a “fixer” knowing they can do a lot of the work “down the road” or as they can afford it.  With an FHA 203k rehab loan, the work is done after closing and financed with the “purchase money” first mortgage.  This means you’ll have the benefit of current low FHA rates instead of financing improvements with a Home Depot or Lowes credit card, not to mention the income tax benefits.

I recommend starting with a prequalification to see how much mortgage payment you are comfortable with and that you qualify for.  If you’re buying a home anywhere in Washington, I can help you.  Once you know what you qualify for, you can start shopping for homes that you’d like to improve (it doesn’t need to be a foreclosure or a total fixer). By the way, if you need a recommendation to a real estate agent, please let me know.

Once you’ve found a home that you’re interested in, it’s not too early to meet with a HUD approved consultant for a feasibility study. In fact, you can do this before you’re in contract.  This step is very important.  The consultant will help you identify what items HUD will require to be repaired to meet lending standards and make recommendations for improvements and consider your “wish list” for items to be done to the home.  You also want to make sure not to “over improve” your home for the area as the finished product will need to appraise for the adjusted sales price (sales price plus improvements and cost of the 203k loan).  A qualified consultant can help guide you through this part of the process and I’m happy to recommend someone if you’re buying a home anywhere in Washington.

FHA 203k loans tend to take a little longer to process and close than a standard FHA transaction. The total loan amount (sales price plus improvements) is limited to FHA loan loans which is currently $567,500 (until October 1, 2011) in King, Pierce and Snohomish Counties. 

Questions? Please contact me – your next home with your new kitchen is waiting for you. Mortgage Master Service Corporation is a Direct Endorsed HUD approved lender.

Click here for your personal mortgage rate quote for homes located in Washington.

Filed Under: FHA, Real Estate Agents Tagged With: , ,

How much can Sellers contribute towards Closing Cost?

May 12, 2011 by 10 Comments

If negotiated in your purchase and sales agreement, a Seller may agree to chip in towards some or all of your bona fide closing costs, prepaids and reserves.  They cannot contribute towards your down payment.  The amount the seller can contribute varies depending on the program type and the amount of home buyer’s down payment. The percentage is based on the sales price and if the credit exceeds the closing cost, the mortgage originator can often use it towards discount points to buy down the interest rate.

[Read more…]

Filed Under: Fannie, Freddie and FHFA, FHA, First Time Home Buyer, Underwriting and Qualifying, USDA, VA Mortgage Loans Tagged With: , , , , , , ,

FHA 203(k) Rehab Loans

February 4, 2011 by 4 Comments

mortgageporterhouseEDITORS NOTE: We currently do FULL FHA 203k Rehab loans instead of streamline and loan limits have changed since this post was written in 2011.

HUD’s FHA 203(k) loans are very popular right now considering the many homes that may have been abandoned or neglected and need some TLC.  FHA 203(k) loans allows the cost of certain repairs and improvements to be added to the sales price which essentially provides borrowers an “all in one” home repair loan for permanent financing.  The down payment is basically based off of the sales price plus the costs associated with the improvements using FHA’s minimum allowed down payment. FHA 203k loans are  a great choice for fixer-uppers or homes that need some modernization.

The maximum loan amount for a purchase using 203k financing is the lesser of the “as-is” value of the property (based on the appraisal) plus the rehab cost or 110% of the expected “after value” with the rehab.  The maximum loan amount is limited FHA’s loan limits.  See below for current FHA loan limits in Washington state.

This program is one-to-four unit dwellings and FHA approved condos as long as the homes are owner occupied.  This program does not allow investors.  Most improvements are eligible as long as they add value and are permanently affixed to the foundation. Just a few examples of improvements include painting, room additions, kitchen remodeling, roofing and decks.  Luxury items (such as swimming pools) and improvements to detached structures are not permitted.

Certain expenses are eligible to be included in the 203k loan, such as:

  • the cost of the materials used in the rehab
  • labor
  • permits, fees, inspections by qualified home inspector
  • up to six months of mortgage payments (while your home is being renovated, you will be making the mortgage payments)
  • a contingency reserve (around 15% depending on the project)

A HUD approved consultant works with the borrower to help determine what improvements FHA will require (such as energy conservation, local codes, safety, etc.) as well as the improvements the buyer would like to have done.   The consultant will develop a list of proposed improvements that will be submitted to the lender for review.

Rehabilitation construction must start within 30 days of closing with all work completed within six months of closing.

PS: FHA 203k rehab loans are not just for home buyers, they can be used to refinance an existing mortgage and pay for improving a home too!

If you would like more information about FHA’s 203k Rehab loan for home located in Washington state, please contact me.  I have been originating FHA loans at Mortgage Master Service Company since April 2000.

Filed Under: FHA Tagged With: , ,

FHA Financing Not Available on a Listing? BIG MISTAKE

April 25, 2010 by 3 Comments

Someone recently landed on my blog by entering the phrase:

Why are so many homes not FHA approved?

It's an interesting question.  I'm assuming the person doing the research on the internet is a home buyer and that they're looking at a stand-free home and not a condo…pure assumption on my point.  (If it is a condo, that's another story).

I'm wondering if the person is finding that sellers are not promoting that they will accept FHA financing on their listed homes…which is a huge mistake.

FHA loan amounts in the Seattle and Bellevue area goes up to $567,500 for a single family dwelling and currently allows a down payment as low as 3.5%.   FHA is also more flexible with credit and some underwriting guidelines.

FHA loans are more popular than ever with the ever tightening guidelines and risk based pricing that conventional loans have.  Many of my FHA home buyers are putting down more than the minimum required investment of 3.5%. 

Some might be selecting FHA for their purchase because they're converting their existing home to a rental property and FHA does not have the same reserves conventional guideline requiring 6 months of mortgage payments (PITI) for EACH property owned (or buying) if the converted home has less than 30% equity (which is often the motivation for turning the home into a rental).

Some select FHA financing because they plan on selling their home in the future and are hedging that mortgage interest rates will be higher in the future.  They know that their current low rate FHA mortgage may be assumable to a future buyer in a higher rate environment.

I've had well established clients opt for an FHA mortgage because FHA treats alimony payments different than conventional financing.

FHA is not the same mortgage that it was a few years ago.  At the end of 2005, appraisals became more "common sense" allowing minor conditions to exist, focusing  more on the safety and soundness of the property.  FHA appraisals are very similar to conventional these days.

FHA transactions do not take longer to close nor are their higher closing cost for the seller than a conforming loan

My point is, there are many reasons sellers should accept FHA financing.  If a seller or real estate agent is steering away from an FHA approved buyer, they're really reducing the potential of excellent buyers for their home.

Filed Under: FHA, Real Estate Agents, Residential Purchase Tagged With: , ,

Did You Know that FHA Mortgages are Assumable?

April 14, 2010 by 2 Comments

One benefit of FHA insured mortgages is that they are assumable to qualified buyers.  This means that if you have an FHA insured mortgage at today’s low rates and you’re selling your home during a higher mortgage rate environment, being able to offer a lower rate to potential buyers could provide a distinct advantage over other competing listings. [Read more…]

Filed Under: FHA, First Time Home Buyer, Residential Purchase Tagged With: , ,

Reader Question about FHA Mortgage Insurance

August 24, 2009 by 2 Comments

I received this email this past week while I was on vacation.  Right now I am licensed for loans only in Washington State and I don’t always have enough time left in the day to answer the questions or request for advice that I receive from readers who are located outside of my current “lending boundaries”…although I do try.  Sometimes a question or email makes a good post because it may help others who read this mortgage blog. 

Hi Rhonda, I read your blog all the time and I’m in need of advice from someone who knows their stuff — unfortunately im not in WA anymore so I can’t use you and I can’t get a straight answer out of my broker.

I am going with an FHA loan but I expect to be able to pay 20% of the principal within five years. What is not clear to me is if MIP on FHA loans can be removed *without* refinancing — i.e. just based on having paid 20% of the loan amt. I read something on the FHA site that said that this can be done only if the upfront MIP is paid at closing — I am trying to figure out if that means cash as opposed to rolling it into the loan.

Every time I’ve attempted to get an answer from my brokers they keep talking about refinancing in a few years and house appreciation — I really want to know the deal in case I CAN’T refi (due to market tanking or rates climbing, for example)

Advice is very very much appreciated.

FHA insured loans have mortgage insurance regardless of down payment or equity until two qualifications are met:

From HUD’s Mortgagee Letter 00-46:

Regardless of the computed loan-to-value ratio, all but 15-year term mortgages will have annual premiums for the greater of five years or until the amortized loan-to-value reaches 78 percent; there is no annual premium on 15-year term mortgages with initial loan-to-value ratios less than 90 percent.  All other mortgages with terms greater than 15 years, regardless of the initial loan-to-value ratio will have annual premiums for the greater of five years or until the amortized loan-to-value reaches 78 percent.  If a computed loan-to-value ratio is not possible, due to missing data or previous refinancing without an appraisal, the new loan-to-value will default to 89.99 percent.

If a borrower elects to make additional payments towards principal, they may request the monthly mortgage insurance payment be removed only after 60 payments have been made with no late payments in the last 12 months.

Those loans reaching the 78 percent loan to value threshold sooner than projected (but not sooner than five years from the date of origination except for 15-year term mortgages) due to advanced payments of principal will have the annual premium collections canceled upon the servicing lender submitting supporting information to FHA following the borrower’s request provided that the borrower has not been more than 30 days delinquent on the mortgage during the previous twelve months.

Whether or not you elect to pay your upfront mortgage insurance as a closing cost (cash) or finance it, is up to you.  It will not help expedite the removal of your monthly FHA mortgage insurance.

One of the present benefits with an FHA loan is the ability to refinance without an appraisal.  If the market tanks and homes continue to depreciate, as long as you can obtain a rate with a lower rate (the refinance must make sense), you can do an FHA streamline refinance.  I say “present” because we are in a climate where guidelines are changing….even for FHA.

Thanks for your question and for reading The Mortgage Porter.

EDITORS NOTE: FHA guidelines for mortgage insurance is changing in 2013. Please check current guidelines.

Filed Under: FHA, Mortgage Insurance Tagged With: ,
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