FHA Jumbo

FHA mortgage loans in King County, Snohomish County, Pierce County that exceed $424,100 will be considered an FHA Jumbo or “high balance” mortgage.

In King County, you can finance a home up $592,250 (as of Nov 2016) with FHA financing. It’s important to note as we begin, as with all other high-balance or JUMBO loans, other restrictions (overlays) may apply, and you may be subject to a higher interest rate with a JUMBO loan versus a conforming loan (under $424,100).

SEATTLE FHA JUMBO LOAN REQUIREMENTS

    • A 3.5% down payment is required
    • The Washington FHA Loan Limit of $592,250 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 6% of your closing and settlement costs
  • The minimum credit 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
  • Flexible guidelines related to buying after a foreclosure, bk, or short sale (see Dan)

EX: CONTRAST BETWEEN FHA AND FANNIE MAE

FHA
Loan Amount: $500,000
Down Payment: $17,500 (allows for lower down pmnt)
Min. Credit Score: 620 (allows for lower credit score)
Credit Score Used For Example: 700
Interest Rate: 4.00% (lower interest rate)
Monthly PMI: $362 (lower monthly PMI)*
Total Mortgage Payment: $2,665
* PMI required for life of loan (downside of FHA)

FANNIE MAE – Conventional
Loan Amount: $500,000
Down Payment: $50,000
Min. Credit Score: 680
Credit Score Used For Example: 700
Interest Rate: 4.625%
Monthly PMI: $431
Total Mortgage Payment: $2,873

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 scheduling a Mortgage Planning meeting with me to compare all of the options available to your specific credit application and goals.

HOW TO GET APPROVED FOR A HOME LOAN WITH DAN KELLER

We make it easy. I encourage you to reach out to me through email or phone to have a mortgage planning discussion surrounding your mortgage goals and budget. There are so many additional factors that go into qualifying for a Home Loan today, it’s important that you are working with a professional that understands the ins and outs of the process and current market trends.

To apply for a Home Loan, visit my Mortgage Concierge Page and follow steps one and two.

I WANT TO BE YOUR MORTGAGE ADVISOR!

I LOVE connecting with my social media followers and readers! You are the reason I produce this content and share it weekly on Seattle Real Estate Radio 1300am. I can always be reached directly at 425-350-7136 or via email at dkeller@guildmortgage.net

If you found this information valuable, please share it! If you are a real estate broker and would like more information like this to be shared at your next office meeting, please contact my office to scheduled me!

More Info On Our Next Home Buyer Class – Home Buying 101 Mixer
Get Pre-Approved With Dan – Apply Now
Monthly Budget With Dan Class – www.BudgetWithDan.com
Download My Mortgage Planning Guide – Dan Keller’s Mortgage Planning Guide

Buying a home is the largest financial decision is the largest financial decision you'll make in your life.

Who you have managing that process is more important than you know.