Question 1

How do I know if I'm ready to buy a home?

Accepted Answer

Readiness usually comes down to four things: steady income (most lenders want to see at least two years of consistent earnings, but there are exceptions), a debt-to-income ratio under about 45%, a credit score in the low-600s or higher, and enough cash on hand to cover a down payment plus a small cushion for closing costs and moving. You don't need perfection in every category — strength in one area can offset weakness in another. The honest answer is most people are closer than they think and most people wait longer than they need to. The best way to find out is to spend 15 minutes on the phone with me, run your real numbers, and get a written pre-approval (or a clear, no-pressure plan to get there in 3-6 months). It's free, there's no credit hit if we keep it to a soft pull, and you walk away knowing exactly where you stand instead of guessing.

Question 2

What's the first step in buying a home?

Accepted Answer

Get pre-approved before you start touring houses. Pre-approval is when a lender pulls your credit, verifies your income and assets, and issues a letter saying exactly how much you qualify for and at what rate. It does three big things: it tells you a real, accurate budget (Zillow's affordability calculator is a guess — pre-approval is the truth), it shows sellers and listing agents that you're a serious buyer, and it locks in your rate options so you can move fast when you find the right home. In a competitive market a pre-approval letter is the difference between your offer being taken seriously and being thrown out. The full process usually takes 24-72 hours once you send me your documents, and the initial conversation takes about 15 minutes.

Question 3

How much do I need for a down payment?

Accepted Answer

Less than you've been told. The 20% down myth scares a lot of buyers out of the market — the truth is most first-time buyers in Washington put down 3-7%. Conventional loans go as low as 3% down, FHA loans as low as 3.5%, and VA and USDA loans require zero down if you qualify. On a $500,000 home that's $15,000-$17,500 instead of $100,000. The trade-off for less than 20% down is private mortgage insurance (PMI on conventional, MIP on FHA), which adds roughly $100-$300 a month depending on the loan size and credit score — but PMI on conventional drops off automatically once you hit 20% equity. Washington also has down payment assistance programs (Home Advantage, House Key Opportunity, and several city/county programs) that can cover most or all of your down payment as a second loan or grant. We'll figure out which combination saves you the most money over the life of the loan.

Question 4

What credit score do I need?

Accepted Answer

It depends on the loan type, but here are the real floors: conventional loans typically need 620+, FHA goes down to 580 with 3.5% down (or 500 with 10% down), VA loans have no official minimum but most lenders want 580-620+, and USDA usually wants 640+. That said, your score affects your rate, not just your eligibility. The difference between a 680 and a 760 score on a $400,000 loan can be roughly $150-$250 a month for the life of the loan — so if you're close to a credit cutoff, it's often worth spending 60-90 days improving your score before locking. I'll review your credit report with you, point out the specific items that are dragging your score down, and tell you exactly which moves will give you the biggest jump (paying a card down to under 10% utilization, removing an old collection, disputing an error, etc.). If your score isn't there yet, we'll build a real timeline to get you there.

Question 5

How long does the mortgage process take?

Accepted Answer

From accepted offer to keys in your hand, most purchase loans close in 30-45 days. Refinances are usually 30-45 days too. VA and USDA loans sometimes run a few days longer because of the additional government review, and renovation loans (FHA 203k, conventional HomeStyle) can take 45-60 days. The typical timeline looks like this: contract signed and earnest money deposited (day 1-3), inspection and appraisal ordered (day 3-10), underwriting review and conditions cleared (day 10-25), final approval and closing disclosure issued (day 25-30), and signing at the title company (day 30-45). My job is to keep things moving — I push for fast appraisals, jump on underwriter conditions the same day they come in, and tell you immediately if anything is at risk of slipping. You shouldn't have to chase me for updates; I should be calling you first.

Question 6

What's the difference between pre-qualification and pre-approval?

Accepted Answer

Pre-qualification is a quick estimate based on numbers you tell the lender — no credit pull, no income verification, no real underwriting. It's basically a guess and it carries almost no weight with sellers. Pre-approval is the real thing: the lender pulls your credit, verifies your income with pay stubs, W-2s, and tax returns, confirms your assets with bank statements, and runs your file through automated underwriting. You walk away with a written letter that says exactly how much you can borrow and at what rate. In a competitive market, listing agents will often refuse to even present an offer that's only pre-qualified — they want to see a real pre-approval from a real lender. I do full pre-approvals, not pre-qualifications, because the last thing I want is for you to fall in love with a house and then find out you don't actually qualify.

Question 7

What documents do I need?

Accepted Answer

For most W-2 borrowers: the last 30 days of pay stubs, the last two years of W-2s, the last two years of tax returns (federal, all schedules), the last two months of bank and asset statements (all pages, even the blank ones), and a copy of your driver's license. If you're self-employed, add two years of business tax returns, a year-to-date profit and loss statement, and any 1099s. If you receive Social Security, pension, child support, or alimony income that you want counted, bring the award letters and proof of receipt. If any large deposits show up in your bank statements (anything over about half your monthly income), we'll need a paper trail showing where the money came from. I'll send you a clean checklist tailored to your specific situation so you're not gathering documents we don't actually need — and so we don't get hit with surprise underwriter requests at the last minute.

Question 8

What are closing costs?

Accepted Answer

Closing costs are all the one-time fees due at signing — typically 2-5% of the purchase price in Washington. They break into three buckets. Lender fees: origination, underwriting, processing, credit report, appraisal (about $700-$900). Third-party fees: title insurance (lender's policy is required, owner's policy is optional but I always recommend it), escrow/closing fees, recording fees, and any state/county transfer taxes (Washington uses REET — real estate excise tax — typically paid by the seller, not the buyer). Prepaids: property taxes and homeowners insurance held in your escrow account, plus prepaid interest from closing day to month-end. On a $500,000 home you're typically looking at $10,000-$18,000 total. The good news: closing costs are negotiable. We can ask the seller to credit you 2-3% (very common in slower markets), use lender credits to offset costs in exchange for a slightly higher rate, or roll some costs into the loan on a refinance. I'll give you a written estimate within 24 hours of starting your file so there are no surprises.

Question 9

What's the difference between fixed-rate and adjustable-rate?

Accepted Answer

A fixed-rate mortgage locks in your interest rate for the entire life of the loan — 15, 20, or 30 years. Your principal and interest payment never changes, no matter what happens to rates in the broader economy. It's the simplest, safest, most predictable option, and it's what about 90% of my clients choose. An adjustable-rate mortgage (ARM) starts with a fixed period — usually 5, 7, or 10 years — at a rate that's typically 0.5-1% lower than the comparable fixed rate. After that initial period, the rate adjusts every 6-12 months based on a benchmark index plus a margin, with caps on how much it can move. ARMs make sense in two situations: you know you'll sell or refinance within the fixed period (military relocation, planned upgrade in 5-7 years), or rates are unusually high and you expect them to come down. For most buyers planning to stay long-term, the certainty of a fixed rate is worth the slightly higher starting payment.

Question 10

What's an FHA loan?

Accepted Answer

FHA loans are mortgages insured by the Federal Housing Administration, designed to make homeownership accessible to buyers with lower credit scores or smaller down payments. The headline numbers: 3.5% down with a credit score of 580 or higher (or 10% down with 500-579), more flexible debt-to-income limits than conventional (often up to 50%), and easier approval if you've had past credit issues. The trade-off is mortgage insurance: FHA charges an upfront MIP of 1.75% (rolled into the loan) plus an annual MIP of 0.55% spread across your monthly payments, and on most FHA loans that monthly MIP stays for the life of the loan unless you refinance into a conventional. So FHA is often the right call to get into the home, with a plan to refinance into a conventional once you have 20% equity and a stronger score. Loan limits in most Washington counties are around $524,225 for a single-family home, and higher in King, Pierce, and Snohomish counties.

Question 11

Who qualifies for a VA loan?

Accepted Answer

VA loans are available to active-duty military, veterans with qualifying service, members of the National Guard and Reserves who meet service requirements, and eligible surviving spouses of service members. The benefits are genuinely the best in the mortgage world: zero down payment on most loans, no monthly PMI ever (you do pay a one-time VA funding fee, which can be rolled into the loan and is waived entirely if you have a service-connected disability rating), competitive interest rates, and easier qualification standards than conventional. There's no loan limit if you have full entitlement — you can borrow what you can afford to repay, even on jumbo amounts. You can use your VA benefit more than once, you can have two VA loans at the same time in certain situations (PCS moves, for example), and you can refinance into a VA IRRRL with very little paperwork. If you've served, this is almost always the loan to use. I'll pull your Certificate of Eligibility for you as part of the pre-approval.

Question 12

Can I buy a home if I'm self-employed?

Accepted Answer

Absolutely — and this is one of the areas where having a broker really matters, because not all lenders treat self-employment income the same way. The traditional path is two years of business tax returns plus a year-to-date P&L; the lender averages your net income (after deductions and write-offs) and uses that as your qualifying income. The catch is that all those legitimate deductions you take to lower your tax bill also lower your qualifying income, which can make it look like you earn less than you actually do. That's where alternative documentation programs come in: bank statement loans qualify you on 12-24 months of business deposits instead of tax returns, asset depletion loans use your liquid assets as income, P&L-only loans work off CPA-prepared statements, and DSCR loans qualify investment properties on the rental income alone. These products usually carry slightly higher rates than fully-documented conventional loans, but they make homeownership very achievable for self-employed buyers. We'll figure out which path uses your real financial picture to your advantage.

Question 13

Can I use gift money for my down payment?

Accepted Answer

Yes, and most loan programs allow it. Conventional, FHA, VA, and USDA loans all permit gift funds from a family member (parents, grandparents, siblings, spouse, fiancé, domestic partner, and on FHA also from close friends with a documented relationship). The paperwork involved is straightforward but specific: we need a signed gift letter stating the amount, the relationship, the source, and a statement that the money is a true gift with no expectation of repayment. We also need a paper trail — a copy of the donor's bank statement showing the funds left their account and your bank statement showing them arrive. On conventional loans for a primary residence, the entire down payment can come from a gift. On FHA, the entire down payment plus closing costs can be gifted. The one thing to avoid: do not deposit cash. Lenders cannot source cash, and undocumented deposits will get flagged in underwriting. Wire or write a check, and let me know in advance so we can document it cleanly the first time.

Question 14

Do I need to sell my current home before buying?

Accepted Answer

Not necessarily — you have several options depending on your equity, income, and timeline. Option 1: Buy first, sell second using your existing income to qualify for both mortgages (works if your debt-to-income ratio supports both payments). Option 2: Use a HELOC or cash-out refinance on your current home to pull equity for the down payment on the new home, then sell and pay off the HELOC. Option 3: Bridge loan — a short-term loan secured against your current home that funds the down payment on the new one, paid off when you sell (typically 6-12 month terms). Option 4: Sale-leaseback or rent-back agreement where you sell first but stay in the home for 30-60 days after closing. Option 5: Make a contingent offer (the new purchase is contingent on selling the current home) — this works in slower markets but gets rejected fast in competitive ones. The right choice depends on how much equity you have, how strong your income is, and how competitive the market is for the home you want. Let's run the numbers for your specific situation.

Question 15

How do I get the best interest rate?

Accepted Answer

Five things drive your rate: credit score, loan-to-value ratio (down payment percentage), debt-to-income ratio, loan type, and lender competition. The first three are about you — a 760+ credit score, 20%+ down payment, and DTI under 36% will get you the best pricing on conventional loans. Loan type matters because FHA and VA price differently than conventional, and 15-year fixed rates are typically 0.5-0.75% lower than 30-year. But the biggest lever — and the one most buyers don't think about — is lender competition. Banks and credit unions only sell their own product. As a broker I shop your file across 30+ wholesale lenders and pick the best price for your exact scenario; the same loan can have a 0.25-0.5% rate spread between lenders on any given day. You can also pay points (prepaid interest) to buy your rate down, lock your rate when the market dips, or use a lender credit to offset closing costs in exchange for a slightly higher rate. I'll show you the trade-offs side by side so you can pick what saves you the most money over the time you actually plan to keep the loan.

Question 16

Is there down payment assistance in Washington?

Accepted Answer

Yes — Washington has some of the better DPA programs in the country, and most buyers don't know they exist. The big ones: Washington State Housing Finance Commission's Home Advantage program offers a second mortgage of up to 5% of the loan amount for down payment and closing costs, with no payments due until you sell or refinance. House Key Opportunity is a similar program targeted at lower-income buyers with even better terms. Veterans Down Payment Assistance offers up to $10,000 for VA-eligible borrowers. There are also targeted programs for teachers, first responders, and buyers in specific cities (Seattle, Tacoma, Spokane, and several others have local programs). Most of these stack on top of conventional, FHA, or VA first mortgages. The catches to know: most require a homebuyer education class (free, online, takes about 4 hours), most have income limits that vary by county, and most require you to occupy the home as your primary residence. I'll help you figure out which programs you qualify for and run the numbers to see whether using DPA actually saves you money long-term (sometimes it does, sometimes a slightly higher rate with no DPA wins — we'll do the math).

Question 17

What is a reverse mortgage and how does it work in Washington?

Accepted Answer

A reverse mortgage is a loan for homeowners 62 and older that converts part of your home equity into cash — with no required monthly mortgage payment for as long as you live in the home as your primary residence. Instead of you paying the lender each month, the loan balance grows over time as interest accrues, and the loan is repaid in a single lump sum when you sell, permanently move out, or pass away. You stay on title, you keep your home, and any equity remaining after the loan is repaid goes to you or your heirs. Most Washington borrowers use the FHA-insured Home Equity Conversion Mortgage (HECM), which is federally regulated and capped at $1,209,750 for 2024. Higher-value Seattle, Bellevue, and Eastside homes may qualify for proprietary jumbo reverse mortgages that go well above the HECM limit. As a Washington reverse mortgage broker I shop multiple investors so you see real options instead of whatever a single national lender is pushing.

Question 18

Who qualifies for a Seattle reverse mortgage?

Accepted Answer

The basic requirements: you must be 62 or older (the youngest borrower on title, if there's more than one), you must own the home outright or have substantial equity (typically 50%+), the home must be your primary residence (where you live more than half the year), and you must complete a HUD-approved counseling session before the loan can be ordered. The home itself has to be eligible — single-family residences, FHA-approved condos, manufactured homes built after 1976 on permanent foundations, and 2-4 unit properties where you occupy one unit all qualify. You also need to demonstrate the financial capacity to keep up with property taxes, homeowners insurance, and required maintenance — there's a financial assessment but it's much lighter than a traditional mortgage. There's no minimum credit score and no minimum income requirement. Washington reverse mortgages are available statewide, from Seattle and Tacoma to Spokane, Vancouver, and the Tri-Cities.

Question 19

Should I use a reverse mortgage broker or go straight to a reverse mortgage lender?

Accepted Answer

Going to a national reverse mortgage lender — Liberty Reverse Mortgage, Finance of America, Mutual of Omaha, AAG — only gets you their product at their pricing. They have one menu and they're going to sell you off it. As a Washington reverse mortgage broker I shop your scenario across 30+ wholesale investors and pick the combination of rate, fees, and loan structure that actually fits your situation. The same borrower with the same home can see a $5,000-$15,000 difference in costs and tens of thousands of dollars in lifetime interest depending on which investor funds the loan. A broker also gives you something a national call center can't: a local advisor who understands Washington property values, knows the King and Pierce County appraisers, and is going to be reachable when you have a question two years from now. The HECM product itself is federally standardized, but the pricing absolutely is not.

Question 20

How much money can I get from a reverse mortgage in Washington?

Accepted Answer

Your principal limit (the maximum amount you can borrow) is calculated from three things: the age of the youngest borrower (older = more), the appraised value of the home (capped at the HECM lending limit of $1,209,750 for 2024), and the current expected interest rate (lower rates = more proceeds). As a rough rule of thumb, a 65-year-old can typically access 40-50% of the home value, a 75-year-old can access 50-60%, and an 85-year-old can access 60-70%. Higher-value Washington homes — particularly on the Eastside, in Mercer Island, and in Seattle's premium neighborhoods — that exceed the HECM cap may qualify for a proprietary jumbo reverse mortgage going up to $4 million in home value with no upper lending limit on proceeds. You can take the money as a lump sum, a monthly tenure payment for life, a line of credit that grows over time at the same rate as the loan, or any combination of those three. I'll run multiple scenarios so you see exactly what each option pays you over time.

Question 21

Do I still own my home with a reverse mortgage?

Accepted Answer

Yes. A reverse mortgage is a loan, not a sale. You stay on title as the legal owner, you keep all the rights of ownership, and any appreciation in the home's value belongs to you (or your heirs). The lender does not take ownership, does not take partial ownership, and cannot kick you out as long as you meet the loan terms. Your responsibilities are the same as any homeowner: pay your property taxes, keep homeowners insurance in force, pay any HOA dues, and maintain the home in reasonable condition. The reverse mortgage is simply a lien on the property — exactly like a traditional mortgage — and it gets repaid when the home is sold, refinanced, or transferred after your passing. If your heirs want to keep the home, they can pay off the reverse mortgage balance (or 95% of the appraised value, whichever is less) and the home is theirs.

Question 22

Can a reverse mortgage help with a divorce in Washington?

Accepted Answer

Yes — and for couples 62 and older it's often the smartest option on the table. The classic divorce problem: one spouse wants to keep the family home, but to do that they have to refinance to remove the other spouse from the loan and pay them their share of the equity. A traditional refinance requires the staying spouse to qualify on their income alone and adds a new monthly mortgage payment they may not be able to afford. A reverse mortgage solves both problems: it pulls enough equity to buy out the leaving spouse without requiring monthly payments going forward, and qualification is based on age and home value rather than income. As a divorce mortgage advisor in Washington I work directly with family law attorneys to structure the buyout, time it correctly with the divorce decree, and make sure the staying spouse can stay in the home long-term without payment shock. This is one of the most underused tools in Washington divorce settlements.

Question 23

Can I buy a new home in Seattle with a reverse mortgage?

Accepted Answer

Yes — through the HECM for Purchase program. Washington buyers 62 and older can use a reverse mortgage to purchase a new primary residence with no monthly mortgage payment going forward. Here's how it works: you bring a down payment (typically 45-60% of the purchase price, depending on your age and current rates), the reverse mortgage finances the balance, and you own the new home outright on title with a reverse mortgage lien. From day one you have no monthly mortgage payment. This is a powerful tool for downsizing (selling a $1.2M Seattle home, putting $500K down on a $700K Bellevue condo, and pocketing the rest), relocating closer to family or healthcare, or moving from a high-maintenance home to a single-level property without depleting your retirement savings on the new purchase. The same age, occupancy, and property requirements as a standard reverse mortgage apply.

Question 24

How is a reverse mortgage different from a HELOC?

Accepted Answer

Both let you tap home equity, but they work very differently. A HELOC requires monthly interest-only payments during the draw period and full principal-and-interest payments during the repayment period — miss one and you risk foreclosure. HELOCs require income and credit qualification (lenders pulled and froze a lot of HELOCs in 2008 and 2020), the line can be reduced or canceled by the bank at any time, and the full balance becomes due if you sell. A reverse mortgage line of credit has no required monthly payment for as long as you live in the home, qualification is much easier (no income or credit minimum, just a financial assessment), the unused portion of the line actually grows over time at the same rate as the loan (so $200K of unused credit today might be $280K in ten years), and the bank cannot freeze or cancel it. For most Washington homeowners 62 and older the reverse mortgage line of credit is the more stable, more flexible long-term tool. For homeowners under 62 or those who plan to sell within a few years, a HELOC is usually the better fit.

Question 25

Is a reverse mortgage safe?

Accepted Answer

HECM reverse mortgages are FHA-insured, federally regulated, and one of the most consumer-protected loan products in the country. The protections built in: required HUD-approved counseling before the loan can even be ordered, a financial assessment to make sure you can keep up with taxes and insurance, mandatory non-recourse status (meaning you or your heirs will never owe more than the home is worth at the time of repayment, even if the loan balance has grown beyond the home's value), and federal oversight by HUD and the CFPB. As long as you live in the home as your primary residence and stay current on property taxes, homeowners insurance, and any HOA dues, you cannot be forced out of your home. The horror stories you may have heard mostly come from older private products that no longer exist or from situations where the borrower stopped paying property taxes. The modern HECM is, by design, very hard to lose.

Question 26

What are the downsides of a reverse mortgage?

Accepted Answer

There are real trade-offs and a good broker will walk you through them honestly. First, closing costs are higher than a traditional mortgage — origination fees, FHA mortgage insurance premiums, and counseling fees typically add up to $8,000-$15,000 (most of which can be financed into the loan). Second, your equity decreases over time as interest accrues on the loan balance — this is the fundamental trade-off, and it means there will be less left for your heirs. Third, you must keep up with property taxes, homeowners insurance, HOA dues, and required maintenance — failing to do so is the only way you can lose the home. Fourth, the loan becomes due if you permanently leave the home (typically defined as 12 consecutive months out for medical reasons), so a reverse mortgage isn't ideal if you're likely to move into assisted living within a few years. A reverse mortgage isn't right for everyone — sometimes a HELOC, a traditional refinance, or just downsizing makes more sense. I'll compare all four options for your specific situation before recommending anything.

Frequently Asked Questions

Getting Started

The Process

Loan Types

Money & Payments

Reverse Mortgages

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