Question 1

What credit score do I need for a conventional loan?

Accepted Answer

Most conventional loans require a minimum 620 credit score, but you'll get the best rates at 740+. If your score is between 620–740, you can still qualify — you may just pay slightly higher rates or PMI.

Question 2

How much do I need for a conventional down payment?

Accepted Answer

As little as 3% for first-time buyers or 5% for repeat buyers. Put 20% down and you avoid PMI entirely. I'll help you figure out the sweet spot for your budget.

Question 3

What is PMI and when does it go away?

Accepted Answer

Private Mortgage Insurance protects the lender if you default. On conventional loans it automatically drops off when you reach 22% equity (78% LTV) based on the original schedule, and you can request removal at 20% equity. Unlike FHA, it's not permanent.

Question 4

What's the maximum debt-to-income ratio?

Accepted Answer

Most conventional loans cap DTI at 45%, though some programs allow up to 50% with strong compensating factors like high reserves or excellent credit. I'll run your numbers before you shop.

Question 5

Can I use gift funds for the down payment?

Accepted Answer

Yes — 100% of your down payment can come from gifts on a primary residence. The donor needs to provide a gift letter stating the funds don't need to be repaid. Acceptable from family, fiancés, and domestic partners.

Question 6

Can I use a conventional loan for an investment property?

Accepted Answer

Absolutely. Conventional is the most common path for investment properties and second homes. Expect a higher down payment (15–25%) and a slightly higher rate compared to a primary residence.

Question 7

15-year vs 30-year — which should I choose?

Accepted Answer

30-year keeps your payment lower and gives flexibility. 15-year saves massive interest and builds equity faster, but the payment is roughly 40–50% higher. We'll compare both side by side.

Question 8

How long does a conventional loan take to close?

Accepted Answer

Typically 21–30 days from application to closing. With a complete file and responsive borrowers, we've closed in as little as two weeks.

Question 9

Are conventional loan limits going up in 2026?

Accepted Answer

Conforming loan limits adjust annually based on the FHFA's home price index. In most of Washington the 2024 limit is $766,550, and high-cost counties go higher. I'll confirm the current limit for your county.

Question 10

What's the minimum credit score for FHA?

Accepted Answer

580 with 3.5% down, or 500 with 10% down. FHA is specifically designed for buyers who need more flexibility on credit requirements.

Question 11

Does FHA have mortgage insurance?

Accepted Answer

Yes — FHA charges an upfront mortgage insurance premium (1.75% of the loan) plus monthly mortgage insurance. If you put less than 10% down, it stays for the life of the loan. With 10%+ down, it drops off after 11 years.

Question 12

Can I use FHA more than once?

Accepted Answer

Generally FHA is for primary residences and you can only have one FHA loan at a time. There are exceptions — job relocation, growing family, or co-signing for a relative — that can allow a second FHA loan.

Question 13

What property types qualify for FHA?

Accepted Answer

Single-family homes, FHA-approved condos, 2–4 unit properties (if you live in one), and qualifying manufactured homes on permanent foundations. The home also has to pass an FHA appraisal for safety and habitability.

Question 14

Can I refinance out of FHA later?

Accepted Answer

Yes — and many people do. Once you've built up 20% equity, refinancing into a conventional loan can eliminate the monthly mortgage insurance entirely. That single move often saves $150–$300 per month.

Question 15

What's the maximum FHA loan amount in Washington?

Accepted Answer

FHA limits vary by county. In most Washington counties, the 2024 FHA limit is around $498,257, but King, Snohomish, and Pierce counties go higher due to home prices. I'll pull the exact limit for your area.

Question 16

Can I use down payment assistance with FHA?

Accepted Answer

Yes. FHA pairs beautifully with Washington down payment assistance programs like Home Advantage and House Key. Many of my FHA buyers walk in with $0 of their own money.

Question 17

What's the FHA debt-to-income limit?

Accepted Answer

FHA allows DTI up to 56.9% with strong compensating factors — significantly more flexible than conventional. This is why FHA is great for buyers carrying student loans or other debt.

Question 18

Am I eligible for a VA loan?

Accepted Answer

If you're an active-duty service member, veteran with honorable or general discharge, National Guard/Reserve member with 6+ years, or an eligible surviving spouse — yes. I'll help you get your Certificate of Eligibility.

Question 19

Is there really no down payment or PMI?

Accepted Answer

Correct. VA loans require $0 down and never charge PMI. There's a one-time VA funding fee (1.25–3.3%) but it can be rolled into the loan, and disabled veterans are often exempt.

Question 20

How many times can I use my VA loan?

Accepted Answer

Your VA benefit is reusable. You can have multiple VA loans at the same time using bonus entitlement, and once a previous VA loan is paid off, your full entitlement is restored.

Question 21

What is the VA funding fee?

Accepted Answer

It's a one-time fee that helps fund the VA loan program. First-time use with $0 down is 2.15%, subsequent use is 3.3%. Disabled veterans with a 10%+ rating are typically exempt entirely.

Question 22

Can I use my VA loan for a multi-unit property?

Accepted Answer

Yes — up to 4 units, as long as you live in one of them. It's one of the smartest house-hacking strategies available to veterans.

Question 23

Are there VA loan limits in Washington?

Accepted Answer

With full entitlement, there's no loan limit on a VA loan. If you have partial entitlement, county limits apply. Most Washington buyers have full entitlement available.

Question 24

Can I get a VA loan with bad credit?

Accepted Answer

VA doesn't set a minimum credit score, but most lenders look for 580–620+. We work with VA-friendly investors that can go lower than the big banks.

Question 25

Does the seller pay closing costs on a VA loan?

Accepted Answer

VA loans allow sellers to contribute up to 4% of the loan amount toward closing costs and concessions — significantly more than other loan types.

Question 26

How long does a VA loan take to close?

Accepted Answer

Typically 25–35 days. The VA appraisal can add a few days vs. conventional, but with a clean file we close VA loans on time consistently.

Question 27

Do I have to buy a farm for a USDA loan?

Accepted Answer

Not at all. USDA 'rural' includes many suburban areas around Washington's cities. You'd be surprised how many neighborhoods qualify. I can check any address for eligibility.

Question 28

Are there income limits for USDA loans?

Accepted Answer

Yes — household income generally can't exceed 115% of the area median income. Limits vary by county and household size. Many middle-income families qualify.

Question 29

Is there mortgage insurance on a USDA loan?

Accepted Answer

Yes, but it's lower than FHA. There's a 1% upfront guarantee fee (rolled into the loan) and a 0.35% annual fee (paid monthly). Cheaper than FHA's monthly mortgage insurance.

Question 30

What credit score do I need for USDA?

Accepted Answer

Most USDA lenders want 640+ for streamlined processing. Below that, manual underwriting is possible but harder. We can often find a path with 600+.

Question 31

Can I use USDA for a second home or investment property?

Accepted Answer

No — USDA loans are strictly for primary residences. The home must be owner-occupied as your main home.

Question 32

How do I check if a property is USDA-eligible?

Accepted Answer

Send me the address and I'll check it instantly. The USDA has an online eligibility map, and many homes you wouldn't expect to qualify actually do.

Question 33

Do I need to be a first-time buyer for USDA?

Accepted Answer

No. USDA has no first-time buyer requirement. Anyone meeting the income and property location requirements can use the program.

Question 34

Can closing costs be financed with USDA?

Accepted Answer

Yes — if the home appraises for more than the purchase price, the difference can be used to cover closing costs. Sellers can also contribute up to 6%.

Question 35

What's the jumbo loan limit in Washington?

Accepted Answer

In most Washington counties, the conforming limit is $766,550 (2024). Anything above that is a jumbo loan. Some high-cost counties have higher limits. I'll confirm the limit for your area.

Question 36

Do jumbo loans require a bigger down payment?

Accepted Answer

Typically 10–20% down, though some programs offer as low as 5% for well-qualified borrowers. Higher credit scores (700+) unlock the best jumbo rates and terms.

Question 37

What credit score do I need for a jumbo loan?

Accepted Answer

Most jumbo programs want 700+ for the best rates, with 680 as a typical floor. Stronger scores (740+) unlock the lowest jumbo rates.

Question 38

Are jumbo loan rates higher than conventional?

Accepted Answer

Not always. In some markets jumbo rates are actually lower than conforming because lenders want jumbo borrowers, who tend to be stronger credits with higher reserves.

Question 39

How much in reserves do I need for a jumbo loan?

Accepted Answer

Typically 6–12 months of mortgage payments (PITI) in liquid reserves, depending on the program and loan size. Stronger reserves = better terms.

Question 40

Can I get a jumbo loan with less than 20% down?

Accepted Answer

Yes. Jumbo programs with 10% down are widely available, and select 5%-down jumbo programs exist for highly qualified borrowers.

Question 41

Are jumbo loans available for second homes and investment properties?

Accepted Answer

Yes — for both. Expect slightly higher rates and down payments for non-owner-occupied jumbo loans.

Question 42

What's the largest jumbo loan available?

Accepted Answer

We have programs that go up to $3M+ with strong qualification, and super-jumbo options above that. Tell me your scenario and I'll find the right investor.

Question 43

How does a renovation loan work?

Accepted Answer

You finance the purchase price plus the cost of renovations in a single loan. The lender appraises the home based on its after-renovation value. One closing, one payment.

Question 44

What renovations can be financed?

Accepted Answer

Almost anything — kitchen and bath remodels, new roofing, HVAC, structural repairs, additions, and even energy-efficient upgrades. Luxury items like swimming pools may have restrictions.

Question 45

What's the difference between FHA 203(k) and HomeStyle?

Accepted Answer

203(k) is FHA's renovation program with 3.5% down and more flexibility for credit. HomeStyle is the conventional version with 3–5% down, no mortgage insurance once you hit 20% equity, and works for investment properties too.

Question 46

Do I need a contractor for a renovation loan?

Accepted Answer

Yes — for most projects, you'll need a licensed contractor with a written bid. The lender approves the contractor and disburses funds in stages as work is completed.

Question 47

How long do I have to complete renovations?

Accepted Answer

Typically 6 months for a standard 203(k) and up to 12 months for larger projects. The timeline is set up front in your renovation contract.

Question 48

Can I do the work myself?

Accepted Answer

Generally no for FHA 203(k) — work must be done by licensed contractors. HomeStyle allows some DIY for highly skilled borrowers, but most lenders require professional contractors.

Question 49

How is the loan amount calculated?

Accepted Answer

Based on the lower of (purchase price + renovation costs) or the after-repair appraised value. The appraiser values the home as if renovations were already complete.

Question 50

Can I refinance into a renovation loan?

Accepted Answer

Yes — both 203(k) and HomeStyle allow refinances. Great for homeowners who want to renovate without a separate, higher-rate construction loan.

Question 51

How does a construction loan work?

Accepted Answer

We finance the land purchase and the build in one loan. Funds are disbursed in stages as construction progresses. When the home is complete, it converts to a permanent mortgage — one closing.

Question 52

Do I need to already own the land?

Accepted Answer

No. The construction loan can include the land purchase. If you already own the lot, its equity can count toward your down payment.

Question 53

How long does construction financing last?

Accepted Answer

Typically 9–12 months for the construction phase, then it converts to a 15- or 30-year permanent mortgage. Extensions are available if the build runs long.

Question 54

How are payments structured during construction?

Accepted Answer

Interest-only on the funds drawn so far. As the builder hits milestones and pulls more draws, your interest-only payment grows — but you're not making principal payments yet.

Question 55

Do I lock my rate before construction starts?

Accepted Answer

Yes — you can lock the permanent rate up front (one-time close) or float it and lock when the build is near completion (two-time close). Each has trade-offs.

Question 56

What credit score do I need for a construction loan?

Accepted Answer

Most construction programs want 680+ with 10–20% down. Stronger credit and reserves unlock better rates and easier draws.

Question 57

Can I use a VA or FHA construction loan?

Accepted Answer

Yes. VA and FHA both have one-time-close construction options. They're less common but powerful for veterans and FHA-eligible buyers building a custom home.

Question 58

Who chooses the builder?

Accepted Answer

You do — but the builder must be licensed, insured, and approved by the lender. We'll vet your builder up front so there are no surprises mid-project.

Question 59

How long is the fixed period on an ARM?

Accepted Answer

Most ARMs have a fixed period of 5, 7, or 10 years. After that, the rate adjusts annually based on a market index. A 7/1 ARM means 7 years fixed, then adjusts once per year.

Question 60

Is an ARM risky?

Accepted Answer

It depends on your plans. If you expect to sell or refinance within the fixed period, an ARM can save you significant money vs. a fixed rate. ARMs also have rate caps that limit how much the rate can increase.

Question 61

What does '5/1' or '7/6' ARM mean?

Accepted Answer

The first number is how many years the rate stays fixed. The second is how often it adjusts after that. A 7/6 ARM is fixed 7 years, then adjusts every 6 months.

Question 62

How much can my ARM rate increase?

Accepted Answer

All ARMs have caps: an initial cap on the first adjustment, a periodic cap on each subsequent adjustment, and a lifetime cap. Common caps are 2/2/5 or 5/2/5.

Question 63

What index does an ARM use?

Accepted Answer

Most modern ARMs use SOFR (Secured Overnight Financing Rate) plus a margin — typically 2.75%. LIBOR-based ARMs are being phased out.

Question 64

Can I refinance out of an ARM later?

Accepted Answer

Yes — and many borrowers do, before the fixed period ends. If rates have dropped or you're staying longer than expected, refinancing into a fixed rate is straightforward.

Home Purchase Loans

Conventional

FHA

VA

USDA

Jumbo

Renovation

Construction

ARM (Adjustable-Rate)

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