Washington mortgage lenders

Programs backed by the state or federal government may provide the strongest rates and terms in Washington State, if you qualify. But strong, flexible mortgages are also available through your bank or credit union. Rates, fees and terms depend on your property, budget and qualifications.

What’s best for you depends on personal circumstances that include whether you’re a first-time homeowner, have the savings to support a large down payment or can qualify for government-backed loans through the Federal Housing Administration or the USDA.

The Washington State Housing Finance Commission, a state housing agency, encourages eligible homebuyers with down payments and other assistance through an extensive home loan program.

Mortgage lenders for veterans in Washington

The US Department of Veteran Affairs (VA) guarantees home loans for veterans, active members, reservists and eligible spouses. Qualifying borrowers are extended more relaxed requirements, lower down payments, stronger rates and other benefits you might not qualify for through a traditional mortgage.

How to find the lenders and rates in Washington

Don’t focus only on the interest rate. Compare that rate to potential fees, terms and the type of loan you’re interested in to find the best mortgage for your needs:

• Interest rates. The smallest difference in rates can add up to big savings over the long term. Compare the lowest rate you’re eligible for against other perks of the loan.
• Fees. Look at fees related to applying, ongoing maintenance, appraisals, insurance and prepayments.
• Terms. A 15-year mortgage may cost more in the short term, but a 30-year offers stable, low monthly payments.
• Type. Adjustable rates tend to start out lower than fixed rates, but it’s harder to predict how your adjusted rate will affect your monthly payments over the long term.

Ask potential lenders about down payment options, closing costs and even customer service options so that you’re on good footing before taking on this long-term loan.

What to consider when looking for a mortgage in Washington

The Washington State Housing Finance Commission offers assistance through participating lenders in its Home Advantage program. Help is available to families that earn up to $145,000 annually, and 30-year fixed rates vary from 4% to 5%, depending on the loan. The WSHFC also offers down payment assistance that averages $10,000 for eligible homebuyers.

A local credit union is another solid option. Credit unions often extend to members stronger interest rates lower fees than a traditional bank. But many stick to 30-year mortgages, which might not help if you’re looking for a more flexible loan.

Closing cost fees in Washington

Our research indicates that you’ll pay about $2,506 in closing fees after taxes on a home price between $200,000 and $300,000. Compare that to neighboring Idaho, where closing fees on the same home sale price can reach $3,044 after taxes.

Closing costs in Washington.

Bottom line

Washington State offers a statewide program to help eligible homebuyers with low rates, long terms and even assistance with down payments. If you’re a veteran or active member of the military, you may qualify for the competitive terms, rates and flexibility that comes with federal backing. Banks, credit unions and other traditional lenders are also an option for strong rates, flexible terms and other benefits.

Weigh the options of state and nationwide mortgage lenders to find the best fit for your financial needs in the Evergreen State.

Frequently asked questions

• How many loan programs does the WSHFC offer?

  The Washington State Housing Finance Commission offers four loan programs:

  • Home Advantage. Qualify for low fixed rates on 30-year terms.
  • House Key Opportunity. Offers special rates for those who qualify for down-payment help.
  • Energy SPARK. Get extra perks when purchasing an energy-efficient home.
  • Home Advantage Downpayment Assistance. Qualify for an average $10,000 if you meet household income requirements.

• I'm a first-time homebuyer. Can I qualify for an FHA loan in Washington State?
  

  Yes, if you meet eligibility requirements that include:

  • Good credit
  • A low debt-to-income ratio
  • The ability to put down at least 3.5% of the home’s purchase cost

  Learn more about loans backed by the Federal Housing Administration.

• What's the average home cost in Washington State?

  The median sale price of homes in the Evergreen State is $369,000, according to Zillow at the time of writing.