Compare lenders to find the strongest mortgages in the Evergreen State.
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.
Mortgage lenders in Washington
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.
Veterans in Washington State are eligible for higher VA mortgage limits without a down payment — from $484,350 to up to $726,525 in select high-cost cities as of 2019.
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.
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.