FHA Loans Washington State – 3.5% Down, Flexible Credit
FHA loans have helped first-time buyers since 1934. Today: 3.5% down, low closing costs, easy credit qualifying. FHA (part of HUD) insures the loan, so lenders offer better terms. Perfect when conventional turns you down or you need flexible funds to close.
Some Benefits of FHA Loans
3.5% of purchase price. Most closing costs can be gift or seller paid.
Seller can contribute up to 6% toward costs. Lender credits available.
No specific FHA minimum, but 580+ gets best terms. Explain past issues, not auto-denied.
What Does FHA Have For You?
Buying Your First Home?
Down as low as 3.5%, most closing costs can be included. Available on 1-4 unit properties – live in one, rent the others.
Want a Fixer-Upper? FHA 203(k)
Buy + rehab in one loan. Or refinance + add repair costs. We offer Standard and Limited 203(k).
Financial Help for Seniors
62+? FHA Reverse Mortgage (HECM) – convert equity to cash, no monthly payment. Own outright or low balance.
Energy Efficient?
FHA Energy-Efficient Mortgage – include cost of energy improvements in loan.
Manufactured / Mobile Homes?
Yes – FHA finances factory-built housing: one product for land + home, another for homes in parks. Must meet HUD standards.
How FHA Credit & Funds to Close Work (2026)
Credit: FHA has no hard cutoff, but most lenders need 580+ for 3.5% down (500-579 = 10% down). Underwriter reviews last 12-24 months payment history. Old delinquencies, lack of credit, or incorrect report info? You can explain – FHA allows story vs just score. Many with past credit issues choose FHA even with large down payment vs higher-rate conventional.
Funds to Close: You need at least 3.5% in. Total to close is typically 6-8% with escrows, taxes, insurance, prepaid interest. FHA allows funds from: personal savings, gifts from family, grants, retirement loans, seller contributions up to 6%. Interest rate choice affects points – lower rate = may pay points, higher rate = lender may cover costs.