Mortgage options

What is an FHA loan?

An FHA loan is made by an approved lender with federal mortgage insurance. It can serve eligible borrowers with a smaller down payment, but credit, property and other requirements apply. Compare mortgage insurance and overall cost with conventional options rather than assuming FHA is always cheaper.

Further reading: HUD: FHA resources ↗

Who is eligible for a VA home loan?

Eligibility can include qualifying veterans, service members and certain surviving spouses. A Certificate of Eligibility helps establish the benefit, while a lender separately reviews credit, income and property requirements. Ask about funding fees, exemptions and total costs for your situation.

Further reading: VA housing assistance ↗

Can I use a USDA loan to buy in Seattle?

USDA financing requires an eligible property location as well as borrower eligibility. Do not assume a Seattle address qualifies; check the official property eligibility tool with a lender. Eligible rural-area purchases may offer no-down-payment financing, but closing costs and other requirements still matter.

Further reading: USDA guaranteed home loans ↗

Should I choose a 15-year or 30-year mortgage?

A shorter term usually pays principal faster with a higher required monthly payment; a longer term spreads payments out and may cost more interest over time. Compare actual quotes and cash reserves. Choose a payment you can sustain without assuming future refinancing.

Further reading: CFPB: mortgage basics ↗

What is an adjustable-rate mortgage?

An ARM’s rate can change under its contract after an initial period. Review the index, margin, adjustment timing and rate caps, then test higher-payment scenarios. A lower starting payment should not be the only reason to choose it.

Further reading: CFPB: adjustable-rate mortgage handbook ↗

When would I need a jumbo loan?

A jumbo loan generally exceeds the applicable conforming loan limit for its location and unit count. Limits change by year, and high-cost-area limits can differ. Check the current FHFA limit and lender options for the property instead of using one national dollar figure.

Further reading: FHFA conforming loan limits ↗

How do I lock a mortgage rate?

Ask your lender for the lock terms in writing, including rate, points, expiration and extension costs. Confirm which changes could affect the terms and what happens if closing is delayed. A quote alone is not necessarily a rate lock.

Further reading: CFPB: changes in mortgage costs ↗

What is a good loan-to-value ratio?

LTV compares the loan amount with the property value used by the lender. A lower ratio generally means more equity, but the required ratio and pricing vary by program. Compare financing cost with the cash you would retain rather than treating one ratio as universally best.

How else can I avoid or remove PMI?

Compare conventional down-payment options and any eligible alternatives using total cost. For an existing conventional loan, ask the servicer about cancellation rules and required evidence. Government-backed mortgage insurance and guarantees follow different rules; changing programs may trade PMI for other costs.

Further reading: CFPB: private mortgage insurance ↗

Should I pay discount points?

Points are an upfront cost in exchange for a rate reduction. Compare the extra cost with monthly savings over the period you reasonably expect to keep the loan. Ask for alternatives on the same day; moving or refinancing early can change the benefit.

Further reading: CFPB: discount points ↗

How does my credit score affect my mortgage rate?

Credit can affect loan eligibility and pricing, alongside down payment, property, program and market conditions. Ask a lender to explain options for your actual profile. Do not assume that reaching one score automatically produces a particular rate or approval.

Further reading: CFPB: credit and mortgages ↗

What closing costs does a cash buyer pay?

Cash avoids mortgage origination costs but not all transaction expenses. Budget for settlement and recording charges, title-related costs as agreed, inspections, insurance and applicable prorations or association fees. Request an itemized estimate for the actual property before transferring funds.

Can I buy with little or no down payment?

Some eligible buyers can use low-down-payment conventional or FHA options, VA benefits, qualifying USDA financing or assistance programs. Each has separate rules and costs. No down payment does not mean no cash needed; ask about closing costs, reserves and repayment terms.

Further reading: WSHFC homebuyer education ↗