Conventional Home Loan

Conventional loans follow the guidelines of Fannie Mae (FNMA) and Freddie Mac (FHLMC). They are the most common type of mortgage and are ideal for borrowers with established credit and steady income. Loan terms of 10, 15, 20, and 30 years are typically available.

Conventional financing is often chosen for its flexibility and competitive terms. With down payments starting as low as 3%, it’s accessible to many buyers, though putting 20% down helps avoid PMI and secure the strongest terms.

Agency Jumbo Home Loan

Agency jumbo loans provide conventional financing for amounts above standard conforming limits, up to the “high balance” thresholds that vary by county. These loans bridge the gap between conforming and full jumbo financing.

Rates may be slightly higher than conforming conventional loans, reflecting the larger loan size and higher risk to the lender. Borrowers should expect stricter guidelines while still enjoying many of the benefits of conventional financing.

Jumbo Home Loan

Jumbo loans finance properties above county-specific high balance limits—often starting in the $700,000+ range in Washington. They’re commonly used for luxury homes, waterfront properties, and high-value real estate markets like King County and Seattle.

Because of the larger loan amounts, lenders typically require down payments of 20%–40%, strong credit, and significant reserves. These loans allow buyers to access premier properties beyond conforming loan caps.

FHA Home Loan

FHA loans are insured by the Federal Housing Administration and have helped homebuyers since 1934. They are especially appealing for those with limited savings or less-than-perfect credit. FHA loans allow low down payments and flexible credit qualifications.

Contrary to popular belief, FHA loans are not just for first-time buyers. Many Washington homeowners use FHA financing for its accessibility and forgiving guidelines around past financial hardships such as bankruptcy.

VA Home Loan

VA loans, created in 1944, provide eligible veterans, active-duty service members, and some surviving spouses with a powerful benefit: a federally guaranteed mortgage with no required down payment. They are especially important in Washington, home to Joint Base Lewis-McChord and several naval installations.

VA loans remove many barriers to homeownership, offering competitive rates and no monthly PMI. Loan amounts may extend beyond county limits when combined with a down payment, making them flexible for many buyers.

Interest-Only Home Loan

With an interest-only mortgage, borrowers pay only the interest for a set introductory period. This results in lower initial payments and can provide flexibility for those with fluctuating income or short-term ownership plans.

However, because the principal balance doesn’t decrease during this period, equity does not build unless you make extra principal payments. When the interest-only term ends, payments rise to include both principal and interest.