Buying a home in the Tri-Cities, WA?
Many buyers require a loan to purchase a home. There are multiple types of loans, from land loans, to rehab, FHA, USDA, Conventional, Hard-Money loans and more.
Land-loans typically require more money down. Local credit unions, such as Gesa, can have better flexibility and programs for these. Make sure you let your lender know the purpose for buying the land, as they may have a better option (for example, a new construction loan for a custom home) available. Contact Mike Rogers at (509) 420-0330 for more information.
Rehab loans allow you to fix up properties. The lender will pay a contractor directly for their work on a home. CMG loans has some wonderful programs for this. They also have a new loan created specifically for investors who like to keep their finances more fluid. Contact Dorothy Stevens at (509) 438-1436 for more information.
A Hard Money loan is used more like a cash option; higher interest rates and short term payoffs, typically used for home flippers. Contact me for more information.
FHA loans are government backed loans. These loans require a minimum downpayment of 3.5%, depending on the applicants credit score and debt to income ratio. FHA loans have stricter rules about the condition of the home (for example, no chipped and peeling paint).
Downpayment Assistance: This is like taking out a second loan, on top of your mortgage. This loan is for buyers who don’t have their own money for a downpayment.
Conventional Loans: These loans require a minimum downpayment of 3% of the purchase price, depending on the applicants credit score and debt to income ratio.
There are additional costs to consider when purchasing a home. Besides the downpayment, buyers should also consider that there are Title and Escrow and Lender fees- these are usually about 2-3% of the purchase price of the home (in addition to the downpayment). There is also the cost of an inspection- usually around $400-500 in the Tri Cities, depending on which inspector you use and the square footage of the home.
If you’d like to go over the home-buying process in person or over Zoom, we are happy to help. We are passionate about keeping our buyers informed about their options.