Loan Programs

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Absolute Mortgage in Issaquah offers a wide range of loan programs. Check out some of the of our standard programs below along with required down payment and other details.

Summer Relaxing, USDA home representation

USDA (United States Department of Agriculture) loans are for eligible areas only and subject to income restrictions. USDA’s minimum down payment is zero and is restricted to owner occupied properties only. The maximum seller contribution is 6% and there is an upfront Mortgage Insurance and funding fee of 2% which is financed into the loan. USDA loans do include mortgage insurance which is 0.4% of the unpaid loan balance divided by 12 and paid on a monthly basis. One great advantage to the loan program is no down payment required. You can learn more about the USDA loan program here.

luxury house, Conventional home loan program representaion

Standard Conventional loans have three different minimum down payments. For owner occupied properties, 5% is the minimum down payment, 10% for second homes and 20% for investment properties. Maximum seller contributions for an owner occupied home is 90.01-95%, LTV 3%, for second homes its 75.01-90% LTV 6% and investment properties are all 2%. Conventional loans have no upfront mortgage insurance or funding fees and they do include mortgage insurance if the down payment is less than 20%. Some great advantages to the Standard Conventional loan is low rates for borrowers with excellent credit, no limits on income, area or occupancy and the loan is typically more cost effective

Veterans Loan

VA loans (Veterans Affairs) must meet VA eligibility requirements. VA loans offer zero down payment options and are for owner occupied and military qualified veterans. Maximum seller contributions are 4% with a 1.75% upfront mortgage insurance and funding fee. VA loans do come with mortgage insurance at 1.35% of the unpaid principal balance divided by 12 and paid on a monthly basis. Some advantages to the VA program are no down payment, flexible credit guidelines, and add a seller credit for closing fees and Veteran can purchase with no money out of pocket. Learn more about VA loans here.

FHA

FHA (Federal Housing Administration) loans offer a minimum down payment at 3.5% in an owner occupied property. Gift funds are allowed in this loan program. The maximum seller contribution is 6% and there is a upfront mortgage insurance and funding fee up to 1.75%. FHA loans do come with mortgage insurance at 1.35% of the unpaid loan balance divided by 12 and paid on a monthly basis. Some great advantages to the FHA loan program are flexible guidelines, more forgiving on credit than conventional loans, low interest rates, and no reserves required for single family and duplex. Learn more about the FHA loan program here.

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