Which Home Loan Fits Your Seattle or Eastside Purchase?

On this page

Conforming and jumbo

Fixed rates and ARMs

FHA, VA and USDA

Buying before selling

Self-employed buyers

Renovation financing

FAQs

Financing series

The right mortgage conversation starts with what you are trying to accomplish. Buying a first home, purchasing before selling and financing a fixer-upper can call for different tools.

I would use this guide to frame questions for a lender. These categories overlap: a loan can be conventional, jumbo and adjustable-rate at the same time. Eligibility and actual terms depend on the lender, borrower and property.

Conventional conforming and jumbo loans

Conforming conventional loans follow Fannie Mae or Freddie Mac requirements, including the applicable loan limit. Jumbo loans exceed that limit. Both can serve buyers purchasing a primary home, with other occupancy options subject to program rules. Compare them when the planned mortgage is near the local loan-size boundary.

Fixed-rate mortgages and 7/6 ARMs

A fixed-rate mortgage provides a stable principal-and-interest payment; taxes and insurance can still change. A 7/6 ARM fixes the interest rate for seven years, then can adjust every six months under its terms. An ARM may be worth comparing when the initial fixed period fits your expected ownership timeline. Ask how the payment could change if you stay longer, and review the index, margin and caps.

FHA, VA and USDA loans

FHA-insured financing may be useful for eligible buyers comparing down-payment and credit options, with mortgage insurance costs to evaluate. VA-guaranteed loans serve eligible veterans, service members and certain surviving spouses; no-down-payment options may be available, and a funding fee may apply unless exempt. USDA financing can serve eligible households buying a primary home in an eligible location, subject to income and other requirements. Check the actual address rather than assuming every Eastside property qualifies.

Bridge loans: buying before selling

A bridge loan may provide short-term access to equity in the current home to help purchase the next one. It can create timing flexibility when the sale proceeds have not arrived. Compare fees, payment obligations, maturity and the repayment plan if the existing home takes longer to sell.

Second mortgages and HELOCs

A home equity loan or line of credit can provide access to equity while leaving an existing first mortgage in place. That may be useful for approved improvements or other permitted purposes. Compare total borrowing costs and combined payments. A HELOC may have a variable rate and different draw and repayment periods.

Bank statement loans for self-employed buyers

Some programs use 12 or 24 months of eligible personal or business statements to document income. They may be worth comparing when traditional tax-return analysis does not fit the borrower’s situation. The lender still evaluates the records; deposits, transfers and business expenses need review. Compare conventional qualification first, then costs, reserves and any prepayment terms.

DSCR loans for investment properties

A debt-service-coverage-ratio loan focuses on a rental property’s qualifying income relative to its required debt payment. It may suit an investor comparing alternatives to traditional personal-income qualification. It is not a primary-residence shortcut. Ask how rent, expenses, vacancy, reserves and any prepayment penalty affect the loan and your own investment analysis.

Renovation financing for a home with potential

FHA 203(k), Fannie Mae HomeStyle Renovation and Freddie Mac CHOICERenovation are programs to discuss when buying or refinancing a property that needs work. VA and USDA renovation options may also be available through participating lenders for eligible borrowers and properties. Scope, contractor approval, completion deadlines, inspections and contingency funds can affect what is feasible. Evaluate the whole project before making an offer.

Physician mortgages

Some lenders offer programs for eligible medical professionals that account for their career stage and income documentation. Depending on the program, low- or no-down-payment options without monthly PMI may be available. Compare eligible professions, loan limits, student-debt treatment and total cost. No down payment does not mean no cash needed at closing.

Construction loans

Construction financing supports a new build. Some one-time-close options can combine the land purchase, construction and permanent mortgage. Compare them when building is a realistic alternative to an existing home. Builder approval, plans, permits, appraisal, draw schedules and a budget for overruns deserve attention before committing to land.

Choose the tool around the purchase

Ask the lender which options fit, what each costs and what remains conditional. At Upside Properties, we can connect that financing discussion to the home’s condition, market value and transaction timeline so the loan supports the purchase you intend to make.

For help planning your search, start with our Seattle and Eastside buyer’s guide.

About Brian Side

Brian Side is a top-producing REALTOR® on Seattle’s Eastside and the founding partner and managing broker of Upside Properties. An active real estate investor with a background in finance, he brings deep local market knowledge to each client’s goals. Get in touch with Brian.

Homebuyer financing series

Next read · Part 2
Fannie Mae vs. Freddie Mac

1. Which home loan fits?(this article)
2. Fannie Mae vs. Freddie Mac
3. Conventional vs. jumbo loans (coming up)
4. How much down payment do you need? (coming up)
5. Fixed rates, ARMs and rate buydowns (coming up)
6. Mortgages for self-employed buyers (coming up)
7. Prequalification, preapproval and pre-underwriting (coming up)
8. Financing a luxury home (coming up)