Current FHA guidelines, updated from one source.
The figures below are the FHA program’s own parameters, read from Lendmire’s centralized guideline source and refreshed on this page as HUD’s rules and the wholesale overlays change: the minimum investment, the decision score for maximum financing, the mortgage insurance premiums, and the qualifying ratios.
Up to 96.5% loan-to-value on a purchase
A 3.5% minimum investment opens a purchase at up to 96.5% loan-to-value; the investment can be the buyer’s own funds, a gift from a family member or other acceptable donor, or approved secondary financing.
Decision score for maximum financing
A decision score of 580 or higher is eligible for maximum financing; HUD’s rules allow lower scores at reduced leverage, but the wholesale programs Lendmire places FHA loans with start at 580, so that is the working floor.
Plus 0.50%–0.55% a year on most thirty-year loans
1.75% upfront plus 0.50%–0.55% a year on most thirty-year loans is the price of the leverage; larger base loans carry a higher annual tier, fifteen-year loans a lower one, and the calculator applies HUD’s schedule to the figures you enter.
Housing and total debt, manual reference
Ratios are a ladder rather than a wall: 31/43 with nothing extra, more with one documented factor, and 40/50 with two. Borrowers below the maximum-financing score are held to the base ratios.
| Decision score | Housing / total | Compensating factors |
|---|---|---|
| 500–579 or no credit score | 31% / 43% | not applicable — ratios may not exceed 31/43 (energy efficient homes 33/45) |
| 580 and above | 31% / 43% | no compensating factors required (energy efficient homes 33/45) |
| 580 and above | 37% / 47% | one of: verified and documented cash reserves; minimal increase in housing payment; residual income |
| 580 and above | 40% / 40% | no discretionary debt |
| 580 and above | 40% / 50% | two of: verified cash reserves; minimal increase in housing payment; significant additional income not reflected in effective income; residual income |
| Base loan | Leverage | Annual premium | Duration |
|---|---|---|---|
| Standard base loan amounts | at or below 90% LTV | 0.50% | 11 years |
| Standard base loan amounts | above 90% to 95% LTV | 0.50% | mortgage term |
| Standard base loan amounts | above 95% LTV | 0.55% | mortgage term |
| Larger base loan amounts | at or below 90% LTV | 0.70% | 11 years |
| Larger base loan amounts | above 90% to 95% LTV | 0.70% | mortgage term |
| Larger base loan amounts | above 95% LTV | 0.75% | mortgage term |
Refinances: rate-and-term to 97.75% loan-to-value on a home occupied for the past year; cash-out to 80% after twelve months of ownership and occupancy; streamline refinances of an existing FHA loan without an appraisal. Sellers and other interested parties may contribute up to 6% of the price toward closing costs; the entire minimum investment may be a gift.
Current FHA snapshot · updated October 1, 2026 · owner-occupied principal residences, one to four units · county loan limits apply — ask a Lendmire loan officer for the limit where you are buying · FHA loans are assumable · Lendmire is not affiliated with FHA or HUD.
Not a commitment to lend, not an offer of credit, not a quote. The figures shown are current FHA program parameters and wholesale overlays that change without notice and apply only after full underwriting of the borrower and the property; county loan limits apply and are confirmed by a loan officer. Rates, payments, and costs are provided in writing by a licensed loan officer. Licensed in sixteen states for consumer mortgages. Lendmire is not affiliated with or acting on behalf of FHA, HUD, or the federal government. Lendmire, LLC, NMLS #2371349. Equal Housing Opportunity.
What an FHA loan is — and how the file is qualified.
An FHA file in Washington is built from four pieces: the minimum required investment, the decision score, the mortgage insurance, and the qualifying ratios. Each has a rule, and each rule has a reason, which the cards below explain.
For the program overview, see Lendmire’s FHA loan program; for help with the minimum investment, the down payment assistance program.
The minimum required investment
The minimum investment is the part of the price the loan does not cover, measured against the lower of price and value. A Washington buyer can bring it from savings or from an acceptable gift, and a seller can contribute toward closing costs within HUD’s limit, which keeps the cash to close small.
The decision score sets the leverage
FHA reads credit through the decision score, and the threshold for maximum financing is far below conventional norms. A thin file or a non-traditional credit history is not a bar: it is underwritten manually on rent, utilities, and other payment records, with the ratios held to the base table.
Two premiums: upfront and annual
The upfront premium is a share of the base loan, usually financed into the total. The annual premium is charged monthly and depends on the term, the leverage, and the loan size; on a thirty-year loan at full leverage it runs for the term, and ends after eleven years only when the loan started at or below ninety percent loan-to-value.
Qualifying ratios and compensating factors
Two ratios decide the payment the file supports: the housing payment alone, and the housing payment plus every other monthly obligation, each as a share of effective income. The ladder in the snapshot shows the manual tiers; the calculator shows where a Washington scenario lands.
This is the same arithmetic the lender runs on a Washington file. The moving parts are the price, which the appraisal may lower, the down payment, which can be a gift, and the rate, which the lender sets at lock; the premium schedule does not move.
Where Washington’s first-time and moderate-income buyers shop — and how FHA fits.
An FHA loan is sized from a specific price and a specific income, but the market sets the range. These Washington figures from the Census describe ownership, value, and income across the state and the markets Lendmire tracks.
Statewide figures provide general market context, not an appraisal or an income calculation. Household income matters for the ratios, value for the investment and the premium, and the county limit for the ceiling; the Census tells you the market, the file tells you the loan.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Where Washington’s FHA buyers shop — market by market.
Six Washington markets, each with its own price picture and its own guide. The minimum investment, the decision score, and the premium schedule do not change from one to the next; the prices, the county limits, and the typical files do.
Seattle
In Seattle, owner households number near 158,945, about 44% of households, and the metropolitan market there produces a steady flow of FHA purchases and refinances. Census context: median value near $938,600, median household income near $123,860, population near 754K.
Spokane
In Spokane, owner households number near 57,325, about 59% of households, and the metropolitan market there produces a steady flow of FHA purchases and refinances. Census context: median value near $363,500, median household income near $70,064, population near 230K.
Tacoma
Tacoma holds one of the largest pools of owner households among Lendmire’s Washington markets — roughly 51,893, about 56% of households — a metropolitan market where FHA financing is the everyday route into a first home. Census context: median value near $479,600, median household income near $85,884, population near 223K.
Vancouver
Vancouver holds one of the largest pools of owner households among Lendmire’s Washington markets — roughly 41,385, about 51% of households — a metropolitan market where FHA financing is the everyday route into a first home. Census context: median value near $462,400, median household income near $81,338, population near 195K.
Bellevue
In Bellevue, owner households number near 32,234, about 52% of households, and the metropolitan market there produces a steady flow of FHA purchases and refinances. Census context: median value near $1,340,300, median household income near $165,576, population near 152K.
Kent
Kent holds one of the largest pools of owner households among Lendmire’s Washington markets — roughly 26,961, about 57% of households — a metropolitan market where FHA financing is the everyday route into a first home. Census context: median value near $587,800, median household income near $92,302, population near 136K.
Statewide, the program rules are the same in every Washington market: the minimum investment, the decision score for maximum financing, the premium schedule, the ratio ladder, the occupancy rule, and HUD’s property standards. What changes by county is the loan limit, which a Lendmire loan officer confirms for the county where you are buying.
Four ways Washington buyers put an FHA loan to work.
Washington borrowers use FHA for a handful of reasons that repeat: the first purchase with a small investment, the purchase on a recovering credit profile, the refinance of an existing FHA loan, and the cash-out refinance on a home with equity.
Buy a first home with the minimum investment
A Washington buyer with the income for the payment but not the cash for a conventional down payment uses FHA to purchase with the minimum investment and keeps the rest of the savings for moving costs and reserves.
Buy a condominium in an approved project
An FHA condominium file in Washington adds one step to the house file: the project review. Approved projects and single-unit approvals both work, dues count in the ratios, and the minimum investment and premiums are unchanged.
Take cash out of a home with equity
The cash-out refinance replaces the Washington home’s first mortgage with a larger FHA loan and hands over the difference, after twelve months of occupancy and with the premiums applied to the new loan; the ratios and the payment history decide the file.
Refinance an existing FHA loan
The streamline refinance is the simplest shape in the program: no appraisal, no full credit review, a net tangible benefit, and the existing FHA loan’s payment history as the main test. Many Washington owners use it when the market moves in their favor.
Estimate the FHA payment on a Washington price before requesting a quote.
Estimate the payment before you ask for a quote: the Washington price, the down payment, the term, the rate, and the escrows are the inputs, and the minimum investment and the premium schedule come from the same guideline source as the snapshot. The result is an estimate, and the rate shown is a published market benchmark, not an FHA offer.
Washington FHA payment estimate
Seeded from Washington’s median value at the program minimum; every field is editable and the result updates as you type.
Editable benchmark: 7.03% as of September 24, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $565,000 price near Washington’s median owner-occupied home value (kept where an FHA loan is realistic in most counties), the FHA minimum investment as the down payment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Washington (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; county loan limits are not checked here. Licensed in sixteen states for consumer mortgages. Lendmire is not affiliated with or acting on behalf of FHA, HUD, or the federal government.
Same buyer, three very different closings.
A Washington buyer choosing between FHA, conventional, and VA is choosing an insurance structure as much as a down payment. Here is how each one works and where it fits.
FHA, conventional with mortgage insurance, or VA.
FHA fits the Washington buyer whose profile a conventional file would turn away or price heavily: the leverage is high, the score threshold is low, and the premiums do not rise with a weaker score. The cost is insurance that stays for the term at full leverage.
Where FHA charges by schedule, conventional charges by score. A Washington buyer with strong credit and a small down payment may find the private premium smaller and the payment lower; a buyer with a modest score will not. See Lendmire’s conventional loan program.
VA undercuts FHA for the eligible borrower on the recurring costs: no investment, no monthly premium, no upfront premium, with a one-time funding fee in their place. The questions are eligibility, entitlement, and whether the home meets VA’s property standards. See Lendmire’s VA loan program.
The decision is rarely close once the profile is known. FHA tends to fit the modest score, conventional the strong score with equity to come, and VA nearly any file with eligibility. The comparison is run on the actual numbers, in writing.
What to prepare for a Washington scenario review.
What the lender looks at on a Washington FHA loan, and what you can gather before the review.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, the credit profile, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
Most surprises on a Washington FHA file trace back to one of these: a decision score that landed differently than expected, an appraisal with required repairs, a condominium without approval, or a county limit lower than the contract price.
Use these checks to keep the Washington file clean and fundable.
Run these before asking for a quote: know where the decision score lands, know how long the annual premium runs at your leverage, and know that the property and the price fit the program and the county limit.
- Confirm the score: a self-pulled score can land differently from the decision score.
- Know the premium: the exit from the premium is a refinance, not an equity threshold.
- Check the project: the lender confirms the status before the appraisal is ordered.
The decision score decides the leverage
The decision score is the lowest middle score among the borrowers, read from the lender’s report; a self-pulled score can land differently. At or above the threshold a Washington buyer reaches maximum financing; the wholesale programs behind these pages start there.
How long the annual premium runs
Unlike private mortgage insurance, the FHA annual premium does not cancel as the home gains value. On a Washington full-leverage loan the exit is a refinance; the calculator shows the premium’s rate and duration for the leverage entered.
Condominium project approval
Project approval is the one property question that can end an FHA file outright. A Washington buyer under contract on a condominium should have the lender confirm the project’s status or the single-unit path before paying for the appraisal.
The county loan limit
FHA caps the loan by county, and the cap changes each year. A Washington purchase above the county limit cannot close as an FHA loan at the program’s leverage; a larger investment brings the loan under the cap, or a conventional loan takes the file.
Two- to four-unit homes and rental income
Three- and four-unit homes carry an extra test on an FHA file: the property’s rents must cover the payment to HUD’s standard. A Washington buyer eyeing a fourplex should have the lender run the test before writing the offer.
From a Washington pre-approval to keys in hand.
An FHA file moves in a set order: pre-approval on the decision score and the ratios, the contract and the appraisal with HUD’s property standards, underwriting with any compensating factors documented, and closing with the premiums applied. The steps for a Washington buyer follow.
Pre-approval
A Washington pre-approval is a sizing exercise: the score, the income, the investment, and the county limit. The loan officer confirms eligibility against the program rules and puts the pre-approval in writing for the offer.
Contract and appraisal
The appraisal is the FHA step that surprises buyers most: it reports on condition as well as value. Required repairs are negotiated with the seller, and a low value raises the investment; the Washington contract is adjusted or the file moves on.
Underwriting
The file is scored by HUD’s automated system or underwritten manually, with income, assets, credit, and any compensating factors documented. Seasoning after a credit event is confirmed from the discharge or transfer papers, and the ratios are measured on effective income.
Closing
Closing is where the premiums become real: the upfront premium is financed into the total loan and the annual premium is part of the payment from month one. The Washington buyer takes the keys and HUD insures the lender.
A brokerage that matches the program to the buyer.
A brokerage sees several wholesale programs and all three government and agency routes; a single lender sees its own. For a Washington buyer that difference shows up in which program is recommended, because Lendmire runs them side by side and says which one costs less.
Three programs, one set of numbers
FHA, conventional, and VA are run on the same Washington price, score, and income before a recommendation is made. The buyer sees the payment, the insurance, and the cash to close on each, and the choice is made on the figures rather than on habit.
The premium explained before the offer
The insurance structure is the program’s cost, and Lendmire treats it as the first thing to explain rather than the last: how much, how long, and when a refinance would remove it for a Washington buyer.
Licensed, consumer-purpose, in writing
The parameters on this page are HUD’s and the wholesale overlays’; the terms for a specific Washington loan come from a licensed loan officer, in writing, after the review. Lendmire is a broker, never the lender, and not affiliated with the federal government.
Trusted by first-time buyers & families alike.
Washington FHA loan FAQs
What an FHA loan is, how much it takes to buy, what score it needs, what the mortgage insurance costs, and how the county limit works, answered for Washington buyers.
What is an FHA loan, and who is it for?
Think of it as a conventional mortgage with a federal insurance policy attached. The policy costs a premium, and it buys a smaller investment, a lower score threshold, and more room in the ratios than the agencies allow. Owner-occupied homes only, up to four units.
How much do I need to put down on an FHA loan in Washington?
The investment is the program’s minimum, applied to the lesser of price and appraised value. Putting down more lowers the premium’s duration: a loan that starts at or below ninety percent leverage sees the annual premium end after eleven years.
What credit score do I need for an FHA loan?
The threshold in the snapshot, read as the lowest middle score among the borrowers. Below it HUD allows a reduced-leverage loan, but the programs Lendmire places FHA loans with begin at the threshold. A thin or non-traditional credit file can qualify under manual underwriting.
How does FHA mortgage insurance work, and how long do I pay it?
Two premiums: an upfront premium, a share of the base loan that is usually financed into the total, and an annual premium charged monthly, set by HUD’s schedule for the term, the leverage, and the loan size. On a thirty-year loan at full leverage the annual premium runs for the term; it ends after eleven years only when the loan started at or below ninety percent loan-to-value.
What is the FHA loan limit in Washington?
Ask a loan officer for the county’s current limit; it changes yearly and by unit count. The limit caps the loan amount, so a Washington purchase above it is still possible with a larger investment or on a conventional loan.
Can I get an FHA loan after a bankruptcy or foreclosure?
Yes, once the event is seasoned under HUD’s rules: a bankruptcy counts from discharge, a foreclosure or deed-in-lieu from the transfer of title, a short sale from its closing, each with its own waiting period and exceptions for documented extenuating circumstances. Clean recent housing history matters as much as the seasoning.
Can I use an FHA loan to buy a condominium?
In an approved project or through single-unit approval. A Washington buyer under contract on a condominium should have the lender check the status early, because a project with neither cannot close as an FHA loan.
Should I choose FHA or a conventional loan?
It depends on the decision score, the down payment, and how long you will keep the loan. FHA prices its insurance by schedule, so a modest score pays the same premium as a strong one; conventional prices the score, so a strong score pays a small, cancellable premium. A Washington loan officer runs both on the same numbers and shows which costs less.
Do I have to live in the home to use an FHA loan?
FHA insures owner-occupied homes only. Occupancy is documented at closing and expected to last at least a year; a non-occupying co-borrower is allowed, but someone on the loan has to live in the Washington home.
What does an FHA appraisal check?
Value and condition. An FHA Roster appraiser values the home and checks it against HUD’s minimum property requirements for safety, soundness, and security; required repairs are completed before closing or through a repair escrow where permitted. A value below the contract price raises the buyer’s investment.
Run the Washington FHA numbers, then get the terms in writing.
Start with a scenario review: the price, the down payment, the decision score, and the income. A licensed Lendmire loan officer runs FHA against conventional and VA on the same numbers and provides the terms in writing.
This guide covers Washington — for the program overview, see Lendmire’s FHA loan program.
All Washington city guides (6): Bellevue · Kent · Seattle · Spokane · Tacoma · Vancouver
Related programs: Down Payment Assistance · FHA 203(k) Rehab Loans · Conventional Loans