Current FHA guidelines, updated from one source.
Read these as program parameters, not an offer: the minimum investment, the credit score for maximum financing, the mortgage insurance premiums, and the ratios, all from one guideline source that this page refreshes from.
Up to 96.5% loan-to-value on a purchase
3.5% of the purchase price or appraised value, whichever is lower, is the minimum investment on an FHA purchase; the loan covers the rest, up to 96.5% loan-to-value, and a gift may cover the whole investment.
Decision score for maximum financing
The program opens at a 580 decision score for maximum financing; borrowers without a usable score are eligible under manual underwriting on non-traditional credit, and the ratios then follow the manual ladder below.
Plus 0.50%–0.55% a year on most thirty-year loans
The upfront premium is 1.75% of the base loan and is financed into the total; the annual premium runs 0.50%–0.55% on most thirty-year loans and ends after eleven years only when the loan started at or below ninety percent loan-to-value.
Housing and total debt, manual reference
31/43 is the starting point: the housing payment and the total debt as shares of effective income. Cash reserves, a minimal payment increase, or residual income stretch the ratios tier by tier, up to 40/50 with two factors.
| 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.
For informational purposes only. This is not a commitment to lend or extend credit, an offer, or a quote. Program parameters shown are FHA guidelines and wholesale lender overlays, are subject to change without notice, and every figure depends on the borrower, the property, the selected program, and full underwriting. The rate, the payment, and any costs for a specific loan are provided in writing by a licensed loan officer. County loan limits apply and are confirmed by a 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 loan is a conventional-looking mortgage with a federal insurance policy attached: HUD insures the lender against loss, and in exchange the program sets the minimum investment, the credit rules, the premiums, and the ratios. The four cards below cover each piece as it applies to a Seattle file.
For the program overview, see Lendmire’s FHA loan program, or the statewide guide at FHA Loans in Washington.
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 Seattle 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
The decision score is the lowest of the borrowers’ middle scores. At the maximum-financing threshold and above, a Seattle buyer reaches the full purchase leverage; HUD allows lower scores at reduced leverage, but the wholesale programs behind these pages start at the threshold, so that is the practical floor.
Two premiums: upfront and annual
Mortgage insurance is the price of the leverage. HUD sets both premiums by schedule rather than by credit score, which is why a Seattle buyer with a modest score pays the same premium as one with a strong score; a conventional loan with private insurance prices the score, which is the comparison worth running.
Qualifying ratios and compensating factors
Effective income is the income the lender can document as stable and likely to continue, and the ratios are measured against it. A Seattle buyer with a modest score is held to the base ratios; above the maximum-financing score the compensating factors open the higher tiers.
The result is an estimate, not a decision: the appraisal may land below the contract price, the lender sets the rate at lock, and the ratios are measured on effective income. What does not change is the program structure the calculator reproduces.
Where Seattle’s first-time and moderate-income buyers shop — and how FHA fits.
Affordability is a local picture. The figures below describe Seattle’s owner households, home values, and incomes, the backdrop an FHA purchase is sized against, with the data drawn from the U.S. Census Bureau.
These are context figures, not underwriting inputs. Read these figures as the range of purchases in the market, not as a forecast of any one file. The lender appraises the specific home, documents the specific income, and applies the specific decision score.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Seattle neighborhoods, distinct FHA files.
Six Seattle neighborhoods, six FHA pictures: the cards below describe the housing stock, the price range, and the program question that comes up most in each.
Condominiums and townhomes
In Seattle, a condominium near the job is the first home many buyers can reach; the program pairs with it as long as the project clears HUD’s review or the unit qualifies on its own, and the file is otherwise the same as for a house. The median owner-occupied home value in Seattle runs near $938,600 on the latest Census estimate.
Higher-value homes
The higher-value Seattle file is a limit question, not an eligibility question. The county limit caps the loan amount, and the buyer either adds investment to fit under it or chooses the conventional route for the whole purchase. About 56% of Seattle’s households rent — roughly 204,521 renter households on the latest Census estimate.
Two-to-four-unit homes
Seattle duplexes and small multi-unit homes are FHA purchases at the same minimum investment as a house when the buyer occupies one unit. Rental income from the other units counts within HUD’s rules, and three- and four-unit homes face a self-sufficiency test on the rents. Seattle counts a population near 754K within the Seattle-Tacoma-Bellevue, WA area.
Established close-in neighborhoods
Older Seattle homes are well inside the program, with one recurring question: HUD’s minimum property requirements. A home that needs repairs to meet them closes after the repairs or through a repair escrow where permitted. Roughly 158,945 Seattle households own their homes on the latest Census estimate — 44% of all households, the pool an FHA purchase joins.
Newer infill and recent construction
Infill rows and newer Seattle construction appraise cleanly under HUD’s standards, and the question there is price: a contract near the county limit needs the limit confirmed before the offer, and a larger investment where the price runs past it. Median household income in Seattle sits near $123,860 on the latest Census estimate.
Historic districts
A historic Seattle home is eligible like any other, with the appraiser’s condition findings as the usual detour. Buyers and sellers who expect them settle the repairs in the contract rather than at the closing table. On a home at Seattle’s median value, the FHA minimum investment comes to about $32,900 — the cash the program asks a buyer to bring before closing costs.
Neighborhood changes the price and the property type, not the rules: the minimum investment, the premiums, the decision score, and the ratios apply the same way on every Seattle street, and the county limit caps the loan everywhere in the county.
Four ways Seattle buyers put an FHA loan to work.
FHA is more than a first-purchase program: it refinances, it takes cash out, it finances small multi-unit homes, and it accepts the buyer a conventional file would turn away. These are the four uses that bring Seattle borrowers to it most often.
Take cash out of a home with equity
The cash-out refinance replaces the Seattle 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.
Buy a small multi-unit home and live in one unit
A duplex, triplex, or fourplex in Seattle is an FHA purchase when the buyer occupies one unit. The investment is the same small share of the price, and the rental income from the other units is documented toward the ratios under HUD’s multi-unit rules.
Buy on a recovering credit profile
Recovered credit is the program’s intended case. A Seattle buyer with a seasoned bankruptcy or foreclosure and two clean years of housing payments is inside the rules, with the ratios held to the base table where the score requires it.
Buy a condominium in an approved project
An FHA condominium file in Seattle 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.
Estimate the FHA payment on a Seattle price before requesting a quote.
The calculator applies HUD’s structure to a Seattle scenario: enter the price and the down payment, pick the term, and it returns the base loan, the upfront premium financed, the total loan, principal and interest, the monthly premium for that leverage and loan size, taxes and insurance, and the ratios if you enter income. The rate field carries the weekly Freddie Mac benchmark as a market reference, not a quote.
Seattle FHA payment estimate
Seeded from Seattle’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 $600,000 price near Seattle’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.
Before deciding on FHA, it helps to see what it is not: not the only low-down-payment route, not the only forgiving-credit route, and not the cheapest insurance for a strong profile. The comparison below puts the three next to each other for a Seattle buyer.
FHA, conventional with mortgage insurance, or VA.
The program’s strengths are the investment, the score, and the ratios; its cost is the insurance structure. A Seattle buyer with a modest score and a small down payment usually pays less each month on FHA than on conventional with private insurance.
Conventional financing asks for a higher score and prices it, in exchange for insurance that can be cancelled and no upfront premium. The comparison is worth running for any Seattle buyer whose score sits above the agency norms. 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 Seattle scenario review.
Most of this is standard mortgage documentation; have these ready for a Seattle review all the same.
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.
Here is what moves a Seattle file: the decision score, the premium schedule, the appraisal and the property standards, the project approval, the county limit, the ratios, and the seasoning after a credit event.
Use these checks to keep the Seattle file clean and fundable.
Three checks before the review keep a Seattle FHA file on track: confirm the decision score, understand the mortgage insurance you will carry, and settle the property questions early.
- Confirm the score: the threshold in the snapshot opens maximum financing and the ratio ladder.
- Know the premium: ten percent down or more ends it after eleven years.
- Plan the units: rental income from the other units counts within HUD’s rules.
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 Seattle 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 Seattle full-leverage loan the exit is a refinance; the calculator shows the premium’s rate and duration for the leverage entered.
Two- to four-unit homes and rental income
FHA finances owner-occupied homes of up to four units at the same investment as a house, with HUD’s rules for counting rental income from the other units and, on larger properties, a self-sufficiency test. A Seattle buyer occupying one unit qualifies on the combined picture.
The county loan limit
FHA caps the loan by county, and the cap changes each year. A Seattle 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.
Occupancy and the non-occupying co-borrower
Second homes and rentals are outside the program. A Seattle buyer who will not live in the home cannot use FHA for it; a family member who will not live there can still co-sign, with full leverage preserved on a one-unit purchase.
From a Seattle pre-approval to keys in hand.
From the first conversation to keys in hand, a Seattle FHA purchase follows four steps. Here is what happens at each one.
Pre-approval
The first conversation settles the shape: where the decision score lands, what the ratios support, whether a gift will cover the investment, and whether FHA is the right program next to conventional and VA for the Seattle purchase.
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 Seattle contract is adjusted or the file moves on.
Underwriting
An automated approval follows the system’s finding; a manual file follows the ratio ladder. Either way, the Seattle underwriter verifies the income, the assets, the credit history, and the property, and issues the approval with its conditions.
Closing
At closing the upfront premium is added to the loan, the escrows for taxes and insurance are set up, and the annual premium begins with the first payment. A Seattle buyer signs the note and the security instrument, occupies the home within HUD’s window, and the loan is insured.
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 Seattle 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 Seattle 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 FHA annual premium’s duration is decided at origination, and a buyer should know it before signing a contract. Lendmire states it plainly for the Seattle leverage chosen and explains the refinance path that usually ends it.
Licensed, consumer-purpose, in writing
The parameters on this page are HUD’s and the wholesale overlays’; the terms for a specific Seattle 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.
Seattle 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 Seattle buyers.
What is an FHA loan, and who is it for?
A government-insured mortgage for a principal residence. The insurance is what allows the small investment and the forgiving score; the borrower pays for it through an upfront premium and an annual premium. It fits the Seattle buyer with a modest down payment or a credit profile that is still being built.
How much do I need to put down on an FHA loan in Seattle?
A small share of the price, fixed by HUD and shown in the snapshot. On a Seattle home at the median value the calculator shows what it comes to in dollars; the buyer can bring it from savings or from an acceptable gift, and the seller can help with closing costs.
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 parts, both in the snapshot: the upfront premium on the base loan and the annual premium on most thirty-year loans. The duration is the detail to know before the contract: eleven years at or below ninety percent leverage, the loan term above it.
What is the FHA loan limit in Seattle?
County limits apply, differ by unit count, and move annually; the current figure for the county is confirmed by a Lendmire loan officer at pre-approval. These pages state the program’s structure rather than a number that changes every year.
What happens after my Seattle offer is accepted?
The Seattle contract goes to the lender, the appraisal is ordered from an FHA Roster appraiser, and underwriting follows. Required repairs or a low value are the usual detours; a loan officer keeps the timeline realistic.
Do I have to live in the home to use an FHA loan?
At least one borrower must move in within two months and stay at least a year. A Seattle parent can co-sign as a non-occupying co-borrower under HUD’s family rules without living there, at full leverage on a single-unit home.
Should I choose FHA or a conventional loan?
FHA wins the modest score and the forgiving ratios; conventional wins the strong score that wants cancellable insurance and no upfront premium. The answer for a Seattle buyer comes from the numbers, not the label.
Can the seller pay my closing costs on an FHA loan?
They can, up to the share of the price in the snapshot. Anything above it is treated as a price reduction for sizing the loan, and nothing from the seller may fund the minimum investment.
Can I get an FHA loan after a bankruptcy or foreclosure?
After the waiting period, yes. Each event has its own period counted from a specific date, and the lender confirms it from the discharge or transfer papers; gather those dates before the review.
A Seattle FHA loan sized to the price, the score, and the ratios.
Ready when you are: a Seattle review sizes the loan, settles the program, and delivers the written terms. Nothing on this page is a commitment to lend.
This guide covers Seattle — for the statewide guidelines, markets, and scenarios, see FHA Loans in Washington, part of Lendmire’s FHA loan program.
Nearby markets in Washington: Bellevue · Kent · Tacoma · Vancouver · Spokane
Related programs: Down Payment Assistance · FHA 203(k) Rehab Loans · Conventional Loans