Home Purchase Loans


Home Purchase Loans can be conventional loans that meet bank-funding criteria set by Fannie Mae and Freddie Mac. Both of these stock-holding companies buy mortgage loans from lending institutions and secure them for resale to the investment community. Every year, form October to October, Fannie Mae and Freddie Mac establish limits on what constitutes a conforming loan in a mean home price.

Under present conventional guidelines, a minimum down payment of 5% is required as well as monthly private mortgage insurance (PMI). The requirement for PMI is waived with 20% or more down. Gift funds can be used to help with the down payment and closing costs as well as seller contributions to assist the borrower to pay for various closing costs.

Other loan options to purchase a home can be VA (veterans or surviving spouse of a veteran), FHA, and USDA loans. These are other methods besides conventional loans to purchase a home with little to nothing down. Please see our other categories that provide more specific information regarding these home loan products.

Conforming Loan Limits (depending on area...some areas are higher): This chart shows what the maximum conventional loan amount is for most areas in Washington State. If you loan amount is larger than this amount, then you will need to get Jumbo Loan financing which is a different loan product than conventional financing.

Number of Units Maximum original principal balance Alaska, Guam, Hawaii, and U.S. Virgin Islands only
1 $417,000 $625,500
2 $533,850 $800,775
3 $645,300 $967,950
4 $801,950 $1,202,925

NOTE: The conforming loan limit in Alaska, Hawaii, Guam and the Virgin Islands is 50% higher.