1. What is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help lower-income and first-time homebuyers qualify for home loans with more flexible requirements than conventional loans.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment
• \( P \) — Principal loan amount
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in years × 12)

Explanation: This formula accounts for both principal and interest payments over the life of the loan.

3. FHA Loan Benefits in Washington

Details: FHA loans in Washington state offer benefits like lower down payments (as low as 3.5%), more flexible credit requirements, and competitive interest rates, making homeownership more accessible.

4. Using the Calculator

Tips: Enter the loan amount in dollars, annual interest rate as a percentage (e.g., 3.5 for 3.5%), and loan term in years. The calculator will show your estimated monthly payment and total loan cost.

5. Frequently Asked Questions (FAQ)

Q1: What are current FHA loan limits in Washington?
A: Limits vary by county but range from $498,257 to $1,149,825 for single-family homes in 2023.

Q2: What's the minimum credit score for FHA in Washington?
A: Most lenders require at least 580 for 3.5% down, though some may accept 500 with 10% down.

Q3: Are there special programs for Washington homebuyers?
A: Yes, programs like the Washington State Housing Finance Commission offer down payment assistance.

Q4: How does mortgage insurance work with FHA?
A: FHA loans require both upfront (1.75% of loan) and annual mortgage insurance (0.45-1.05%).

Q5: Can I use this for refinancing calculations?
A: Yes, the same formula applies to refinancing calculations.