Arlington VA Home Loans
Arlington County VA is an affluent area just outside of the District of Columbia. It is the 2nd largest city area in the Metro DC region and home to many venues of historical significance, including Arlington National Cemetary & memorials for several branches of our nation's armed forces. Ronald Reagan airport is also located in Arlington County.
In 2016, Arlington's real estate market saw 2,929 residential real estate transactions take place with a wide variety of sales prices. On the high end, $3.7 million was the highest priced Arlington home sold in 2016. On the opposite end of the spectrum, the low sales price for the year was $90,000. The average of all sales yielded a sales price of $631,299, and homes remained on the market for 50 days on average.
For more detailed information on Arlington and local homebuying info you can click on the house!
Arlington VA FHA Loans
FHA loans in Arlington require just a 3.5% down payment, with gift funds being an allowable source of down payment funds. FHA also allows up to 6% sellers assistance toward closing costs, so while home values may be higher than the national median, Arlington home buyers can still purchase a new home without breaking the bank. Even better, since Arlington is considered a high cost area, HUD allows FHA borrowers to finance up to $636,150 in 2017, an amount much higher than allowable in many other areas of the state and country.
FHA loans are very borrower friendly, especially for lower-moderate income buyers. Credit requirements are more forgiving than conventional loans, and rates are considerably lower than conventional counterparts.
The one downside to FHA loans is that with less than a 10% down payment, the PMI is attached to the mortgage loan for the life of the loan (until the home is sold or a refinance takes place). For this reason, FHA loans are great first loans, but not the best permanent loans with less than 10% down.
Arlington VA Conventional Loans
An outstanding loan option for many Arlington home buyers comes in the form of Conventional lending. Conventional loans require 3% down (for first time buyers, 5% for everyone else), along with low rates, and affordable PMI rates for folks with good credit (conventional PMI is not as forgiving as FHA for lower FICO scores). With 20% or more down payment, borrowers do not need to have PMI at all with a conventional loan.
In Arlington $636,150 is the maximum conventional loan amount available in 2017. Like FHA, sellers assistance is allowed to help buyers with closing costs, but with less than 10% down, a seller may only contribute up to 3% of the purchase price. With 10% or more down, sellers may contribute up to 6%.
Conventional pricing ranges from wonderful to high, as it works on a sliding scale - the better the credit and higher the down payment, the better the loan terms. Rates get worse as down payment & FICO scores decrease, which is why it's such a good idea to get preapproved and talk with a loan officer at least a few months before buying.
Other Loan Programs:
Arlington VA VA Loans are available with a 0% down payment requirement to qualified buyers. With such close proximity to Washington DC and a large military presence, VA loans are a wonderful resource for the area, as for many people they are the best loans out there with the most attractive terms - low rates, little to no money out of pocket required to buy, and low or no mortgage insurance requirements, depending on details of military service.
Jumbo loans in Arlington, VA are loans that exceed the conventional, FHA, or VA loan limits. In Arlington, financing up to $5 million is available for higher priced properties, and many jumbo programs require only 10% down, with some very attractive rates and terms.
Portfolio "Niche" products work to fit unique circumstances which prevent buyers from accessing the loan products discussed above. Bank statement loans, asset depletion (using assets for income), and loans for foreign nationals all fall into this bucket. Many of these loans can be done with conventional or jumbo loan amounts as well, making them a resource for everyone to use. Typically, rates are a big higher and down payment requirements slightly greater, but these products help more people into homes that otherwise would be forced to rent.
If you have any questions on any of these loan products or others, you can ask an expert here.
Arlington VA offers tremendous opportunity for home buyers & home owners, being so close to so much, offering so many recreational and occupational opportunities, with easy access to metro centers and more rural areas alike. If you're considering buying a home in Arlington or the surrounding areas, or would like more area-specific information, I would highly recommend Amanda Davidson and her team. Amanda and her team know the local marketplace, and focus their expertise on the fine details of buying and selling real estate to ensure their clients have a one of a kind experience that other Realtors aren't offering.
If you have any questions about an Arlington, VA mortgage, call 484.680.4852 or ask an expert here. We specialize in residential home purchase loans and refinances.