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Home buyers in Tacoma, Washington have a lot of different mortgage options to choose from, and that includes the popular FHA loan program.
FHA-insured mortgages allow you to buy a property in Tacoma with a down payment as low as 3.5%. They also have flexible qualification criteria, which means you don’t need perfect credit to qualify.
In this guide, we’ll look at the key requirements for FHA loans in Tacoma, WA and why they are so popular among home buyers.
The FHA loan program can cause confusion among first-time home buyers in Tacoma who aren’t familiar with it. So let’s start with a brief introduction.
An FHA loan is a type of mortgage that gets insured by the U.S. government. These government-backed mortgages in Tacoma make it easier for people with lower credit scores or smaller FHA loan down payments to buy a home.
As you can see, this mortgage program is built around insurance. It basically works like one big insurance fund, resulting in a more “forgiving” mortgage product.
Most home buyers in Tacoma use conventional mortgage loans when buying a house. A conventional loan gets originated (and sometimes insured) solely within the private sector, with no direct involvement from the government.
The FHA loan program comes in second, in terms of usage and volume.
And speaking of those requirements, let’s shift gears and look at what it takes to qualify for an FHA loan in Tacoma, Washington.
Do you have decent credit and a manageable level of debt?
Can you come up with a 3.5% down payment on a home purchase?
If you answered yes to both, you might be a good candidate for an FHA loan.
The Federal Housing Administration requires all home buyers who use this program to make a down payment of 3.5% or more. This means the loan can cover up to 96.5% of the purchase price, with the borrower covering the rest. This trait makes these types of low down payment home loans in Tacoma appealing to many buyers, especially those with minimal capital to invest in a home.
Borrowers can also use gift money from a third party (like a family member) to cover the minimum required down payment for an FHA loan.
You’ll also need to have a manageable level of debt. The FHA prefers borrowers to use no more than 43% of their monthly income on their combined recurring debts, including the mortgage payments. But there’s some flexibility here as well.
The most important qualification has to do with your income situation. The lender will review your income and employment status to make sure you can comfortably afford the monthly payments. This is in everyone’s best interest.
FHA loans also have limits as to their maximum size. These limits can vary from one county to the next because they’re based on home prices.
But these limits shouldn’t be a problem for most buyers in Tacoma.
While they can vary by county, the size limits for FHA loans are applied consistently across metropolitan areas. So all counties located within a specific metro area tend to have the exact same FHA loan limit.
Here’s how the Federal Housing Administration explains it:
“FHA’s Single Family forward mortgage limits are set by Metropolitan Statistical Area (MSA) and county and are published periodically … The limits in these areas are set using the county with the highest median price within the MSA.”
The 2025 FHA loan limit for Tacoma and all of Pierce County is $1,037,300.
The entire Seattle metro area receives a relatively high loan limit, mainly due to high home prices in cities like Bellevue and Sammamish.
The city of Tacoma, on the other hand, has much lower home values. As of late 2024, the median house value for the city was around $475,000. That’s much lower than the median price for the broader metro area.
Despite this relative affordability, Tacoma still has an FHA loan limit north of $1 million due to the metro-level assignment process described above.
If you use an FHA loan to buy a house in Tacoma, you should have plenty of financing room without coming anywhere near the loan limit. Most properties listed for sale in Tacoma, Washington are priced well below the FHA loan limit for Pierce County.
To apply for an FHA loan in Tacoma, WA, follow these steps:
Sammamish Mortgage offers FHA loans as well as conventional for home buyers in Tacoma, WA. We serve the entire state of Washington and can help you choose the best financing option. Visit our website to get an instant rate quote, or call our office today to get your questions answered!
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.
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