Spokane, Washington, has become one of the most attractive housing markets in the Pacific Northwest. With its affordable cost of living, growing economy, and beautiful scenery, more homebuyers are looking to settle in this vibrant city. However, navigating the mortgage process can be overwhelming, especially for first-time buyers.
In this guide, we'll break down everything you need to know about how to get a mortgage in Spokane, from loan options to lender recommendations and tips to improve your mortgage eligibility. The following is not advise, it is recommended to speak with a lender for specifics.
Understanding Spokane’s Housing Market
Before applying for a mortgage, it’s essential to understand Spokane’s real estate market. The city has experienced steady home price increases, with demand rising.
Key Trends in Spokane’s Real Estate Market
Median Home Price: As of 2025, the median home price in Spokane is around $400,000.
Market Competitiveness: Well priced homes often receive multiple offers, making pre-approval essential.
Best Neighborhoods: Popular areas include South Hill, Spokane Valley, North Spokane, and Five Mile Prairie.
Types of Mortgages Available in Spokane
Several mortgage options are available depending on your financial situation and eligibility:
1. Conventional Loans
Offered by banks and credit unions.
Require at least a 620 credit score.
Minimum 3-5% down payment required.
2. FHA Loans
Ideal for first-time buyers.
Lower credit score requirements (580 or higher).
Down payment as low as 3.5%.
3. VA Loans
Available to military veterans and active service members.
No down payment required.
No private mortgage insurance (PMI) needed.
4. USDA Loans
Designed for rural homebuyers (some Spokane areas qualify).
Zero down payment required.
Must meet income eligibility guidelines.
Mortgage Requirements in Spokane
Before applying for a mortgage, ensure you meet the following criteria:
Credit Score: A minimum of 620 for most conventional loans; 580 for FHA loans.
Debt-to-Income (DTI) Ratio: Ideally below 43%.
Down Payment: Ranges from 0% to 20%, depending on the loan type.
Stable Income & Employment History: At least two years of steady employment.
How to Improve Your Mortgage Eligibility
If you don’t qualify for the mortgage you want, here are some ways to improve your chances:
Boost Your Credit Score: Pay off credit card balances and avoid late payments.
Reduce Your Debt-to-Income Ratio: Pay down outstanding loans and avoid new debt.
Save for a Higher Down Payment: A larger down payment can secure better loan terms.
Finding the Best Mortgage Lenders in Spokane
Choosing the right lender is crucial for getting the best mortgage deal. Some top-rated lenders in Spokane include:
STCU (Spokane Teachers Credit Union): Offers competitive rates for first-time buyers.
Washington Trust Bank: Provides personalized mortgage solutions.
Numerica Credit Union: Known for flexible home loan options.
Getting Pre-Approved for a Mortgage
Why Pre-Approval Matters
A mortgage pre-approval strengthens your offer when buying a home. It shows sellers that you’re a serious buyer with secured financing.
Documents Needed for Pre-Approval
Recent pay stubs (last 30 days)
W-2s and tax returns (last 2 years)
Bank statements (last 60 days)
Credit report authorization
Mortgage Application Process
Once pre-approved, follow these steps to secure your home loan:
Find a home and make an offer.
Submit a full mortgage application.
Complete the home appraisal process.
Receive final loan approval.
Close on your home and sign the paperwork.
Interest Rates and Loan Terms in Spokane
Interest rates fluctuate, but Spokane's mortgage rates typically range between 6-7% in 2024. The most common loan terms are:
30-Year Fixed: Lower monthly payments, higher interest over time.
15-Year Fixed: Higher payments, but lower overall interest.
Government Assistance Programs in Spokane
First-time homebuyers can take advantage of several programs, including:
Washington State Housing Finance Commission (WSHFC) Programs
Down Payment Assistance Loans
Home Advantage Loan Program (low-interest loans)
The Role of a Real Estate Agent
A local real estate agent can help:
Find homes that fit your budget.
Negotiate better mortgage terms.
Handle paperwork efficiently.
Closing Costs and Other Fees
Homebuyers in Spokane should budget for:
Loan Origination Fees: 0.5% - 1% of the loan amount.
Appraisal Fee: $500 - $700.
Title Insurance: $1,000 - $2,000.
Property Taxes & Home Insurance: Varies by location.
Timeline for Getting a Mortgage
On average, getting a mortgage in Spokane takes 30-45 days from application to closing. The process can be faster if all documents are in order.
Common Mortgage Pitfalls to Avoid
Not Shopping Around for Lenders: Compare rates from multiple lenders.
Ignoring Closing Costs: Be prepared for 2-5% of the home price in additional fees.
Choosing an Adjustable-Rate Mortgage (ARM) Without Understanding Risks: Fixed rates are often safer long-term.
Conclusion
Getting a mortgage in Spokane requires careful planning, financial preparation, and choosing the right loan type. Whether you’re a first-time buyer or looking to refinance, following these steps will help you navigate the process smoothly. Start by checking your credit score, comparing lenders, and getting pre-approved to secure your dream home in Spokane. I am Nick Briggs, a Realtor with Windermere City Group in Spokane and would love to help you out! If you need any recommendations for a lender, feel free to reach out!
FAQs
What credit score do I need to get a mortgage in Spokane?
Most lenders require a minimum 620 credit score for conventional loans, but FHA loans allow scores as low as 580.
How much down payment is required for a mortgage in Spokane?
It varies by loan type. FHA loans require 3.5%, conventional loans need at least 3%, and VA/USDA loans require 0%.
How long does it take to get a mortgage in Spokane?
The process typically takes 30-45 days, but it can be quicker if all paperwork is ready.
Are there first-time homebuyer programs in Spokane?
Yes! The Washington State Housing Finance Commission (WSHFC) offers assistance with down payments and lower interest rates.
What is the current mortgage interest rate in Spokane?
As of 2024, interest rates range between 6-7%, depending on your credit score and loan type.
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About Me
My name is Nick Briggs
Being born and raised in Spokane I grew up knowing what a special place this city is, and it was my dream to help others create a life in this wonderful community by guiding them in real estate. I spent many years in the customer service industry, the experience of listening and communication showed me how much I truly loved helping people. I attended Gonzaga University and earned a Bachelor’s Degree in Business Administration to add to my knowledge of guiding, managing, negotiating, and listening to individuals, helping them achieve their real estate goals.
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