South Sound Home Loans offers a full selection of Conventional, Veteran’s Administration Loan (VA), Federal Housing Administration (FHA), and US Department of Agriculture Single Family Home Loans (USDA) mortgages to purchase a home. Listed below is a summary of these programs:

Conventional Purchase Loans

Standard Purchase Loans: Requires 5% or more down with minimum middle credit scores of at least a 620. Terms from 10-30 years with fixed, semi-fixed, or adjustable rates available. Loan amounts up to $424,000. Mortgage insurance required if less than 20% down.

Special 1% and 3% down purchase programs available. Call for details. (Certain income and geographical limitations may apply).

High Balance Purchase Loans: available for loan amounts from $424,000 - $635,000 with same parameters above but at slightly higher rates.

Jumbo Purchase Loans: Loans over $635,000 up to $3 million available.

FHA Loans

Requires 3.5% down and maximum debt ratio of 43%. County loan limits apply.

($ 295,000 in Thurston County for 2017). No geographical limits. Payments will be higher due to FHA required upfront and monthly mortgage insurance. Loans available with scores as low as 580.

VA Loans

Features zero down purchases for qualified active and former military persons.

Requires VA Funding Fee which is added to loan amount (this can be waived if veteran has a disability rating).

Scores can be as low as 580. Standard VA loan available up to $424,000. Higher VA loan amounts available with minimum down payment requirements.

USDA Loans

Features zero down payment. Requires property to be outside urban cities/towns over 10,000 populations (refer to USDA web site for eligible areas).

Income limits by county (Thurston County is $88,400 for two-person family). Scores need to be at least 620. Debt ratios apply.

Other Loan Programs

Investment Loans available for 1 to 4 unit rental properties. Call for maximum number.

Limited manufactured home purchase loans available. Call for information.

First time homebuyer programs available. Call for information.


Refinancing your existing first (and second) mortgages to lower the interest rate and/or term, paying off debts, get cash for any reason, or any combination of the above depends on how much of a loan you need and the current value of your home (loan-to-value), your credit scores, and your current income and debts. Below is a summary of refinance loans we offer:

Cash-out refinances to consolidate first and second, pay off debts or to get cash will require a current appraisal. The following are loan limits for these types of loans:

Conventional Loans: 80% of current appraised value

VA Loans: 100% of current appraised value

FHA Loans: 85% of current appraised value

The best refinance rates depend on your credit scores and the Loan to Value needed. Generally, a middle score of at least a 660-680 will qualify for a good rate, scores over 740 the best rate, and we can do refinances with scores as low as 580, however these rates will be higher.

Reverse Mortgages

South Sound Home Loans offers Reverse Mortgages to seniors to pay-off an existing mortgage, take out cash for any reason, set-up a monthly payment plan as needed, or get a Line of Credit. Reverse mortgages can even help down-sizing seniors purchase a new home and not have payments. This is an FHA loan guaranteed by the government.

Key Features:

At least one borrower must be 62 years old.

Substantial equity required, even if borrower is 90, maximum reverse mortgage based on 75% of current appraised value. If only 52, maximum reverse mortgage is 59% of current appraised value. This means the borrowers always will have equity in their home and still own it.

Certain income requirements apply to ensure property taxes and hazard insurance premiums are paid. This may require funds from the reverse mortgage to be held in escrow.

Initial loan amount draw available will be limited to 60% of the reverse mortgage. (Exception is if current mortgage requires a higher amount which can be done at a higher fee and rate).

Reverse mortgage proceeds can be used to pay-off the existing mortgage, set-up a fixed monthly payment amount, set-up a Line of Credit to draw from which requires no payments, or any combination of the above.

Any Line of Credit balance grows at an annual rate of 3%.