By Tom Earnest | Real Estate Broker / Realtor
John L. Scott Real Estate
Kitsap County remains a bustling market in mid-2025, with the median sale price near $600,000 and homes selling within 11–30 days. Buyers—especially first-timers—need strategic planning anchored in finance, market knowledge, and lender partnerships. Here are ten actionable tips to guide your dream-home journey.
1. Build a Financial Foundation
Start by improving your credit score, reducing debt, and saving for down payments and closing costs. Lenders scrutinize these factors to qualify you for favorable rates.
2. Explore Financing Options by Property Type
- Single-family homes: Most buyers use conventional, FHA, VA, or USDA loans. Lenders often require 3–5% down (FHA) or 0% (VA), with competitive rates.
- Manufactured homes:
- If affixed to owned land, you may use conventional real-estate loans—best rates, full protections.
- If in a rented park or titled as personal property, you are limited to chattel loans, which carry higher rates (8–14%) and shorter terms.
- FHA Title I or Title II loans are alternatives for HUD-built homes on owned land or in parks.
- Multi-family homes: Consider Fannie Mae’s 2–4-unit owner-occupant mortgages or commercial loans if investment-focused. These require larger down payments (~15–25%) and stronger credit.
- Vacant land: Financing can be tricky. Options include land loans or construction loans (convertible to mortgages after building). These demand 20–25% down, higher interest rates, and stricter credit checks.
3. Get Pre-Qualified and Pre-Approved!
Begin with a pre-qualification from lenders or brokers to understand your budget. Then pursue pre-approval – a written loan commitment that strengthens your offer and speeds up purchase timelines.
4. Shop Lenders by Specialization
Select lenders who specialize in your target property:
- Manufactured-home lenders like Sound Community Bank or Capital Home Mortgage offer tailored FHA and chattel programs.
- Conventional lenders (banks, credit unions) are best for single-family or multi-unit homes.
- For land or construction lending, work with lenders experienced in land/construction-to-perm loans.
5. Comparing Rates, Fees, and Closing Costs
Do not just look at interest rates—ask lenders for full Loan Estimate forms to compare:
- Interest rate
- Origination and appraisal fees
- Title, survey, and closing costs.
- For manufactured homes: compare between FHA, conventional, and chattel options to find the best total cost.
6. Understand the Chattel Loan Caveat
A manufactured home without owned land is personal property—not real estate—and may disqualify you from FHA, VA, or USDA loans. A chattel loan is costlier and riskier. Always aim to buy land with the home whenever possible.
7. Budget for All Costs
Plan beyond monthly mortgage payments:
- Property tax, insurance, HOA fees, utilities
- Maintenance, especially in multi-unit properties
- Site preparation and infrastructure for vacant land
8. Partner with a Local Real-Estate Agent
An experienced Kitsap County agent:
- Knows local lenders familiar with unique loan types.
- Helps compare offers beyond interest rates (e.g., closing timeline, contingencies)
- Coordinates financing smoothly with inspections, appraisals, and timelines.
9. Act Quickly in Competitive Markets
With ~40% of homes selling at or above asking, and most under 30 days speed and preparedness matter. Having pre-approval and lender-selected ensures you are ready to close fast.
10. Revisit and Reevaluate Offers
If your first offer is not accepted, do not be discouraged. A trusted lender can help improve your offer through stronger earnest money, fewer contingencies, or minor interest rate adjustments.
Bottom Line
First-time buyers in Kitsap County can confidently navigate the market—with a financial foundation, informed lender selection, and strategic preparation tailored to your property type. Whether you are buying a mobile home, single-family house, multi-unit, or vacant land, aligning with the right lender—and loan—can turn your dream into reality in Kitsap’s evolving 2025 landscape.
Leave a Reply