Bremerton Mortgage Broker: Financing Older Homes, Condos, and Shipyard Careers

Many shipyard employees earn a meaningful part of their income from overtime, which is a common source of confusion in underwriting. The general approach under Fannie Mae, Freddie Mac, FHA, and VA guidelines:

• Base pay counts at the current rate.
• Overtime and shift differential typically need about two years of history. The lender averages it, often using year-to-date earnings plus the prior two years from W-2s.
• Declining overtime is averaged down, and a sharp drop may require an explanation from the employer.
• New hires and apprentices can sometimes qualify on base pay with an offer letter and a short employment history, depending on the program.

Bring your recent pay stubs and two years of W-2s, and expect the lender to verify employment directly. If your overtime is irregular, ask your loan officer to show you how they calculated it.

Bremerton's older homes have character, and they also have age. Common appraisal conditions on homes built before 1978 include chipping or peeling paint (a lead-based paint concern), missing handrails, roof wear, and crawlspace or moisture problems. FHA and VA set minimum property standards; conventional appraisals generally flag only issues affecting safety, soundness, or structural integrity.

Ways to handle it:

• Negotiate with the seller to complete repairs before closing.
• Escrow holdback for weather-related items, when the lender and program permit.
• A renovation loan that finances repairs as part of the mortgage.

A pre-offer inspection, or at least a careful walk-through with your agent, helps you anticipate what an appraiser may call out.

The FHA 203(k) program comes in two forms. The Limited 203(k) is for non-structural repairs and updates below a cost cap set by HUD. The Standard 203(k) handles larger projects, including structural work, and requires a HUD consultant. Fannie Mae and Freddie Mac offer conventional renovation options with their own rules. Details are on HUD's 203(k) page (opens in a new tab).

Renovation loans add paperwork: contractor bids, a draw schedule, and inspections before each payout. They take longer to close than a standard purchase. For a home that needs a new roof or updated kitchen, they can turn a property other buyers pass over into a workable purchase.

Downtown condos appeal to Seattle commuters who use the ferry. Before writing an offer:

• Ask the listing agent for the HOA's budget, reserve study, and insurance certificate.
• Check whether the project appears on the VA (opens in a new tab) or FHA approved condo lists if you plan to use those programs.
• Ask about pending special assessments and any lawsuits involving the association.

Projects that do not meet conventional guidelines are called "non-warrantable." Some portfolio and non-QM lenders will finance them, typically with larger down payments and higher rates. A broker can identify which lenders will look at a given project.

Bremerton has a supply of older duplexes and small multi-family buildings. Living in one unit while renting the others is a common way to build equity. Programs differ in down payment, how much projected rent they count, and reserve requirements. For VA-specific rules, see the Kitsap County VA loan guide. Expect the appraisal to include a rent survey, and budget for the more involved maintenance of an older multi-unit building.

A short call can identify which program fits your income and the homes you're looking at. Check current pricing on the live rates page, schedule a call, or apply securely (opens in a new tab). For broader context on the county, see our Kitsap County mortgage broker guide; if this is your first purchase, start with the first-time homebuyer guide.