Can You Switch Your Loan Type While House Hunting?

Can You Switch Your Loan Type While House Hunting? Yep—Here’s How One Buyer Did It

We had an interesting situation come up recently on one of my condo listings in Everett, and it turned into a great learning opportunity.

A buyer came to view the condo with an FHA preapproval—but here’s the catch: the condo isn’t FHA-approved (like many condos in our area). I figured that would be the end of the road… but nope. That’s when Sage, the managing broker I work with, had a creative solution.

The lender introduced the HomeReady mortgage by Fannie Mae—a conventional loan that only requires 3% down and is available to many first-time homebuyers. The buyer just needs to take a simple online course to qualify.

Yes—You Can Switch Loan Programs Mid-Search

Most buyers don’t realize you’re not locked into your initial loan approval. If you’re working with a flexible lender, you may be able to pivot to a different loan type that works better for the property you’re trying to buy.

In this case, switching from FHA to a conventional loan option made it possible for this buyer to stay in the game.

💡 Bonus: Down Payment Assistance Might Also Be Available

We also shared these additional Washington State programs with the buyer:

• HomeReady Mortgage Info

• WSHFC Down Payment Assistance Programs

• Home Advantage

• House Key Opportunity Program

Many of these programs offer low-interest deferred loans to help cover down payments—some up to $15,000.

Takeaway for Buyers:

If you’re out home shopping and hit a snag with financing, don’t give up—there may be options you haven’t considered yet. The right lender can make a big difference and having a team that understands how to navigate these programs can open doors (literally).

Want to explore your options? I’m happy to connect you with a lender and help you understand what programs might be a fit based on your goals.