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Island County, Washington FHA, VA, and USDA Loan Information

Table of Contents

-How to purchase a home in Island County
-What are the government loan limits in Island County, WA?
-What parts of Island County are eligible for USDA loans?
-Do I need flood insurance?
-How do I learn about Property Taxes in Island County
-What is the median home price in Island County, WA?
-How many people live in Island County?
-What are the major cities?
-How do I see FHA- and VA-Approved homes for sale?
-Is there a cost to have a real estate agent represent me?
-What closing costs do I need?
-How can I get assistance with closing costs?
-About Island County
-How much of a loan can I qualify for, based on my income?
-Approved Condominium Projects in Island County

How to purchase a home in Island County

Are you interested in buying a home in Island County? This is a step by step guide to all the ins and outs of the homebuying process. For more detail about FHA loans, be sure to check out our complete guide. We also have an in-depth guide to VA loans and the USDA’s Rural Development home loan program.
For now, let’s look at the basic steps to buying a home – and what you’ll have to look out for in Island County.

  1. Get in touch with a loan officer – give us a call at 877-432-5626 We can help you figure out what type of loan you might qualify for. Programs through the VA, USDA, and FHA allow you to buy a home with a small down payment – or no down payment at all. We will also check your credit and income to see how much of a loan you can qualify for. When we do this, we do a “soft pull” on your credit. This is different from an official credit inquiry and won’t hurt your credit score.
  2. Compare loan offers. Either call us or fill out the form by filling up the form at the top right of this page.
  3. Give your Loan Officer the information they need to find you a loan For a purchase loan or cash-out refinances:
    • Your ID
    • Previous two years of W2s
    • Most recent 30 days paystubs
    • Most recent 60 days bank statements
    • Landlord and HR/Payroll Department contact info
      For a refinance loan, you will also need information on the loan you want to refinance.
  4. Contact our Loan officers to compare the interest rates and APRS – but keep in mind that the fixed- and adjustable-rate mortgages are apples and oranges. Use the Loan Estimate to compare the true costs of each loan, both month-to-month and over the life of the mortgage.
  5. Find a home Get connected with a FedHome Loan Centers Real Estate Agent. Once you meet with them to talk about your wants and needs, you can sign up for the property search feed. This will give you alerts about homes for sale in Island County. Now you’re ready to preview properties and start touring homes.
  6. Make an offer and negotiate the terms of the sale
  7. Get the necessary and recommended inspections Required Inspections:
    • Termite Inspection
    • Well or septic inspections, if applicable
    • We can help you check if your home is in one of the Island County flood hazard areas.
      Recommended Inspections:
      Home Inspection, Roof Inspection, Sewer Inspection
  8. Get the home appraised Construction loans require a construction appraisal and permit approval
  9. Lock in your interest rate Pro Tip: Wait until the appraisal to lock in your loan rates. If it turns out you need to make repairs, it can push the closing back. Then you run the risk of losing that rate or having to pay an extension fee.
  10. Close the deal and get packing! You’re ready to go!


What are the Loan Limits for Island County?

  • FHA Loan Limit $393,300 (Single family residence) / $503,500 (Duplex) / $608,600 (Triplex) / $756,350 (Fourplex)
  • USDA Loan Limit $334,300
  • VA Home Loan Limit $0 down up to $3,000,000 / 2 open VA loans at one time $510,400 *(Call 877-432-5626 for details).

What Parts of Island County are eligible for USDA Loans?

  • Island County is eligible for a USDA Rural Development home loan.
  • Eligible Zip Code: 98236, 98239, 98249, 98253, 98260, 98277, 98282.

Do I need Flood Insurance?

  • The FHA, USDA, and VA all require flood insurance in Special Flood Hazard Areas.
  • Island county, sees flooding along the coast with the northern part of Livingston Bay being one of the more prone flood hazard areas. The rest of the flood hazard areas are along the coast, which, as an island, is all around it.

How do I learn about Property Taxes in Island County?

  • Mary Engle is the Island county tax assessor. Her office is at the Administration building NE 7th Street, Room 208 Coupeville, Washington 98239, and her office phone number is (360) 679-7303.
  • Washington state offers about 50 tax incentives and deductions meant to bolster local business growth. Also, there are several tax credits programs for specific industries that meet individual requirements. Furthermore, deferral programs are also available for manufacturers, high technology businesses, and fruit & vegetable businesses.

What is the Median Home Price in Island County?

Currently, the median property value for Island County is $311,400. Also, the median household income for residents of the county is $64,809, which is higher than the national average.

How many people live in Island County?

As of 2019, Island County’s population is 85,141, which includes about 12,382 veterans and has seen an increase of 8& in the last decade. Demographically speaking, 78% of the population is White, with 8% Hispanic, and 5% Asian.

What are the major cities?

The county has two cities and one town, including the town of Coupeville, which serves as the county seat. The two cities in the county are Langley and Oak Harbor.

How do I see FHA- and VA-Approved homes for sale?

You can view all of the properties available for sale in Island County through our Multiple Listing Service. In addition, you can see approved condos at the bottom of this page.

Is there a cost to have a real estate agent represent me?

The seller must pay the real estate professionals’ commission, not the buyer. This means that, as a homebuyer, there is no cost to have a real estate agent represent you. In fact, it’s a good idea to get your own agent in order to have someone in your corner during the negotiation process. For more information about real estate agents, click here.

What closing costs do I need?

For FHA loans, closing costs can end up being 3-4% of the loan amount. These costs include origination fees from the lender, any discount points purchased for a better interest rate, and pre-paid items like insurance and taxes.

How can I get assistance with closing costs?

There are several ways to reduce the amount you have to pay at closing. One way is to get down payment assistance. The FHA’s Within Reach program provides grants to help low- and middle-income families with their down payment.

About Island County

Consisting of two islands, Whidbey and Camano, Island County was established on January 6, 1853, by the Oregon Territorial Legislature. The islands were home to the Swinomish, Suquamish, Snohomish, and Lower Skagit tribes which spread throughout Washington for thousands of years before European arrival. The first white settler was Isaac N. Ebey and settled a large part of the prairie in the southern shoreline.

Today, the county enjoys a growing economy, with the largest employment industries being Health care, Manufacturing, and Retail trade. Therefore, the most common occupations are in the Office Administrative, Management, and Sales occupations. However, the biggest employer in the county is the U.S. Naval Air Station on Whidbey Island. 

When it comes to education, the county has three school districts, Oak Harbor, Coupeville, and South Whidbey. All three school districts provide education from pre-K to 12th grade. With a total of about 8,376 students per year, the county is above average due to its student’s test scores.

The county is full of recreational activities with its many parks like in Cranberry Lake Campground, Dugualla State Park, Fort Ebey State Park, and Fort Casey Park, among many others. The many parks located all over the county offer opportunities to take part in various activities, including hiking, swimming, and camping.

Additionally, Island County is also host to several annual events and celebrations like the Whidbey Island Marathon, and the Oak Harbor 4th of July Fireworks, Fair, and Parade. The county is also host to the Island Shakespeare Festival and the Coupeville Arts and Crafts Festival. Both of which celebrate local artists and their work.      

How much of a loan can I qualify for, based on my income?

Monthly Income Purchase Price
$2,628.90 $195,175.91
$2,832.00 $210,254.55
$3,181.50 $236,202.27
$3,612.00 $268,163.64
$3,985.50 $295,893.18
$4,361.10 $323,778.64
$4,971.90 $369,125.91
$5,761.50 $427,747.73
$6,892.20 $520,625.00
$5,199.60 $368,791.82
$5,743.80 $408,815.91
$6,249.90 $450,287.73
$6,998.10 $501,960.45
$9,776.70 $725,845.91
$5,568.00 $413,381.82
$6,574.80 $488,129.09
$7,569.60 $561,985.45
$5,141.40 $381,710.00
$6,345.30 $471,090.45
$7,639.80 $567,197.27
$8,360.10 $620,674.09
$9,260.70 $687,536.82
$10,095.30 $749,499.55
$12,165.00 $903,159.09
$13,929.60 $1,034,167.27
$17,511.00 $1,300,059.09
$18,406.80 $1,366,506.06

Purchase Price subject to credit and income evaluation. 

Approved Condos in Island County

Condo ID /
of Project
ISLANDDELRAPThere are two buildings with 12 units each. The two addresses are 1621 and 1651 SW Mulberry Place, bldgs D and E.ExistsRecorded/

Discover The Perfect Home in Island County

FedHome Loan Centers can help find and finance your dream home or condo in Island County. Contact us today for more information. 

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