Unlocking Homeownership: Downpayment Programs and Affordable First Mortgages for Washington Homebuyers
The dream of homeownership can often be overshadowed by the financial complexities surrounding it. Fortunately, for those in Washington State, there are various programs and initiatives designed to make the home buying journey smoother and more affordable. This article delves into numerous down payment programs and affordable first mortgage resources to help potential homeowners in the region.
Exploring Washington's Different Homebuying Programs
Washington State, along with its various counties, recognizes the value of homeownership and its role in community building. As such, there's an abundance of programs tailored to assist homebuyers, whether you're a first-timer or returning to the market. From down payment assistance to favorable loan terms, there are myriad resources to ensure residents of our great state have the support they need to achieve their homeownership dreams.
get a clearer picture of which programs you might qualify for
The downpayment programs mentioned below represent just a selection of the available options. To view a comprehensive list of all potential programs and determine your eligibility, please use the "Program Eligibility" button.
Washington State Housing Finance Commission (WSHFC) - Opportunity Down Payment Assistance Program Overview
Maximum Amount: $15,000
Eligible Properties Maximum Sales Price: The maximum sales price for properties under this program is $500,000.
Geographic Eligibility: This program is available statewide in Washington.
Ownership Status: To qualify, you must be a first-time homebuyer.
Income Limitations: The maximum annual household income, based on household size, is $80,750 for a household size of 1-2, and $100,900 for a household size ranging from 3-8.
Home Buyer Education: Prospective homebuyers are required to complete a homebuyer education course.
Maximum Assets: Borrowers are permitted to retain the greater amount between six months of PITI (Principal, Interest, Taxes, and Insurance) or $10,000 in liquid reserves.
Home Buyer Obligations:
The property must be used as the borrower's primary residence.
It's essential to secure pre-approval for the first mortgage with a participating lender.
Credit Score Requirements: These are based on GSE (Government-Sponsored Enterprise) guidelines.
Program Limitations:
Income limits specific to the Opportunity DPA Program apply.
Buydowns are not allowed under this program.
All borrowers are mandated to attend a Commission-sponsored homebuyer seminar before they can reserve funds.
Lenders have the responsibility to determine the borrower's need by utilizing the Needs Assessment Form, except if the borrower is a Veteran.
Washington State Housing Finance Commission (WSHFC) - Home Advantage DPA Overview
Maximum Amount: 5% of Total Loan Amount
Eligible Properties Maximum Sales Price: The program does not specify a maximum sales price for properties.
Geographic Eligibility: This program is available across the entire state of Washington.
Ownership Status: Unlike many programs, the Home Advantage DPA allows for current ownership.
Income Limitations: For households ranging in size from 1 to 8 members, the maximum allowable annual household income is $180,000.
Min Buyer's Contribution: There's no specified minimum contribution required from the buyer.
Home Buyer Education: Prospective homebuyers need to complete a mandatory homebuyer education course.
Home Buyer Obligations:
It's essential for buyers to occupy the property as their primary residence.
A pre-approval for the first mortgage with a participating lender is a prerequisite.
Credit Score Requirements: These are determined based on GSE (Government-Sponsored Enterprise) guidelines.
Program Limitations:
When using the Freddie Mac HFA Advantage, up to 4% Down Payment Assistance (DPA) is available if the income surpasses 80% of the Area Median Income (AMI).
Lenders bear the responsibility for ensuring the stipulated income guidelines have been adhered to. The coverage area reflects the higher income limits.
Washington State Housing Finance Commission (WSHFC) - Home Advantage Overview
Maximum Amount: N/A
Eligible Properties Maximum Sales Price: The program does not specify a particular maximum sales price for eligible properties.
Geographic Eligibility: This program is available statewide within the jurisdiction of Washington.
Eligibility Criteria:
Ownership Status: Current homeownership is allowed under this scheme.
Income Threshold: Regardless of the household size (from 1 to 8 members), the maximum annual household income is capped at $180,000.
Minimum Buyer's Contribution: There's no minimum contribution specified for buyers.
Home Buyer Education: Compulsory educational sessions are required for participants.
Home Buyer Obligations:
It's imperative that beneficiaries use the property as their primary residence.
Moreover, securing a pre-approval for the 1st mortgage through an affiliated lender is a must.
Credit Score Guidelines: The program's credit requirements are rooted in GSE guidelines.
Restrictions and Specifications:
Manual Underwriting with VA and Freddie Mac HFA Advantage is not permissible.
The program's DPA funds are not to be utilized for covering buydown fees or costs.
Approved property types encompass a 1-Unit Single Family Residence which includes condos, townhomes, and PUDs. For Fannie Mae HFA Preferred Conventional and Freddie Mac, the maximum LTV is 95% for manufactured homes. However, these homes are not approved with non-traditional credit and FHA financing.
Borrowers working with Fannie Mae & Freddie Mac and who have incomes surpassing 80% AMI will be governed by the Standard MI Coverage. Conversely, those with incomes that are less than or equal to 80% AMI will be under the Charter (Reduced) MI Coverage.
Refunds to borrowers in cash are prohibited.
The onus of confirming adherence to income limits based on the 80% AMI criteria lies with the lenders. The Coverage Area limits are fixed for those with more than 80% AMI.
With the HFA Advantage program, Freddie Mac upholds its stand on not allowing loan limits to surpass, even in high-priced zones.
For more comprehensive information and details, interested parties are encouraged to visit the WSHFC program's official website.
CBC Mortgage Chenoa Fund - FHA Forgivable DPA Overview
Maximum Amount: 5% of Total Loan Amount
Eligible Properties Maximum Sales Price: The program does not set forth a specific maximum sales price.
Geographic Eligibility: This program is available across the nation, with the exception of New York.
Ownership Status: The FHA Forgivable DPA allows for current homeownership, indicating flexibility for potential beneficiaries.
Income Limitations: Specific details regarding income limits based on household size are not provided.
Min Buyer's Contribution: Beneficiaries of this program are not required to make a minimum contribution.
Home Buyer Education: It's mandatory for prospective homeowners to undergo and complete a homebuyer education course.
Home Buyer Obligations:
At least one borrower must designate the property as their primary residence.
A mandatory pre-approval for the primary mortgage with a participating lender is needed.
Credit Score Requirements:
A minimum credit score of 600 is a prerequisite.
Every borrower needs to have a credit score.
For those with credit scores up to 659, the payment shock shouldn't exceed 150%.
Borrowers boasting credit scores of 660 and above can have a payment shock up to 175%.
Chenoa Fund Down Payment Assistance Program Overview
Maximum Amount: 5% of Total Loan Amount
Eligible Properties Maximum Sales Price: The Chenoa Fund does not specify a particular maximum sales price for eligible properties.
Geographic Eligibility: This program is accessible to potential homeowners across the United States, with the exception of New York State.
Ownership Status: The Chenoa Fund is accommodating to those who currently own properties, offering flexibility for various applicants.
Income Limitations: The program doesn't provide explicit information regarding the maximum annual household income based on household size.
Min Buyer's Contribution: Homebuyers are not obligated to make a minimum contribution when opting for this program.
Home Buyer Education: Completion of a homebuyer education course is a prerequisite for potential homeowners aiming to benefit from this program.
Home Buyer Obligations:
The property acquired through this program must be used as the primary residence of the buyer.
It's essential for applicants to secure pre-approval for their primary mortgage from a lender that participates in the program.
Credit Score Requirements:
The Chenoa Fund mandates a minimum credit score of 600 for eligibility.
Every applicant should have at least one credit score to their name.
For applicants with credit scores up to 659, the payment shock must not surpass 150%.
Conversely, those with credit scores starting from 660 can have a payment shock reaching up to 175%.
For a deeper understanding and any additional information concerning the Chenoa Fund Down Payment Assistance Program, interested parties are encouraged to visit the program's official website.
Federal Home Loan Bank (FHLB) of Des Moines - Native American Homeowner Initiative (NAHI) Program Overview
Maximum Amount: $15,000
Eligible Properties Maximum Sales Price: The NAHI program sets the maximum sales price for eligible properties at $675,000.
Geographic Eligibility: This program is available in states covered by the FHLBank Des Moines footprint. Specifically, these states are: AK, HI, IA, ID, MN, MO, MT, ND, OR, SD, UT, WA, and WY.
Ownership Status: The NAHI program specifically caters to first-time homebuyers.
Income Limitations:
For a single individual: $70,650
For a duo: $80,750
For a trio: $90,850
For a family of four: $100,900
For five members: $109,000
For six members: $117,050
For a family of seven: $125,150
For eight members: $133,200
Min Buyer's Contribution: The program does not necessitate any minimum contribution from the homebuyer.
Home Buyer Education: As a mandate, all potential beneficiaries of this program must undergo homebuyer education.
Home Buyer Obligations:
Applicants should belong to the Low to Moderate Income category. For specific income guidelines, refer to the official website.
It's imperative for the property to be occupied by the homebuyer as their primary residence.
Credit Score Requirements: Credit score standards are contingent upon the guidelines of the first mortgage.
Limitations:
A 5-year deed restriction is imposed on properties acquired through this program.
Importantly, the FHLB of Des Moines will only entertain NAHI program applications, reservations of funds requests, and disbursement requests from its existing members.
Loan Terms:
The product offered by this program is in the form of a grant.
For a comprehensive understanding and to glean additional details about the Federal Home Loan Bank (FHLB) of Des Moines - Native American Homeowner Initiative (NAHI) Program, interested individuals are advised to visit the program's official website.
HOMESIGHT Puget Sound Revolving Loan Program - King and Snohomish Counties Overview
Maximum Amount: $70,000
Eligible Properties Maximum Sales Price: The program does not specify a maximum sales price for eligible properties.
Geographic Eligibility: The program is applicable for properties purchased within participating municipalities in either King or Snohomish Counties in Washington State.
Ownership Status: The HOMESIGHT Puget Sound Revolving Loan Program specifically targets first-time homebuyers.
Income Limitations:
For an individual: $115,000
For two persons: $131,550
For a trio: $148,000
For a family of four: $164,400
Min Buyer's Contribution: Though not clearly specified, the program has a limitation indicating that the minimum buyer's contribution should be $2,500 or 1% of the purchase price, whichever amount is greater. Some of these funds can also be sourced as gifts.
Home Buyer Education: The program mandates that potential beneficiaries undergo homebuyer education.
Home Buyer Obligations:
Buyers are required to make the purchased property their primary residence.
There are associated fees which amount to either $200 or 2% of the assistance amount, with the higher amount being applicable.
Limitations:
As previously stated, buyers are required to contribute a minimum amount either based on a flat rate or a percentage of the purchase price.
Furthermore, properties acquired through this program must successfully pass an inspection carried out by a State Licensed Inspector.
For in-depth insights and further details about the HOMESIGHT Puget Sound Revolving Loan Program available for King and Snohomish Counties, interested individuals are encouraged to visit the program's official website.
HOMESIGHT Sam Smith "Hi Neighbor" Homeownership Fund Overview
Maximum Amount: $12,000
Eligible Properties Maximum Sales Price: The program does not state a specific maximum sales price for eligible properties.
Geographic Eligibility: Properties under this program must be located within the state of Washington.
Ownership Status: This particular fund caters exclusively to first-time homebuyers.
Income Limitations:
Single individual: $115,100
Duo: $131,500
Trio: $147,950
Family of four: $164,400
Family of five: $177,550
Family of six: $190,700
Family of seven: $203,850
Family of eight: $217,000
Min Buyer's Contribution: The program does not specify a clear minimum buyer's contribution.
Home Buyer Education: A necessary component of this program is the homebuyer education that all applicants must undergo.
Home Buyer Obligations:
As with many such programs, beneficiaries are expected to occupy the acquired property as their primary residence.
Additionally, it's a requisite that buyers obtain their first mortgage financing through Homesight.
For a comprehensive understanding and further specifics about the HOMESIGHT Sam Smith "Hi Neighbor" Homeownership Fund, prospective homebuyers are recommended to visit the program's official website.
Why Utilize These Programs?
Washington State recognizes the challenges potential homeowners face, particularly with the financial aspects of the purchase. These programs are curated to make the dream of homeownership more attainable. Whether it's assistance with down payments or ensuring that the first mortgage isn't a financial burden, these programs have been established to support and guide homebuyers.
Concluding Thoughts
Owning a home is a significant milestone, and understanding the available financial resources can transform this dream into reality. We recommend that all potential homebuyers research these programs thoroughly, consulting with a real estate professional for insights and guidance.
Should you have any queries or need further assistance in navigating these resources, don't hesitate to reach out to us. We are committed to guiding you every step of the way in your homeownership journey.
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