There are a number of down payment and financial assistance programs available to home buyers in our area who meet the qualifications. There are parameters for each that need to be followed, but here is an overview of some key programs:
Veterans Administration Loan
This is a loan which is backed by the Veterans Administration. Because it is insured, banks are willing to offer great terms to Veterans and their families. Low down payment and no mortgage insurance are two very attractive features of this type of loan.
Federal Housing Administration Loan (FHA)
The three benefits of this loan are the low down payment, lower credit score requirements, and additional monies to fix the home up can be included in the loan amount. Buyers who want to take advantage of an FHA loan first need to find an FHA-approved lender. I have a full list of our local FHA-approved lenders in the event these loan parameters sound like a good match for your needs. The drawback to an FHA loan? Government mortgage insurance is an additional expense you will need to cover.
Washington State Housing Finance Commission (WSHFC)
Down payment assistance is available for home buyers who use their loan programs – Home Advantage or Opportunity. Household income needs to be under the limits (currently set at $145,000). Minimum credit score is 620. Down payment assistance via a low interest loan is usually in the $10,000 range which is wrapped in with your mortgage. Home buyers interested in this program should take a Home Buyer Education class (here is a link) and work with a trained lender (here is a link to a list). I will also help get you pointed in the right direction.
House Key Schools
This program is available for educators and school employees via the Washington Housing Association. It offers up to a $10,000 loan for down payment assistance.
This program offers home buyers an opportunity to purchase homes on the HomeSteps program. Only owner occupants purchasing as a primary residence and buyers using public funds can purchase property during the First Look Marketing Period (corresponds to the first 20 days in all states except Nevada, which has a 30 day Marketing period).
These are just some of the highlights. There are additional loan programs available for a number of factors – particular target area, professions, or more! Home ownership doesn’t just benefit you – it benefits the community, and our community is making an investment in building stronger.