If you are caught on the rental treadmill—constantly paying mortgage-like rents but unable to save enough for a big down payment—then we have a few ideas to help you jump off the treadmill and into a new home. Here are a few of our favorite programs:
Down payment assistance programs:
Home Advantage Down Payment Assistance Loan Program
This program offers a second mortgage with a zero percent interest rate to help cover the upfront costs of purchasing a home. The program is used in conjunction with the Home Advantage first mortgage, and all payments are deferred for 30 years. Eligible households may qualify for a maximum loan amount of up to 4 percent of the total loan amount in all counties.
Opportunity Down Payment Assistance Loan Program
ODPA Loan Program is a second mortgage with a 1 percent interest rate, with the payment deferred for 30 years. The loan amount can go up to $10,000, based on need.
HomeChoice
This offers qualified, first-time homebuyers who have a disability or have a family member with a disability a payment-deferred, second mortgage. This loan comes with a 1 percent interest rate and provides up to $15,000 to be used for down payment and closing costs. Payments are deferred for 30 years, or until the home is sold, or refinanced.
Washington State Housing Finance Commission (WSHFC)
Down payment assistance is available for homebuyers 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. Homebuyers interested in this program should take a Homebuyer Education class. We will also point you 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.
HomeSteps
This program offers homebuyers 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).
And there are more programs based on your location, income, professions, and more! Intrigued? Let’s find the right program for you.