Resources for Region 2

Click below on the Step to Homeownership where you are right now and need information about.

Click here for a short description of the steps to Homeownership>

Local Homeownership Resources for:
Puget Sound: King, Island, San Juan, Skagit, Snohomish, and Whatcom Counties

4. Research

Down Payment Assistance Programs

Local Resources:

Washington State Housing Finance Commission (WSHFC)
House Key Plus Seattle

• Where: City of Seattle
• Loan amount: up to $60,000
• Interest rate: 3% simple interest
• Income limits: Click the arrow to see if you meet income guidelines
• Must be a first-time homebuyer
• Must take a Homebuyer Education Seminar
• Must be able to qualify for the House Key State Bond first mortgage loan program
• The seller of the property you intend to purchase must not displace a tenant in order for you to purchase the home.

Hope for Homes - City of Seattle

Hope for Homes is a program specifically designed for participants in the United Way Individual Development Account Program (www.uwkc.org).  IDA participants who plan to purchase a house may qualify for up to $45,000 in down payment assistance.  Please contact the Urban League or the International Housing Alliance for more information regarding the Hope for Homes program.  Urban League of Metropolitan Seattle 206.461.3697 or www. urbanleague.org.  International District Housing Alliance 206.623.5123 or www.apialliance.org.

Washington State Housing Finance Commission (WSHFC )House Key Plus ARCH

• Eligible cities: Beau Arts Village, Bellevue, Bothell, Clyde Hill, Hunts Point, Issaquah, Kenmore, Kirkland, Medina, Mercer Island, Newcastle, Redmond, Sammamish, Woodinville, Yarrow Point

• Loan amount: Up to $30,000

• Interest rate: 4% simple interest, no payments, due in 30 years or if borrower sells or refinances

• Maximum purchase price $335,800

• Borrower must contribute 2% of own funds.

• Must be used with a House Key first mortgage

• Income limits at 80% AMI (click the arrow to view the table)

• Contact: Visit www.wshfc.org or call WHC at 1.877.894.4663 for a list of participating lenders

City of Seattle / Teacher Homebuyer Program

• Where: City of Seattle
• Loan Amount: Up to $45,000. The 37-year loan does not require any payments until year 31.  Instead the $45,000 loan can be paid back when the home is sold.  If it is sold at year 30 or later, all interest is forgiven.
• Interest rate: 3% interest rate (forgiven if the homebuyer lives in the home for 30 years)
• Maximum purchase price: $312,895
• Income limits: Must be at or below 80% of county median income (click the arrow to view the table)
• Additional information: Must be certified teacher with Seattle Public Schools.
• Contact: For more information, call Cheryl Leidle at Evergreen MoneySource at 206.938.8900.

HomeSight Purchase Assistance

Through private and public partnerships, HomeSight provides purchase assistance to first-time homebuyers. Qualified homebuyers can receive up to $120,000 towards the purchase of a home in the form of low interest loans with small or deferred payments. Loan interest rates, terms, and amount may vary depending on income level and location of purchase.

To be eligible you must:

• Be a first-time homebuyer. Definition of a first-time homebuyer is someone who has not owned a home in the past three years. There are a few exceptions based on individual's circumstances so please contact HomeSight if you have questions
• Complete HomeSight's Education Curriculum and Financial Counseling.
• Deferred purchase assistance is available in target areas within Seattle City Limits, selected South King County municipalities, or within Snohomish County. Amortizing purchase assistance is available in all of Snohomish and King counties including Seattle
• All clients receiving purchase assistance through HomeSight, including all persons who will appear on the mortgage, must complete the educational curriculum
• You must first take the Fundamentals of HomeSight class prior to scheduling a One-on-One Financial Counseling appointment
• If you would like to register for classes in Seattle or South King County, please call 206.723.4355. Seattle classes are held in the city at various locations and South King County Classes are held at Highline Community College. For classes in Snohomish County, call Everett Community College at 425.267.0150. www.homesightwa.org

Homestead Community Land Trust (CLT)

Homestead CLT works in Seattle to provide and ensure homeownership opportunities for lower income through the land trust model. They currently have up to $91,000 (with no interest and deferred payment) in purchase assistance for homes in Seattle. See OwningaCLThome to learn more about the CLT model, contact Homestead at 206.323.1227 or visit www.homesteadclt.org

ParkView Services

Parkview's Homeownership Program offers home buying assistance in King County to individuals with developmental disabilities and family members who will live with them. There are two major components to Parkview’s program. The first is a homebuyer education and counseling component and the second is down payment assistance.

Program Eligibility

• Purchase a house or condominium unit in King County.
• Be an individual with a developmental disability or have a family member with a developmental disability that will live with you.
• Be able to qualify for a mortgage now or sometime in the near future.

Qualifying for the Down Payment Assistance

• Successfully complete Parkview Services’ individualized homebuyer education curriculum
• Successfully complete Parkview Services’ one-on-one pre-purchase budgeting and counseling curriculum.
• Have gross annual income from all sources that is less than 80% of the area median income. Some preference will be given to homebuyers who have income below 50% of the area median.
• Be a first time homebuyer (you have not owned a home within the last 3 years). There are some exceptions for displaced homemakers or if you purchase in a targeted area.
• Have at least $500 of your own money saved for a down payment. You might be required to have more depending on the particular down payment assistance that you use.
• The person with a developmental disability must have sufficient support services to ensure the health and safety of themselves and their home.

For more information email homeownership@parkviewservices.org, phone Marc Coté at 206.334.0731, or you may leave a message on the voicemail line at 206.529.4114.

Statewide Down Payment Assistance & Mortgage Assistance Programs

Washington State Housing Finance Commission (WSHFC) House Key Plus

• Where: Statewide
• Loan amount: up to $7,500 in Clark, Island, King, Pierce, and Snohomish Counties. Up to $5,000 for all other counties.
• Interest rate: 5%, 10-year loan term
• Income limits: To be eligible for a House Key Plus loan you must meet income guidelines. Click here to see if you meet the income guidelines. (click the arrow to view the table)
• Must be first-time homebuyer or purchase in a targeted area
• Must take a Homebuyer Education Seminar
• Additional information: Loan officer must be trained to administer House Key Plus
• Contact: Visit WHC 877.894.4663 or visit www.wshfc.org for a list of participating lenders

Washington State Housing Finance Commission (WSHFC) House Key Rural

• Where: Statewide
• Loan amount: 6% of purchase price or up to $10,000, whichever is greater
• Interest rate: 3% with no monthly payments until the borrower either (a) sells, refinances, transfers the property (b) fails to maintain as principal place of residence (c) when the home is paid off on or before 30 years
• Income Limits: Must be at or below 80% of area median income (click the arrow to view the table)
• Must be a first-time homebuyer
• Must have attended a First-Time Homebuyer Education Seminar
• Additional Information: Loan officer must be trained to administer House Key Rural
• Contact: WHC at 1.877.894.4663 for a list of participating lenders or visit www.wshfc.org

Washington State Housing Finance Commission (WSHFC) HomeChoice

• For those with a disability or living with a family member who has a disability
• Where: Statewide
• Loan amount: Up to $15,000 depending on need
• Interest rate: 1%, loan is deferred until year 30 or when home is refinanced or sold
• Income Limits: See House Key Plus guidelines (click the arrow to view the table)
• Must be a first-time homebuyer or buying in a targeted area
• Must first meet with a HomeChoice provider in your area to see if you are eligible
• Additional Information: Must be used in conjunction with House Key Conventional First Loan Program and loan officer must be House Key trained.
• Contact: Visit www.wshfc.org for a list of HomeChoice counselors in your area.

Down Payment Grant

Sammish Indian Nation

• Where: Statewide
• Grant amount: up to $20,000
• Interest rate: not applicable
• Income limits: Call for more information
• Does not need to be a first time homebuyer, but may not currently own a home
• Purchase Price Cap: Restrictions apply, depends on location and size of the home

Additional information: This program is available for Sammish Tribal members and other Natives.

Contact: For additional information and to learn if you are eligible, call 360.293.6404 ext.115, or email housing@sammishtribe.nsn.us

Seller Assisted Down Payment Programs
It is important to understand how seller assisted down payment programs work in order to decide if they are the best choice for you. Seller assisted down payment programs allow a seller to contribute money to a non-profit organization that in turn provides the homebuyer with down payment assistance. A portion of the contribution that the non-profit receives is used for administrative costs and to assist future homebuyers. Check to make sure the program is accepted by the lending institution you are working with.

Benefits:

• Buyers finance their down payment and are able to purchase a home that they may not have been able to otherwise.
• Most programs do not have income or location restrictions.
• Most programs do not require participants to be a first-time homebuyer or take a first-time homebuyer class.

Drawbacks:

• This is not a grant. The buyer is financing their down payment. The down payment is combined with the mortgage, therefore paid back over the life of the loan.
• Sales price of the home may be increased to finance the cost of the down payment.
• If the sales price of the home is increased, the home must appraise for the adjusted increased price, generally 3% to 5% more.
  

Why does a seller participate?

• The seller is able to market their home to a larger number of potential homebuyers.
• The seller receives a tax write off on the contribution to the non-profit organization
  Here are some common seller assisted down payment programs:
  · AmeriDream
  · Hart
  · Nehemiah
  · Neighborhood Gold
  · GIK

Affordable Housing Opportunities

Local Resources:

King County

Covenant Housing Association
Rehabilitated condominiums located in Seattle. A best fit buyer would be 60-80% of median income, a first time home buyer, have a history in the neighborhood and a letter of recommendation from church or demonstration of community involvement. Covenant looks for a best “fit” for the unit and families are given priority over individuals. For more information, call 206.722.2403.

Affordable Homes at NewHolly
New homes are available for first-time and qualifying low-income homebuyers. Qualifying buyers must have incomes below 80% of King County median income. Further restrictions apply. For more information visit www.othellostation.com

A Regional Coalition for Housing (ARCH)
Provides information on affordable housing on the Eastside. ARCH works with the City of Redmond, Bellevue and Kirkland to notify you of reduced-price condominiums and town homes in market-rate developments. For more information call 425.861.3677 or www.archhousing.org.

Habitat for Humanity
Habitat for Humanity is a non-profit organization that builds and sells houses to low-income families. The home loan has zero percent interest and is repaid over a period of 20-30 years. Participants' annual income must fall within 25-50% of the county median income. For more information and dates for orientations, contact the Habitat in your area: King County, 206.292.5240 or East King County 425.869-6007.

HomeSight

Davis Place: A room with a view of the Olympic Mountains and Downtown Seattle! This 34-Unit condominium development is located in Jackson Place neighborhood (in central Seattle) and is currently under construction. There will be 17 two-bedroom homes (780 sf.) and 17 one-bedroom homes (612 sf.), all with covered secure parking. Prices begin in the mid $160,000's (depending on views). Among the benefits are: proximity of transportation corridors, proximity to schools, restaurants, downtown Seattle, shopping, and parks, and much more! For more information call HomeSight 206.723.4355 or 1.888.749.HOME (4663) or visit www.homesightwa.org.

Homestead Community Land Trust (CLT)
Homestead CLT works in Seattle to provide and ensure homeownership opportunities for lower income through the land trust model. They currently have up to $91,000 (with no interest and deferred payment) in purchase assistance for homes in Seattle. See OwningaCLThome to learn more about the CLT model, contact Homestead at 206.323.1227 or visit www.homesteadclt.org

Habitat for Humanity Snohomish County
See description above. For more information call 425.258.6289.

Housing Hope Self Help Housing
Housing Hope is dedicated to promoting and providing a continuum of safe, decent, affordable housing and necessary services for very low and low-income residents of Snohomish County and Camano Island. Self Help Housing is a sweat equity homeownership opportunity funded by the USDA-Rural Development through which groups of households work together to construct their own new homes in rural communities under Housing Hope's supervision. Eligible applicants receive a low-interest loan (as low as 1%) with 0 down payment. Qualifying annual incomes range from a minimum of $25,000 up to 80% of area median income. For more information call 425-347-6556 or visit www.housinghope.org.

Xodus Housing

Xodus is a non-profit organization that offers affordable housing programs, financial assistance, education and counseling. They are partnered with regional and national industry leading organizations to provide the Equity First program. Xodus Housing lets its clients choose the home they wish to purchase and provides the financing and hands-on counseling to assist them in purchasing their new home. Through Equity First, Xodus Housing's clients are able to lock in today's competitive interest rates and assume the balance of the conventional mortgage. Xodus commits to a purchase price for each of its homes at the inception of the clients agreement thereby reducing the risk that appreciation rates will place the home outside of the client's buying limits. For more information call, 425.672.9098 or visit, www.xodushousing.org

Island, Skagit, San Juan, and Whatcom Counties

Kulshan Community Land Trust
Kulshan Community Land Trust is a non-profit organization working to provide affordable homeownership throughout Whatcom County for low to moderate-income households, using the community land trust approach. Kulshan currently has up to $62,000 in assistance. For more information call 360.671.5600 or visit www.kclt.org

Lopez Community Land Trust
Lopez Community Land Trust is a non-profit organization that provides permanently affordable housing for Lopez Island residents. LCLT utilizes a limited-equity co-op model in which clusters of homes are owned by a residents' co-op, which pays the mortgage and holds a ground lease on the LCLT-owned land. Mortgage payments will not exceed 33% of monthly income. Homes are available to those who are the greatest in need. For more information call 360.468.3723.

OPAL Community Land Trust
OPAL CLT is a non-profit organization that provides permanently affordable housing for residents of San Juan County with a primary focus on the Orcas Island community. Participants must have lived in San Juan County for at least 3 years. Participants must have good credit and debt to income ratio cannot exceed 38%. For more information call 360.376.3191.

Homes for Islanders

Self-Help Housing is a nonprofit organization that provides homeownership opportunities in Island County for those who are very low to moderate income.  Participants are required to contribute 35 hours a week in sweat equity. Participants must meet eligibility requirements of USDA/Rural Development and local banks.  For more information call 360.370.5944.

Whatcom-Skagit Housing Self-Help Homes
Whatcom - Skagit Housing is a non-profit agency that assists low income families build their own homes. Participants must contribute approximately 35 hours per week on construction for 9-11 months. Pre and Post homeowner education is provided. Participants need to meet Rural Developments income/debt ratios have assets less than $7,500 and have clean credit for a year. For more information call 360.398.0223, 888.360.0223 or visit their web site at: www.whatcomskagithousing.com

Lummi Island Community Land Trust is a non-profit that provides permanently affordable homeownership opportunities for Lummi Island residents (non-residents may apply). Our homeowners have income below 80% of Whatcom's median income, good credit and a debt to income ration below 38%. LICLT homeowners manage their shared land and facilities as a Cooperative. For more information call 360-758-9925.

Introduction to Loan Programs

Conventional Loans
Conventional loans are sold by lending institutions to the secondary mortgage market. Therefore, the qualifying guidelines may be more stringent. Almost all lenders provide conventional loan programs. Contact a lender to find one that best fits your situation.

Government Loans
Government loans insure lending institutions repayment of loans by the federal government in the event that a borrower defaults on the mortgage. In comparison to conventional and portfolio loans, lenders are insured by private mortgage insurance.

FHA Loan

• Income limits: none
• Loan amounts: Loan amounts vary by County. Click here for your county's loan limits.
• Down payment: 3%, may come from any source
• Debt to income ratios: total house payment up to 29% of monthly gross income, all debt, including housing, up to 41%
• Seller can contribute up to 6% of closing costs and costs may be rolled into loan
• Mortgage insurance is required
• Contact: Almost all lenders provide FHA loans. Contact your lender for information

VA Loan- for veterans

• Income limits: none
• Loan amount: maximum of conforming loan limits.  For loans over $144,000, VA will guarantee up to 25% of the home loan.
• Down payment: none
• Debt to income ratios – total debt including housing can be up to 41% of monthly gross income
• Seller may pay up to 3% of allowable closing costs
• Contact: Call 206.624.7000 or 800.827.1000 to confirm eligibility. Potential borrowers need Certificate of Eligibility or DD214 Discharge papers
  

USDA Rural Development - RHS 502 Direct Loan

• Income limits: up to 80% of area median income (click the arrow to view the table)
• Location: Must purchase in rural community with less than 10,000 population. Under certain conditions towns and cities with populations between 10,000-25,000 may be eligible.
• Loan amount: may be up to 102% of appraised market value
• Down Payment: not required
• Loan term: 33 years, under certain conditions, term may be extended to 38 years
• Families must be without adequate housing, but able to afford the mortgage payments
• Applicants must be unable to obtain credit elsewhere, but still have reasonable credit history
• For purchase of new or existing home, or for purchase of site and construction of home
• Contact: Click on the State Map for the area in which you are interested for local contact information

USDA Rural Development - RHS 502 Guarantee

• Income limits: up to 115% of area median income
• Location: Must purchase in rural community with less than 10,000 population. Under certain conditions towns and cities with populations between 10,000-25,000 may be eligible.
• Down payment: not required
• Loan Term: 30 years
• Families must be without adequate housing, but able to afford mortgage payments
• Applicants must be unable to obtain credit elsewhere, but still have reasonable credit history
• Contact: Click on the State Map for the area in which you are interested for local contact information

HUD 184 Indian Home Loan Guarantee Program

• Funds can be used to purchase and/or rehabilitate an existing home, or construct a home
• Must be an Alaskan or Native American, or a tribe, or a Tribally Designated Housing Entity to participate in program
• Down payment as low as 1.25%
• Long term fixed rate financing with loan to value ratios as high as 150%
• Nontraditional methods may be used to demonstrate borrower’s credit and income
• No income limits
• Debt to income ratio can be as high as 41%
• Loan term up to 30 years fully amortized
• For more information call 1.877.741.3281

King County Department of Community and Human Services

King County Housing Repair Programs provide 0% interest loans, and grants, to help County residents keep their properties in good repair. Homeowners can make improvements needed to keep their homes safe, energy efficient, and comfortable. Landlords can receive free financing to make rental units accessible for handicapped tenants. The purpose of the programs is to benefit low and moderate income homeowners, help preserve existing housing throughout King County and keep our neighborhoods livable. All of the programs are for properties outside Seattle.

Deferred Loan Loan limit:

• Up to $20,000 at 0% interest
• Income limits:  80% and below of AMI
• No payments until home is sold or title is transferred

Matching Loan

• Loan limit: Up to $20,000 at 0% interest  - total for work can be up to $40,000
• Income limits:  80% and below of AMI
• No payments until home is sold or title is transferred
•  For more information call 206.296.7640 or check www.metrokc.gov/dchs.cds/housing

Purchasing a HUD Home:
If you are interested in purchasing a foreclosed home through the Federal Government Department of Housing and Urban Development (HUD), you must go to the web site at www.hud.gov.

Statewide Loan Programs:

Washington State Housing Finance Commission (WSHFC) House Key Program

• Interest rate: Below market. Check www.wshfc.org or call WHC for current rate
• Income Limits: Income limits vary by County and family size. (click the arrow to view the table)
• Must be a first-time homebuyer or purchasing in a targeted area
• Must complete a First-Time Homebuyer Education class
• Must first qualify for a loan according to FHA, VA, RHS, or Conventional loan standards and loan officer must be trained to administer House Key Program
• Contact: A House Key Program lender. For a list of participating House Key Program lenders visit www.wshfc.org or call WHC

ACORN Housing

ACORN Housing is a a nonprofit HUD certified housing counseling agency that provides home buying assistance. The features of their program are:

• Conventional, portfolio loan
• 30 year fixed rate
• Interest rates 0.75% below market
• 0% down - borrower's contribution $500
• Down payment and closing cost assistance
• No PMI (private mortgage insurance)
• Undocumented income up to $1,200/month
• Liberal ratios permitted for debts & housing
• Common-sense underwriting & flexible rules

For additional information, call 206.243-4663 or visit www.acornhousing.org

Washington Assistive Technology Foundation

The Washington Assistive Technology Foundation (WATF) is a 501(c)(3) nonprofit and Community Development Financial Institution (CDFI) dedicated to improving the socio-economic circumstances of people with disabilities through access to technology. The WATF Access Fund provides low-interest loans to help Washington residents with disabilities obtain the technologies and business equipment they need to live independently and to succeed at school, at work, at play and in the community.

• Loan limit: $250-$10,000
• Interest rates: determined by agency
• Income limits: no upper or lower limits
• Contact: 206-328-5116 or info@watf.org

The City of Seattle and HomeStreet Bank sponsor three employee home purchasing options.  Homes must be owner occupied within the Seattle City limits.

The Hometown Loan Program

For: employees of participating Affinity Partners including: UW, City of Seattle, AFL-CIO affiliated union members, and teachers.
For a completed list visit www.homestreet.com/hthl
Income limits: None
Not restricted to first time homebuyers
Typical savings of $1,000 or more on closing costs
Contact: HomeStreet Bank Affinity Lending at 206.628.0207 or visit www.homestreet.com/hthl

Location Efficient Mortgage

For: Those with one household member employed within Seattle City limits and purchasing within Seattle city limits
Loan amount: Up to $300,700
Down payment: 3% down payment must be from borrowers funds
Income limits: none
Need not be a 1st time homebuyer
Homebuyer education class required
Additional information: Earn additional qualifying income based on neighborhood amenities. Additional incentives from Metro, Flexcar and Gregg's Cycle. •
Contact: HomeStreet Bank at 800.719.8080 or visit www.cityofseattle.net/housing/LEM

2006 Median Income Limits

Click here to view income tables>>