Resources for Region 5

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:
Eastern Washington: Adams, Asotin, Columbia, Ferry, Garfield, Lincoln, Pend Oreille, Spokane, and Stevens Counties

4. Research

Down Payment Assistance Programs

Local Resources:

Community Action Center (Whitman County)
When funds are available, loans in amounts up to $20,000 are made to eligible households to assist in purchasing a home. Must be at or below 80% of Whitman County income (click the arrow to view the table)
For more information call 509-334-9147, or 1-800-482-3991

Spokane Neighborhood Action Programs (SNAP)
When funds are available, loans in amounts ranging from $5,000.00 to $15,000.00 are made to eligible households to assist in purchasing a home. Must be at or below 80% of Spokane County income (click the arrow to view the table) .
For more information call 509.456.7106 x122 or x 125


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 the arrow for income limits
• 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 866.600.6466 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 $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 1.866.600.6466 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 for income limits
• 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.
  
  

The Home$tart Savings Plan Eligibility
This is a saving matching program. You must establish a savings account with a listed financial institution and actively save money for at least six months. A home must be purchased within two years of enrolling in the program.

• Where: Statewide
• Grant amount: up to $5,000
• Interest rate: not applicable
• Income limits: at or below 80% of the median income (click the arrow to view the table)
• Must be a first-time homebuyer
• Must complete a homebuyer education course and qualify for a mortgage by the time the grant is awarded
• Contact: Visit www.fhlbsea.com for a list of participating lenders. Once on the web site click Community Investments, then click Our Programs, then click Home$tart. Each bank is allocated a certain amount of money each year, it may be necessary for you to contact more than one lender to find available funds.
  
  

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

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 the 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

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 website at www.hud.gov.

State Loan Programs:

Washington State Housing Finance Commission (WSHFC) House Key Program

• Interest rate: Below market
• Income Limits: Income limits vary by County and family size. Click the arrow for income limits
• 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 866.600.6466

Government/Nonprofit Loan programs:

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

Housing Opportunities

Community Frameworks

Families work together to build each other’s homes.  Buyers must dedicate at least 30 hours per week on construction until homes are complete.  This labor can serve as the buyer’s down payment and closing costs.  Staff will help buyers throughout the loan process.  Staff will also educate buyers on construction methods, financial preparedness, budgeting, home maintenance and repair, and more.  Income guidelines must also be met.  For additional Information contact Joanne at 509.484.6733

Habitat for Humanity (Colville Valley Partners, Daystar)
Habitat for Humanity is a non-profit organization that sells houses to low-income families. Families must provide 500 hours of sweat equity on their own home as well as other Habitat homes. The purchase price of Habitat houses is far below market value. The home loan has no interest and a 20-30 year term. Family gross income can be no higher than 50% of the area median income. For more information call Colville Valley Partners at 509.685.1516 and Daystar at 509.382.3145

RHS 502 Mutual Self-Help Housing Loan Program

• Income limits up to 80% of area median income (click the arrow to view the table)
• Families must be without adequate housing, but able to afford mortgage payments
• Loan term up to 38 years
• Interest rate is determined by buyer’s income paying no more than 26% of income for house principal, interest, taxes, and insurance
• No required down payment
• Family must perform 65% of construction labor on their own, or others’ homes
• For more information contact the USDA, Spokane Rural Development Office at 509.924.7350

2006 Median Income Limits