Resources for Region 6

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:
Southwest Washington: Clark, Cowlitz, Klickitat, Lewis, Pacific, Skamania, Wahkiakum Counties

4. Research

Down Payment Assistance Programs

Local Resources:

Columbia Non-Profit Housing

• Where: Must have lived or worked in Clark County, or the City of Woodland for one year prior to closing
• Loan amount: Up to $45,000 or 20% of purchase price
• Loan Terms: The loan term is up to 30 years at 0% interest with no payments during the life of the loan.
• Income Limits: Must be at or below 80% of the area median (click the arrow to view the table)
• Purchase price limit: $225,000
• Must be a first time homebuyer
• Contact:  360.690.4496

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 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 $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 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

Housing Opportunities

Habitat for Humanity (Greater Lewis County, Willipa Harbor, Evergreen, Cowlitz County)
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 are far below market value. The home loan has no interest and has a 20-30 year loan term. Family gross income can be no higher than 50% of the area median income. For additional information contact Great Lewis County 360.736.7158, for Willipa Harbor 360. 875.6011, for Evergreen 360.737.1759, and for Cowlitz County 360.425.6177.

Lower Columbia Community Action Council Self-Help Housing Program
Buyers work with other families to build each other’s homes. No construction experience is necessary, as buyers will be trained to do the work. Families will be required to provide at least 30 hours per week of construction on homes. The average construction period is 9 – 12 months. Staff will help participants acquire a loan and work with them throughout the entire home buying process. There is no down payment and the monthly house payment is based on family income. Must have sufficient credit and ability to pay back the loan. For additional information contact 800.893.8311

Southwest Washington Community Land Trust

Southwest Washington Community Land Trust provides affordably priced homes for first-time homebuyers of modest means. We believe that homeownership is key to stability for working families and for the neighborhoods where they live. We also believe it is important to safeguard the affordability of homes for the future of the community, balancing the needs of individual homeowners with the needs of the community. We make home ownership affordable by taking land out of the purchase price and holding it in trust. Homebuyers purchase the house and lease the land from the land trust. A long-term land lease gives the homeowner secure and exclusive rights to use of the land beneath the home.

For more information contact:  swclt@comcast.net or davidjcarrier@yahoo.com

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 family’s income paying no more than 26% of their 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 additional information contact the USDA, Rural Development Brush Prairie Local Office: 360.696.7636, or the State Office: 360.704.7740.

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. Check www.wshfc.org or call WHC for current rate
• 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

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

2006 Median Income Limits

Click here to view income tables>>