Buying a home for the first time represents a dramatic shift from existing in the world of rentals in ways that are both exhilarating and frightening. To help you get ready to purchase a place to call your own, raise a family, and live your life, consider taking advantage of one of these loan assistance and educational programs available to first-time home buyers moving to the city of Seattle or other great locales in the state of Washington.
The Home Advantage Program
The largest state-based incentive to encourage and enable first-time home buyers is the Home Advantage first mortgage loan program from the Washington State Housing Finance Commission (WSHFC). This financial aid is available for first-time home buyers who do not exceed the household income maximums. The statewide level is set to $97,000 annually, but this amount can vary based on the specific type of loan and the possibility of limit exceptions. If your annual household income is hovering around the statewide maximum, you should still investigate if there is a chance that you can qualify.
Applying for the Home Advantage Program
Qualifying and applying for the Home Advantage program is broken down into three steps: attending an educational seminar, working with a loan officer to find the specific type of loan that best meets your eligibility and needs, and going through the process of selecting a home and finalizing its purchase.
Educational Seminar
The WSHFC sponsors educational seminars throughout the state that are a prerequisite to receiving a Home Advantage loan. To find a seminar near you, look through the consistently updated schedule on the WSHFC website. Most of the seminars require you to be physically present and to reserve your seat, but the attendance qualifies you for the loan for up to 2 years. Out-of-state home buyers will likely want to schedule their seminar alongside other purposes for visiting, like attending an open house or meeting with a real estate agent. The seminar is also required by many of the local incentive programs covered later.
Selecting a Loan Officer
You are required to contact a Commission-sponsored loan officer and use their advice and expertise to continue along the process of applying for the Home Advantage program. You can find a list of available loan officers based on their region of operation and proficiency with assisting first-time home buyers on the WSHFC page and then verify the credentials of those you find interesting using the NMLS Consumer Access database search tool. While the loan officers typically work for a bank, you are not required to specifically use their place of employment. If you feel uncomfortable with your current loan officer, feel free to seek out second opinions from others on the list.
Find and Purchase Your Home
The final step in the Home Advantage process is finding a home that you love and finalizing the purchase. Several additional programs based on the exact location of the home won’t be available until you select a home in that area, and aspects of the loan – most importantly, the interest rate – can only be securely locked after you have a purchase and sale agreement that has been executed. You should work with a trusted real estate agency, your loan officer, lending institution, and relevant members of your household to pick the home that best fits your financial situation and family’s needs.
Other First-time Buyer Assistance Programs
Loan Incentives and Downpayment Assistance
The Home Advantage program also offers a downpayment assistance loan program that will contribute up to 4 percent of the total loan amount in order to cover the up-front costs of purchasing the home. Qualifying for the Home Advantage DPA follows the same requirements as the basic program, making it easy to apply if you are interested in using it.
To encourage new blood to move into their neighborhoods, the cities and counties of Washington also offer incentive programs for first-time home buyers that are restricted to the local level. As noted, most of these programs fall under the purview of the WSHFC and will require you to attend an educational seminar, and a Commission-sponsored loan officer can help you fill out applications and find the ones for which you qualify.
The city of Seattle has the highest available amount with up to $45,000 in financial assistance available for the purpose of covering a downpayment or associated closing costs. Its sister city of Tacoma offers up to $20,000 in assistance; Bellingham offers up to $40,000 in benefits; Bremerton up to $20,000; and home purchases in all of Pierce County are eligible for up to $20,000 as well.
Disabled persons and military veterans have additional assistance options available specifically for them. The HomeChoice program offers up to $15,000 at 1 percent over 30 years for those who are disabled or are caring for a disabled person and have an annual income lower than $73,600 across the state or higher in certain counties.
Veterans who received an honorable or medical discharge can access the House Key Veterans program for up to $10,000 in assistance at 3 percent over ten years. Unlike the other programs, this one is also available to those who have already purchased a home if the intended housing is located in a target area.
Educational Programs
The Washington Homeownership Resource Center is a free educational resource for potential and current homeowners on a wide variety of subjects. They can help you find nearby classes, provide counseling to guard against fraud, explain the foreclosure process, and direct you to additional resources.
The Washington State Department of Financial Information (DFI) maintains a web resource that covers everything from purchasing your first home to keeping it in the face of foreclosure. You can view their guide to home loans online in PDF format or order a free physical copy.
2 Point Highlight
The largest state-based incentive to encourage and enable first-time home buyers is the Home Advantage first mortgage loan program from the Washington State Housing Finance Commission.
To encourage new blood to move into their neighborhoods, the cities and counties of Washington also offer incentive programs for first-time home buyers that are restricted to the local level.
