Financial Aid for Veterans: Downpayment Assistance Loan Program
The Washington State Housing Finance Commission has established the Veterans Downpayment Assistance Loan Program, a dedicated initiative to support Washington State veterans who have honorably served our country. This program is designed to provide financial assistance specifically for down payments, helping veterans in their journey toward homeownership.
Overview of Available Assistance
The Veterans Downpayment Assistance Loan Program works in conjunction with the Home Advantage First mortgage loan program. It offers down payment assistance in the form of a second mortgage. This loan features a 3 percent interest rate and a ten-year loan term, making it a manageable financial commitment for veterans. Eligible households may qualify for a loan amount of up to $10,000, providing significant support in covering initial housing costs.
To be eligible for this program, applicants must meet one of the following criteria:
- Individuals who have received an honorable discharge or a discharge for medical reasons with an honorable record.
- Members and honorably discharged former members of the Washington National Guard and Reserve.
- Never remarried spouses and dependent children of deceased Veterans.
Additionally, all borrowers must be first-time homebuyers or purchasing in a targeted area and must qualify for the Home Advantage Program first mortgage. It is also mandatory for applicants to attend a commission-sponsored homebuyer education seminar before reserving funds.
The program has set specific income limits based on the county:
- King/Snohomish County: $96,000
- Kitsap County: $77,100
- Island County: $77,300
- All Other Counties: $76,500
Prospective applicants should note that these figures were accurate at the time of publication and may have changed. For the most current information, visiting the program’s website is recommended.
Targeted areas are defined as census tracts within Washington state that meet federal guidelines for being economically distressed. These areas are given special consideration under the program.
The Veterans Downpayment Assistance Loan Program is a crucial tool in making homeownership more attainable for those who have served our nation. By providing financial assistance for upfront costs such as down payments, closing costs, and prepaid items, the program aims to alleviate the financial burden that often hinders the transition from renting to owning a home. This initiative not only honors the service of our veterans but also assists them in achieving the dream of owning their own home.