ARCH’s Loan Program Aids East King County Homebuyers with Downpayments
The ARCH East King County Downpayment Assistance Loan Program, in collaboration with the Home Advantage first mortgage loan program, is designed to support qualified borrowers who are looking to purchase a home or condominium within an ARCH member city. This initiative is a significant step towards making homeownership more accessible and affordable in the East King County area.
Details of Available Assistance
The program offers substantial financial aid for down payments, providing up to $30,000 at a 4 percent simple interest rate. To qualify, borrowers are required to contribute a minimum of 2 percent of the purchase price as a down payment. Notably, up to half of this down payment can be covered through gift funds. One of the attractive features of this loan is that there are no monthly payments. The loan balance becomes due under circumstances such as the sale, refinancing, transfer of the home, payoff of the primary mortgage, or if the home is no longer the borrower’s primary residence.
Eligibility Requirements
This program is unique in that it is not exclusively for first-time homebuyers, thus widening the pool of potential beneficiaries. However, applicants must fulfill certain criteria:
- Completion of a free Homebuyer Education Seminar sponsored by the Washington State Housing Finance Commission is mandatory.
- Applicants must also engage in a free, one-on-one, pre-purchase counseling session.
- It is important to note that online Homebuyer Education does not satisfy the seminar requirement for this program.
The program is available to residents of specific cities, including Beaux Arts Village, Bellevue, Bothell, Clyde Hill, Hunts Point, Issaquah, Kenmore, Kirkland, Medina, Mercer Island, Newcastle, Redmond, Sammamish, Woodinville, and Yarrow Point.
Property Guidelines
To be eligible, the property in question must be the borrower’s primary residence and owner-occupied. In line with federal guidelines, the property should not have been tenant-occupied within 90 days prior to the purchase and sale agreement. The program sets a purchase price limit of $373,000 for both new and existing constructions.
Income Limits
The program has established income limits based on household size, as follows:
- 1 person household: $50,400
- 2 person household: $57,600
- 3 person household: $64,800
- 4 person household: $72,000
- 5 person household: $77,800
- 6 person household: $83,350
- 7 person household: $89,300
- 8 person household: $95,050
In summary, the ARCH East King County Downpayment Assistance Loan Program is a comprehensive initiative aimed at facilitating homeownership among a broader range of individuals in the East King County area. By providing significant financial assistance and setting clear guidelines, the program is an invaluable resource for those aspiring to own a home in this community.
