Home Advantage Program Offers Loans for Down Payment Assistance
The Washington State Housing Finance Commission has developed the Home Advantage Down Payment Assistance Loan Program, specifically designed to support potential homebuyers in managing the substantial upfront costs associated with purchasing a home. This initiative is a crucial step towards making homeownership more accessible and affordable.
Overview of Available Assistance
The Home Advantage Down Payment Assistance Loan Program offers a second mortgage at a zero percent interest rate. This loan is intended to be used alongside the Home Advantage first mortgage. Notably, all payments on this loan are deferred for 30 years, providing significant financial relief to homebuyers. Eligible households across all counties may qualify for a loan amounting to up to 4 percent of the total first mortgage loan amount.
Additionally, households that meet specific needs-based criteria, as determined by a loan officer, and fall within certain income limits, may be eligible for a loan amount of up to $10,000. This loan comes with a 1 percent interest rate and is also deferred for 30 years. It’s important to note that Veterans are automatically eligible for this $10,000 loan amount without the need for a needs-based assessment.
To be eligible for the Home Advantage Down Payment Assistance Loan Program, applicants must meet the following criteria:
- The annual household income of homebuyers must not exceed $97,000.
- Applicants are required to attend a Commission-sponsored homebuyer education seminar before reserving funds under the Home Advantage Program.
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 be aware that these figures were accurate at the time of publication and may have changed. It is recommended to visit the program’s website for the most up-to-date information.
The primary goal of the Home Advantage Down Payment Assistance Loan Program is to provide financial assistance to eligible applicants who are eager to purchase a home but are hindered by the substantial upfront costs. These costs, which include the down payment, closing costs, and prepaid items, can be a significant barrier to transitioning from renting to owning a home. By offering financial support and setting clear guidelines, the program plays a crucial role in helping individuals overcome the financial challenges of purchasing a home and escaping the renter’s trap.