Apr 26, 2022
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Home values have been rising throughout Washington state and are up 11.3% from a year ago. According to Zillow’s Home Value Index (ZHVI), the typical value of a single-family home in Washington is currently $452,082.
Current mortgage rates in WA
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Mortgages in Washington
These programs are not all exclusively for first-time homebuyers. Veterans and individuals buying homes in the state’s targeted areas may also qualify for assistance.
However, these programs are primarily for lower-income households, so your household’s income cannot exceed $145,000.
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More: Get a free credit score and credit monitoring from Credit Sesame.
Home Advantage Program
This program is designed to help residents secure a good interest rate on a home loan. Working through one of the commission’s participating lenders, you’ll qualify for a 30-year mortgage with a special interest rate as well as down payment assistance of up to 4% of your total loan.
You can find the Home Advantage rates on WSHFC’s website.
Home Advantage Down Payment Assistance
WSHFC recognizes that for many households, a significant hurdle to becoming a homeowner is the down payment and closing costs.
The commission lowers this barrier by offering loans you can use to pay these upfront costs. You’ll need to have a mortgage through the Home Advantage program and a minimum credit score of 620.
With the Home Advantage DPA, you can qualify for up to 4% of the total loan amount or even 5% if you’re using WSHFC’s conventional HFA Preferred loan.
The loan has a 0% interest rate, and you won’t need to make any payments for 30 years.
Home Advantage Down Payment Assistance – Needs Based Program
This down payment assistance program also requires you to have a Home Advantage mortgage.
With the needs-based program, you can receive a loan of up to $10,000, with a 1% interest rate. Payment will still be deferred for 30 years.
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Because this is a needs-based program, you’ll have to meet specific household income limits: no more than $113,300 in King/Snohomish and $89,800 in all other counties. However, if you are a veteran, you are exempt from the assessment of need.
More: Use these savings accounts to build up your down payment.
House Key Opportunity Program
This program helps first-time homebuyers — and those buying in targeted areas — secure a mortgage with a below-market interest rate.
To qualify for help, you’ll have to fall within your region’s income limits, and your loan cannot exceed $510,400.
You’ll also have to qualify for one of the commission’s compatible down payment assistance loans, including the Opportunity DPA — unless you’re buying a brand-new property that’s never been occupied.
Opportunity DPA
Opportunity is a down payment assistance program that offers up to $10,000 in the form of a second mortgage. It’s tied to the House Key Opportunity Program, so you need to qualify for the primary mortgage first.
The down payment assistance loan comes with a 1% interest rate, but payment will be deferred for 30 years.
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Sigrid is a senior associate editor on the Moneywise team, where she has also worked as a reporter and staff writer.
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