A Quick Guide to Down Payment Assistance in Washington State
It’s no secret that the Portland Metro area has been experiencing a hefty amount of growth in the past few years. That growth has put incredible strain on the housing industry, making home and rental prices skyrocket. While this is great for current homeowners who have seen their investments fatten considerably, people currently looking to purchase a home are facing some stiff circumstances that may push them out of the market altogether. Fortunately, many buyers can get into a home through down payment assistance offered through the state.
The down payment assistance programs available to you depend on a variety of factors, often including:
- loan type
- price point
- household income
- credit score
By working with your lender, you can learn which down payment programs could have the greatest impact, giving you the best chances of being able to purchase the home you’ve always wanted. Read on to learn more about some specific programs that could be available to you in SW Washington.
Home Advantage Down Payment Assistance
- Maximum income limit of $145,000
- Attendance at a homebuyer’s educational seminar
- Use a lender who is participating in the program for your loan
- Qualifying credit score
HomeChoice Down Payment Assistance Loan Program
HomeChoice is a fantastic down payment assistance program that helps qualified borrowers who are disabled or who live with a family member with a disability get into homes. These individuals can receive up to $15,000 in down payment assistance.
To get started in the program, you need to meet with a HomeChoice Lender. Only specific lenders who have been trained in the program may participate. Requirements include:
- Attending a free Home Buyer Education Seminar
- Annual income limits of $86,300 or less
- First time home buyer, or someone who has not owned and occupied a home within the past three years.
If you purchase a home in specific areas in Washington State, you do not need to be a first time buyer.
This loan comes with a 1% interest rate with payments that are deferred until the home is sold, refinanced, or 30 years pass.
At Hughes Team Realty, we are happy to send our Clark County HomeChoice clients to Angie Stillman with Umpqua Bank. She is one of our preferred lenders, and always does an amazing job for our clients.
USDA Home Loans
In some situations, the home loan you get may allow for 100 percent financing. The USDA Home Loan is such a loan. If you and your prospective home qualify for USDA financing, you may not need to worry about a down payment after all. The program is designed for low-to-moderate income borrowers who live in pre-designated rural areas. There are certain limitations to the application of this loan, so it is important to verify your potential home’s eligibility early in the process to avoid any last-minute surprises.
The Veterans Affairs (VA) loan is another type of mortgage that allows for zero down. This is only open to veterans, retirees and active duty personnel who served or are currently serving in one or more branches of the military. Because the loan is 100 percent financing, buyers don’t have to worry about receiving any down payment assistance. Due to the many provisions and benefits given to buyers through this loan, VA loans are often considered the best loan buyers can get when they purchase a home.