First Time Buyer Loan Programs

1. Loan Programs

When searching for a loan program, it’s important to choose the best program that fits your personal wants and needs. The right type of loan for you depends on many different factors, such as:

We recommend all borrowers attend our First-Time Homebuyer Education Seminar sponsored by the Washington State Housing Finance Commission (WSHFC). This class will give you a good understanding of the home buying process, with a large portion of class devoted to the loan process. Completion of a WSHFC sponsored seminar is also required to participate in a number of loan programs available for first-time homebuyers.

The various residential loan programs offered by Lenders can be divided into 3 main groups more>

What type of loan of will you qualify for? There are several questions that every lender will be asking you. You can start by asking more>

2. Down Payment/Purchase Assistance Programs

Through private and public partnerships, organizations either state sponsored, non-profit entities or certain lending institutions provide down payment and/or purchase assistance to qualified first-time homebuyers in King and Snohomish County. Qualified borrowers may receive assistance towards the purchase of a home in the form of grants and/or low interest loans with small or deferred payments. Organizations that provide purchase assistance to First Time Buyers are usually credit history versus credit score driven. Loan interest rates, terms, and amount may vary, depending on your income level and the location of the property that you purchase.

To be eligible you must:

  1. Be a first-time homebuyer. Definition of a first-time homebuyer is someone who has not owned a home in the past three years. There may be exceptions based on individual's circumstances.
  2. Be within the income limits of the specific program.
  3. Complete an approved First Time Buyer Seminar.
  4. Complete Financial Counseling and be pre-approved.
  5. Down payment assistance is available in all of King and Snohomish Counties.
  6. Deferred purchase assistance is available within Seattle City Limits, selected areas in King County and all of Snohomish County.
  7. All clients receiving purchase assistance, including all persons who will appear on the mortgage, must complete the educational requirement.
  8. If you would like to register for class in Seattle or Lynnwood, please call us or click below for a schedule.

What is down payment assistance? Down payment assistance can come in several forms and is often an important part of First Time Buyer Loan Programs. It can come in the form of a grant, a second mortgage, a deferred payment loan or just a special component of your loan program that requires less than the normal amount of up front cash required from you. These programs recognize that it may difficult for many First Time Buyers to save up the amount of cash typically required for a home loan.

What is purchase assistance? Purchase assistance is usually in the form of a deferred payment second or third mortgage loan or a reduced interest rate second or third mortgage loan. The goal of purchase assistance programs is to help more people, particularly those with low to moderate income become homeowners. In general, these programs increase the amount of house you can afford, while keeping your payment at a reduced level.

Where does the money come from? Down payment/purchase assistance funds typically come from different levels of government such as Federal, State, County or City to help low or moderate income buyers become homeowners. Some lending institutions may also have grants or down payment assistance.

How do I qualify? Most down payment/purchase assistance programs are for lower to moderate- income borrowers and require that you meet income limits and attend an approved homebuyer education seminar. There are different income levels depending on the program and where the money is coming from. YES, this can be confusing at first. Please contact us- we are more than happy to help you determine which programs you qualify for.

There are three different types of assistance:

  1. Grants are funds that you normally do not have to repay. However, many grant programs do require that you own the property for a minimum amount of years before you qualify for no re-payment. Grants typically are smaller amounts than the loan funds that are available and there are very few true grants which you do not have to payback.
  2. Deferred loans eventually do have to be re-paid, but only after a period of time. Most deferred loans are at a below market interest rate.
  3. Second Mortgage Loans may be offered at a below market interest rates, but re-payment starts immediately.

Can I use more than one down payment/purchase assistance program? The answer is YES. Combining down payment assistance programs is also known as “layered financing.” Not all programs can be combined. Please call us to review your situation.

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Median Income Chart
Washington State Housing Finance Commission (WSHFC) Income Limit Chart
Questions? Contact us

3. Local Assistance Programs & Organizations

There are numerous organizations and programs available in King and Snohomish counties dedicated to First Time Buyer loan programs. Each program has its own particular prerequisites and guidelines. It is very important to note, that not every Loan Officer can do every loan program. We can help you work through the maze of programs and qualification guidelines. Our goal is to help you find the very best loan program so you can fulfill your Home Ownership goals.

Washington State Housing Finance Commission (WSHFC)
WSHFC offers a wide variety of programs for First Time Home Buyers. There are income limits for each program- please click below to see the WSHFC income limit chart. In addition each program has several other specifications, please, call with any of your questions! We have fulfilled all of the WSHFC requirements for Real Estate Agents, our 1st Time Buyer seminars are sponsored by WSHFC and we have worked with many, many clients using WSHFC loan programs.
These programs include: more>

HomeSight
HomeSight is a non-profit organization which promotes affordable homeownership opportunities through more>

ACORN Housing
ACORN Housing is a nonprofit HUD certified housing counseling agency that provides more>

Parkview Services
Parkview's Homeownership Program offers home buying assistance to individuals with developmental disabilities and/or those more>

IDHA
(International District Housing Alliance) IDHA specializes in serving clients of low to moderate income, with English as their second more>