The Pacific Northwest is home to the state of Washington and the more than 6 million people who call it home. Interestingly, nearly 60% of the state's total population lives in the greater Seattle area. That means the rest of the state's 71,000 mi.² is up for grabs for the remaining 40% of the population.
First time home buyers in the state of Washington have plenty of options when it comes to where they want to live and what type of home they would like to purchase. For those finding it difficult to come up with the financial resources, there is a long list of first time home buyer programs available.
Programs in Washington come in the form of federally-funded loan programs, state administered programs, and other programs funded by counties, cities, and not-for-profit groups. Fortunately for Washington's first time home buyers, there are more programs available in their state than in most others. With such a wide selection, it is wise for first time home buyers to consult with their bankers and real estate agents to determine what's appropriate for them.
Washington State Housing Finance Commission
Like most states, Washington has created a public entity charged with the responsibility of securing and maintaining safe and affordable housing for all of the state's residents. The Washington State Housing Finance Commission (WSHFC) is the public entity in this state. It is self-funded through the sale of bonds and offers assistance to first time home buyers, repeat home buyers, low income individuals and families, and real estate developers. Where first time buyers are concerned the Commission provides assistance through two different loan programs and the federally backed mortgage certificate program.
WSHFC House Key State Bond Program
This first program offered by the WSHFC is based on a fixed-rate mortgage for 30 years. Interest rates vary depending on a choice of points the home buyer is allowed to make. For example, a mortgage with two points allows for an interest rate of 4.25% currently. The interest rate with one point is 4.5% while zero points garners an interest rate of 4.75%.
Before applying for one of these loans a first time home buyer must do two things. First, he must attend and complete a home buyer’s education course. Second, he must meet with a certified home loan specialist who can help him determine whether or not he qualifies. Without completing these two tasks no lender will even look at a first time home buyer for application.
These loans are typically made as VA, FHA, or RHS loans by a participating lender. If first time home buyers qualify, they could get a conventional loan backed by Fannie Mae or Freddie Mac. Only a qualified loan officer can adequately assess which type of loan is right for you.
A New Home for Your Pilot Program
This program is nearly identical to the previous program in terms of eligibility requirements, income levels, and so forth. The one major difference is that it is designed to encourage new home construction by providing loans for first time home buyers willing to build. It is also a fixed-rate loan for 30 years, with varying interest rates depending on the points chosen. It is typically .25% lower than loans procured under the House Key State Bond program. Lastly, the only other difference is that eligible first time buyers must have a minimum credit score of 680.
Mortgage Credit Certificates
The federal Mortgage Credit Certificate program is one which puts extra cash in your pocket on a monthly basis through federal tax credits. By taking advantage of these tax credits home buyers have more disposable income they can dedicate to a mortgage. While this program is available in all states, Washington makes extra efforts to publicize it because it can be quite effective in concert with their other loan programs.
Other First Time Home Buyer Programs in Washington
As mentioned at the start of this article, first time home buyers in Washington have many more opportunities than buyers in other states. That's because there's a large number of local and county programs currently in operation. Keep in mind that these types of programs have additional restrictions of their own which may or may not make you eligible. Administration of each of these programs is up to the individual city or county offering it. We have obtained a list from the department of Housing and Urban Development (HUD) and included it below. You may want to check with HUD from time to time to see if there are updates to this list.
- Bremerton Down Payment Assistance Program (DAP)
- Clark County Columbia Non-Profit Housing Corporation First Home Loan Program (FHLP)
- Kitsap County Down Payment Assistance Program (DPA)
- Kitsap County Vikings Crest SSP Program
- Lakewood Down Payment Assistance Program (DPA)
- Multi-Counties Spokane Neighborhood Action Programs Eastern Washington IDA Network (IDA)
- Pierce County Down Payment Assistance Program (DPAP)
- Richland Down Payment Assistance Program (DPAP)
- Seattle Delridge Neighborhood Development Association Down Payment Assistance Program (DAP)
- Seattle Down Payment Assistance Program "New Holly" Project
- Seattle First Time Home Buyer Grants Program (HAP)
- Seattle Homebuyer Assistance Program (HAP) Brandon Court Project
- Spokane County Down Payment Assistance Program (DPA)
- Spokane County Spokane Neighborhood Action Programs State Five Program (DAP)
- Spokane Down Payment Assistance Program (DPA)
- Tacoma Down Payment Assistance Program (DAP)
- Yakima Down Payment Assistance Program (DAP)