Washington First-Time Homebuyer Programs and Partners
Table of Content
There are maximum loan limits for each type of mortgage program which are set at the county level. Conforming loan limits are the maximum loan amounts allowed for conventional mortgages. This is not necessarily how much you can borrow though, but the maximum amount allowed in your location. The amount that you can personal qualify for will be based upon your income, and how much debt you have. For most loans, your monthly mortgage payment, along with your monthly debts may not exceed 43% of your income.
Also, if the property you are purchasing is located in a ‘targeted area,’ you do not have to be a first-time homebuyer to qualify for the WSHFC House Key Opportunity. Like the WSHFC Home Advantage program, you must complete a first-time homebuyer seminar to qualify. In most situations, you need a 620 credit score or better to get a VA loan. You’ll also need to pay a VA funding fee, which ranges anywhere from 1.25% to 2.4% of your home’s value depending on whether or not you choose to make a down payment. FirstHomeAdvisor ® is an equal opportunity housing provider for first-time buyers. FirstHomeAdvisor.com ® is an equal opportunity housing provider for first-time buyers.
Island County
In exchange for cash, home buyers agree to live in their home and make payments for five years, at minimum. By definition, grants don’t require repayment because grants are a contribution to a public good. For first-time home buyers, that public good is homeownership and community. Be sure to use Bankrate’s guide to first-time homebuyer programs to find out if you qualify for other nationally-available forms of assistance.
Grant sizes range from $500 to $50,000 and can be applied toward mortgage closing costs, mortgage rate reductions, and down payments on a home. First-time homebuyers in Washington can also find help through local housing initiatives. In Seattle, for example, individual homebuyers with an annual income under $75,380 could qualify for up to $55,000 to cover closing costs and a portion of a down payment. Other areas, including Tacoma, Bellingham and Pierce County, have similar programs.
Best Mortgage Lenders
One of the last things you want is to purchase a home, only to find that you may not be able to afford it. Homes require regular maintenance, and the costs can quickly add up. Water heaters can break down, garage doors may need repairs, and property taxes and insurance costs could increase each year. And don’t forget to account for non-housing related expenses, such as childcare expenses, food, cell phone, or car maintenance. The First-Time Home Buyer Tax Credit Act is working its way through Congress. The first-time buyer program would refund up to $15,000 in tax liability to first-time home buyers retroactively to December 31, 2020.
Fannie Mae HomeReady® Mortgages allow down payments as low as 3% for low-income borrowers. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above. Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants. For those with a lower credit score, you may need to pay a down payment of up to 10% of the home’s value. The Washington State Housing Finance Commission is a state housing finance agency for Washington.
FHA Down Payments
Recipients must have an average credit rating, qualify for anFHA loan, and agree to use a 30-year fixed-rate mortgage, among other qualifications. VA loans offer 100% financing for buyers with a 620 minimum FICO score. Home buyers can use VA loans to purchase any residential property in the United States. Mortgage rate discounts for first-time buyers vary based on credit score, down payment size, and property type. If you or someone in your household is living with a disability, you might qualify for up to $15,000 in down payment assistance, also as a second mortgage. The second loan has a 1 percent interest rate and, like other down payment assistance, defers payments for 30 years.
This agency delivers a variety of homebuyer assistance programs throughout the state. To qualify for the program, homebuyers must complete a homebuyer education seminar and work with a participating lender. An NHF grant is a housing grant for first-time home buyers awarded by theNational Homebuyers Fund. NHF awards housing grants for up to 5 percent of a home’s purchase price. Credit score requirements vary, depending on the homebuyer assistance program.
If you’re paying market rent, it’s very likely that you could drastically reduce your housing costs by owning your own home. For example, if you make a down payment below 20%, thereby putting your loan-to-value ratio above 80%, you’ll probably be required to pay mortgage insurance. Credit score requirements to buy a home in Washington state vary from one lender to the next. Generally speaking, a credit score in the low 600s will enable you to qualify for a home, but credit scores over 700 usually get you better terms.
Many potential homebuyers in Washington are intimidated about home ownership. One way to minimize the fear of the home buying process is to attend one of our first time homebuyer classes. These classes will arm you a high-quality road map for buying a home. If you’re already working with a lender, they’ll be able to give you an estimate of how much you’ll qualify for based on your income and how much you’ll need to bring to the table at closing. No matter where you buy a home, the purchase will impact your budget.
The City of Tacoma’s down payment assistance program combines with the Washington State Housing Finance Commission’s Home Advantage first mortgage loan program. If eligible, you can borrow up to $30,000 at a simple interest rate of 2 percent. This program is also designed to help first-time homebuyers in Washington lock in below-market interest rates. First-time homebuyers must meet income and acquisition cost limits, which vary from county to county and change based on the size of your household.
All information provided is for preliminary planning purposes only. This website may contain incomplete or out-of-date information. All measurements, dimensions, and floor plans are subject to change, and must be verified by the buyer prior to purchase.
Department of Housing and Urban Development , insures mortgages for borrowers with lower credit scores. Homebuyers choose from a list of approved lenders that participate in the program. Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers with FICO® credit scores of 580 or higher. First time home buyers in Tacoma may receive up to $20,000 in down payment assistance. The funds are received as a deferred loan with a 4% simple interest rate, but monthly payments are not required.
The Tacoma down payment assistance loan program is a second mortgage issued at a 2% interest rate, and combines with the Home Advantage or Opportunity first mortgage loans. First-time home buyer programs in the state may have certain requirements you must qualify for, including income and purchase price. However, if you meet the criteria, you can save on the interest with mortgage loans or get down payment and closing cost assistance.
The objective of our first time homebuyer classes is to answer your questions and help you make smart decisions. Be an “educated home buyer” before signing a contract to buy a six figure home. Washington State Housing Finance Commission sponsored homebuyer education seminars are the first step in purchasing a home.
Comments
Post a Comment