First time homebuyers who meet the program guidelines, may be eligible to obtain below market interest rates for their 1st mortgage with the option to also obtain a 2nd mortgage to cover down payment, closing costs and/or prepaids.   By definition, if you have not owned a home within the past 3-years, you are deemed to be a 1st time homebuyer making you potentially eligible for one of the down payment assistance programs through the Washington State Housing Finance Commission (WSHFC).  WSHFC offers below market interest rates to help low to moderate income homebuyers purchase their first home.  WSHFC programs have income and acquisition cost limits that qualified borrowers must meet.

The first mortgage loan program will be either an FHA or a VA loan using the interest rates provided by the WSHFC.  Current rate offerings on existing homes are at:

4.000% interest rate = 2% loan origination fee

4.250% interest rate = 1% loan origination fee

4.000% interest rate = 0% loan origination fee

Current rate offerings on new homes that have never been occupied and the Borrower has a mid credit score of 680 or higher are at:

3.750% interest rate = 2% loan origination fee

4.000% interest rate = 1% loan origination fee

4.250% interest rate = 0% loan origination fee

Note:  A loan origination fee is a percentage of the loan amount i.e. on a $100,000 loan with a 1% loan origination fee, the cost for that interest rate is $1000.

WSHFC offers the following down payment assistance programs that may be used for either your down payment and/or closing costs and prepaids up to the dollar limit of the specific program being used:

   House Key Plus is a second mortgage program for qualified borrowers. This program funds up to $10,000 in all counties at a 5% interest rate.

  House Key Plus ARCH East King County is a second mortgage program for qualified borrowers buying a home or condominium within an ARCH member city or surrounding unincorporated east King County ARCH area.   Funds unavailable: taking a wait list based on cancellations

  House Key Plus Bremerton is a second mortgage program with a 3.00% interest rate and a fifteen-year loan term for people buying in Bremerton City Limits.

  HomeChoice is a second mortgage program for qualified borrowers who have a disability or a family member with a disability living with them.  Funds up to $15,000 with no monthly payment.  One-on-one counseling is required.

  House Key Schools is a second mortgage program for teachers and employees of community or technical colleges and K-12 public or private schools.  Funds up to $10,000 at a 3% interest rate.

  House Key Plus Seattle is a second mortgage program for people living within the city limits of Seattle.

  House Key Veterans is a second mortgage program for Veterans who have served our country. Funds up to $10,000.

To stay current on the interest rates offered; income limits and purchase price limits, go to www.wshfc.org.

To be eligible for any of the above program, you’ll be required to attend a 5-hours WSHFC sponsored 1st time homebuyer class.  I teach this class on the 2nd Saturday of each month from 8:30 a.m. to 1:30 p.m.  Call for location information.