This is another downpayment program offered by the Washington State Housing Finance Commission. As much as $24,900 is offered as a second mortgage with a simple interest of 4%.
Repayment of this loan is deferred for up to 30 years; the loan amount only becomes due at the time that the property is sold, refinanced, transferred, is no longer owner-occupied, or has the first mortgage paid off. A $1,000 minimum payment is required from the applicant to be put towards the home purchase, but this amount can be gifted if necessary.
Only first-time homebuyers are allowed to participate in this program. Furthermore, applicants must participate in a homebuying education seminar, which is also offered by the Washington State Housing Finance Commission, and obtain a certificate of completion. As of 2020, seminars are virtual only. They are five hours or longer and offer information necessary to purchase, own and maintain a home. Advanced reservations are required for seminars. Pre-purchase counseling on an individual basis will also be required.
Individuals must also meet the following income limits (as of 2020):
person household: $41,750
2 person household: $47,700
3 person household: $53,650
4 person household: $59,600
5 person household: $64,400
6 person household: $69,150
7 person household: $73,950
8 person household: $76,500
Only houses that will be owner-occupied will be allowed. The property must be in Pierce County, but not Tacoma, Lakewood, Bonney Lake, Auburn, or Pacific City.
The property must fall within the following purchase price limits for 2020:
- Existing Construction - $247,000
- New Construction - $303,990
Furthermore, the property cannot have had any tenants within 90 days of the sale agreement or closing.
Other programs in Washington:
- Tacoma Down Payment Assistance Program
- Seattle Downpayment Assistance Program
- Opportunity Downpayment Assistance Loan Program
- HomeChoice Down Payment Assistance Program
- Bellingham Downpayment Assistance
- ARCH East King County Downpayment Assistance Loan
- Home Advantage Down Payment Assistance Loan Program
- Veterans Downpayment Assistance Loan Program