Down payment assistance programs are generally SECOND LOANS against the home you are purchasing. These programs are set up to loan an amount of money to the home buyer that will be paid back with interest over a period of time. The interest and monthly repayment amounts for these programs tend to be fairly low.
This will have an effect on what your total mortgage payment will be. In most cases the mortgage payment will consist of: your first loan (principal and interest), your second Down payment assistance loan (principal and interest), property taxes, homeowners insurance and your monthly mortgage insurance premium.
Down payment assistance programs can be a great fit for many would be homeowners, who wouldn’t otherwise be able to purchase a home on their own. After educating yourself on how different down payment assistance programs function, you may well discover that it is the perfect way to turn you from a renter into a homeowner.
There are many different types of down payment assistance programs available. We have programs fit for different geographic regions as well as different personal situations. There are general programs offering $1,000 to $10,000 in assistance, as well as more specific programs offering up to $45,000.
The amount of down payment assistance a person is eligible for will depend on their financial situation. A needs assessment form will take several factors into consideration to determine the amount of assistance alloted. The amount will depend on such things as a person’s income, liquid assets (not including retirement accounts or 401Ks) and the purchase price of the home.
You must attend one of our Home Buyer workshops to be eligible for our programs. The Washington State Housing Finance Commission requires that you attend one of our workshops in order to apply for down payment assistance. The workshop is FREE, and there is no obligation to move forward in the process if you decide the programs are not a good fit for you. If you would like to learn more about the programs, or gather more information on the home buying process in general, go to our Calendar/Reservations page and sign up for one of our free Home buyer workshops.
[...] Do I have to put 20% down in order to purchase a home? Twenty percent down is typically the amount needed in order to avoid mortgage insurance. However, it’s possible to put down as little as 3%, or even 0% when using down payment assistance programs. [...]