MyFirstPlaceNW

WA State has the 8th lowest mortgage closing costs in the entire nation!  The Puget Sound Business Journal reported the estimated average in our state to be $3,418.

That’s still alot of money!  Closing costs cover everything from origination fees, to appraisal fees, to title and escrow fees, etc, and they can definitely add up quickly.

Do I have to pay those fees to buy a house?  Yes, these fees generally have to be paid by someone, but they don’t necessarily have to come out of your pocket directly.

Our state understands the difficulty of being a first time home buyer, and wants to help.  There are numereous down payment assistance programs that can be utilized for down payments OR closing costs, OR BOTH!

In many cases, you can buy your first home for as little as $1,000 out of pocket.  Although, you have to be a first time home buyer and meet certain requirements to be eligible.

To find out more about these down payment assistance programs and their guidelines, go to our Calendar/Reservations page and register for one of our free First Time Home Buyer workshops.

Down payment assistance programs are set up to help First Time Home Buyers purchase their first home.  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 First Time Home Buyers, 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 First Time 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 First Time Home Buyer workshops.

Can I get down payment assistance if I’ve owned a home before?  Yes.  Generally, down payment assistance is intended to help FIRST TIME HOME BUYERS purchase a home they may not other wise be able to afford.  However, the Washington State Housing Finance Commission’s definition of a first time home buyer is someone that has not owned a home in the last 3 years.

How do they know if I’ve owned before?  To make sure you haven’t owned property in the last 3 years, the commission will collect 3 years worth of tax returns.  They look at these tax returns to make sure you weren’t deducting any mortgage interest for owning a home.

So that’s all I have to prove?  Not exactly.  There are income limitations and acquisitions costs that you have to meet as well, but these can vary from county to county.  So you need to find out what the exact criteria is for your specific area.

You also need to attend a workshop!  The commission requires that you attend one of our free First Time Home Buyer workshops BEFORE you can take advantage of any of the First Time Home Buyer programs.  They just want to make sure that you are aware of the pros and cons of owning a home before you make such a major decision.

Once you attend a workshop, you will receive a certificate that will allow you to apply for any of the state funded programs.  If you’d like to attend one of our First Time Home Buyer workshops, go to our Calendar/Reservations page and register for one of our free classes.  Don’t make such a huge decision before getting educated!