Home Advantage
Who’s It For?
Washington state buyers who would like help with a down payment. Not limited to first time home buyers.
How does it work?
Down payment assistance is available with a second mortgage. The first mortgage can be FHA, VA, or a conventional mortgage. With a 680 or higher credit score, the conventional mortgage offers reduced mortgage insurance premiums which makes this a very attractive option for home buyers shy on down payment who have been considering FHA.
The second mortgage has a maximum loan amount of 4% of the first mortgage loan amount and the payment is deferred for 30 years (or until the property is no longer owner occupied) at 0% percent interest. Should the home owner convert the property to an investment/rental or sell the home, the second mortgage may be called due.
Guidelines
- Property must be owner-occupied, primary residence
- Only for homes in Washington State
- You do not need to be a first-time home buyer
- Maximum debt-to-income ratio is 45% (exceptions up to 50% with specific compensating factors)
- 620 is the minimum credit score
- Home Buyers must attend a Home Buyer Education Seminar registered with the WSHFC
- $97,000 income limit
- Co-borrowers income may be removed if needed
WSHFC Homebuyer Education Seminars
Mortgage Master offers commission-sponsored education seminars for first time homebuyers. They are free and open to the public, include information about the Commission’s first mortgage programs, down payment assistance, and other loan programs; and are accepted by all affordable housing loan programs as meeting or exceeding educational requirements.
- Seminars are at least five hours in length, covering all major aspects of the home buying process
- Seminars are presented in an open, unbiased format
- Seminars use approved training materials and handouts
- Seminars are offered by professionals who have attended the Commission’s instructor training
- No direct marketing or sales presentations may be given either by the instructor or any guest speakers
