Washington Mortgage Loans FAQ

Q: What is the HomeChoice Down Payment Assistance Program?
A: HomeChoice Down Payment Assistance Program was designed to help qualifying Washington applicants to come by a down payment of up to $15,000 for their first home. (To be a first-time homebuyer for this program, you can't have owned a home in the last three years.) Most mortgage loans since the credit crunch demand a down payment as evidence that a borrower can muster the wherewithal it takes to buy and keep a home. According to the House Key State Bond Loan Program guidelines, Washington offers this program to those who are shown to have low or moderate incomes and who can qualify for other federal mortgage loans like those offered by the FHA and Fannie Mae. This program is also offered to those with disabilities or who have a disabled family member living with them. It is also available to people who aim to buy in certain areas of the state. Essentially it is a 1% APR loan apart from the mortgage. Ask your lender to check if you qualify.

Q: What is the HomeChoice Second Mortgage Program?
A: Many mortgage programs target first-time home owners. It is an attempt to increase homeownership, especially among those with lower incomes. But because of the current state of real estate and related banking, Washington is aiming at helping those who own homes already, but who also might have a hard time finding home equity loans. That's what the HomeChoice Second Mortgage Program was created for. The money in this program is lent to those who, again, qualify for the House Key State Bond Loan Program. The qualifying homeowners can use second mortgages for the very same reasons one would for any second mortgage, whether to improve their existing home or to consolidate debts, etc. These loans are offered at a fairly low interest rate.

Q: Do I qualify for the House Key State Bond Loan Program?
A: If you qualify for the "parent" program, then you may qualify for any of the above mortgage programs. The requirements for the House Key State Bond Loan Program are that you are:

• A first-time homebuyer,or
• Not the owner of a home in the last three years, or
• Disabled or supporting a disabled family member, or
• Aiming to buy a home in one of Washington's "targeted areas," and are
• Below the income and home purchase price limits established by the State.

You must also have:

• Been counseled by a loan officer trained in accordance with House Key provisions and
• Received a certificate from State-sponsored homebuyer education seminar in the past 2 years.