Washington First Time Home Buying and Down Payment Assistance Programs

The Washington State Housing Finance Commission - WSHFC - offers home loan programs, downpayment assistance and access to homebuyer education and assistance programs to first time home buyers buying a home in Washington State.

Washington Home Purchase For First Time Homebuyers - House Key Loan Program

Eligible home buyers must be first time buyers, have household incomes that are either lower or match the HUD designated Maximum Annual Income Limits respective to the county where the homebuyer is buying their home. Homebuyers using this program will be restricted by maximum allowable home prices. Home prices vary depending on the county they are in.

Additionally, loans must be obtained through participating lenders who have been approved through the Washington State Housing Finance Commission to offer and work with these programs. Other qualifications for this program is that the homebuyer must complete a Commissioned sponsored home buyer education seminar and obtain a certificate of completion within the previous two years of their application date for the program.

Home Key Second Mortgage Loans For Downpayment Assistance

Mortgage Programs Are Offered by the Washington State Housing Finance Commission

• House Key King County – This program is only for homes and qualified home buyers in King County. The program allows a maximum second mortgage loan amount of $30,000 at 4% simple interest with a 30 year deferred payment feature. The loan is payable if the homebuyer sells their property, refinances, or transfers ownership, no longer occupies the home as their primary residence, and when the home is paid off.



• House Key Plus – The Plus program provides a second mortgage loan is a 5.0% interest rate loan that is in effect over a 10 year period. This program provides up to $10,000 in a loan and can be used for down payment and closing cost as necessary. The home buyer is not allowed to get any cash back at settlement. The loan must be paid back if homeownership is transferred. This program is for qualified home buyers.



• Home Choice – This program provides second mortgage loan funding for down payment and closing cost assistance to borrowers who are disabled or who have disabled family members living with them. The maximum amount for this program is $15,000. The loan is at 1% and has a deferred payment for 30 years. Maximum income and home value limits apply. There are special payoff features of this program that the homebuyer should ask about when applying.



• House Key Plus Seattle – Home buyers buying a home within the Seattle city limits are eligible for up to a $60,000 3% 30 year deferred payment second mortgage loan to help with closing costs and down payment expenses. There is a shared appreciation requirement for this program.



• House Key Schools – This is a second mortgage program limited to teachers and employees of community or technical collects and public or privates schools from K-12 grades. This program allows qualified borrowers to borrow up to $10,000 at 3% for a 10 year period to aid with their down payment and closing cost needs.



• House Key Plus Arch East King County - This program provides a maximum of $30,000 in down payment and closing cost assistance for qualified borrowers buying a home or condominium within an ARCH member city or surrounding unincorporated east King County ARCH area. The interest rate for this program is 4% simple interest. There are no monthly payments with the balance due and payable when the Borrower(s) 1) sells, refinances, transfers the property; 2) fails to maintain as principal place of residence; or 3) when the home is paid off (on or before 30 years).



• House Key Veterans – Veterans of the U.S Armed Forces or the Washington National Guard and Reserve who have received an honorable discharge or a medical discharge are eligible for this program. Also, never remarried spouses and dependent children of deceased veterans are eligible for this program. This program provides a second mortgage payable over a 10 year period at 3% simple interest. Borrowers cannot exceed certain income requirements.



• House Key Rural – The House Key Rural program is a second mortgage program to assist those qualified home buyers who are purchasing homes in participating areas in participating rural counties. The home buyers must meet certain income and home acquisition cost requirements. This loan program provides a second mortgage for up to 6% of the sales price or $10,000 whichever is higher based upon the borrower’s need and availability of funds. The interest rate for this program is 3% and is a deferred payment plan for up to 30 years, or until the borrower sells, refinances, transfers ownership in their property, no longer occupies the property as their principal residence, or when the home is paid off.

More information about the Washington State Housing Finance Commission down payment assistance programs and mortgage bond loan programs can be found on the Commission’s website: WSHFC.org.