I just received notice from the Washington State Housing Finance Commission that they will stop accepting reservations for the House Key Opportunity program effective October 15, 2014 at 4:00 pm. Reserving funds is essentially locking the loan and committing to delivering the transaction to WSHFC. Reservations cannot be done unless there is a bona fide transaction with a closing date that will meet the delivery date of the reservation (lock period).
Funds for this program are limited and when they’re gone, they’re gone… at least until another housing revenue bond becomes available again.
WSHFC’s Home Advantage mortgage program does not rely on bonds and, unlike House Key Opportunity, it does not run out of funds.
What can you do if you were planning on using a House Key Opportunity (Washington state bond) mortgage program?
If you are not yet in contract (mutually accepted purchase and sales agreement) to buy a home, contact your WSHFC approved mortgage originator to see if Home Advantage will work for you. If you have a preapproval letter from a lender based on using House Key Opportunity, it may no longer be valid since the program is ending and it needs to be updated. You might qualify for a lower sales price and loan amount as House Key Opportunity offered below market mortgage rates. Home Advantage offers competitive rates and several down payment assistance programs.
If you have a House Key Opportunity mortgage in process, contact your mortgage professional to confirm that funds are reserved. If they are not reserved, your lender has limited time (until October 15, 2014) to accomplish this. If you have a delayed closing date (mid-to-late November and later), check with your lender to see if you are still able to use House Key Opportunity as it may not be enough time to deliver the loan to WSHFC.
If you are a Real Estate Broker working with a Home Buyer who is either preapproved or has a transaction in process using any type of down payment assistance programs, contact the mortgage professional asap to see if the buyers are relying on House Key/State Bond for financing and if they need a back up plan.
Again, Home Advantage is not running out of funds and is still readily available. If I can help you with your home purchase or refinance on property located anywhere in Washington state, please contact me.
PS: Check out upcoming WSHFC sponsored classes that I’m teaching by clicking here. Students who attend are eligible for mortgage programs like Home Advantage, down payment assistance and/or mortgage credit certificates (MCC).