Home Advantage is a program that is offered through the Washington State Housing Finance Commission. Home Advantage is typically combined with a Home Advantage second mortgage that can finance closing cost and the down payment. Unlike the House Key program (state bond), this program has unlimited funds available for qualified Washington home buyers.
The first mortgage can be FHA, VA, USDA 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, if using a Home Advantage DPA, 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 zero percent interest. Should the home owner convert the property to an investment/rental or sell the home, the second mortgage may be called due.
Here are some of the program 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)
- income limit of $215,000 (co-borrowers income may be removed if not needed for qualifying)
- 620 is the minimum credit score
- home buyers must attend a Home Buyer Education class that has been registered with WSHFC
As a WSHFC trained mortgage originator, I’m pleased to be able to offer their programs.
Ready to explore your home buying options?
I’ve been helping Washington State homebuyers navigate the mortgage process since 2000. No pressure, no jargon — just an honest conversation about what’s possible for you.
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About Rhonda Porter
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