Why you should compare FHA to a Home Advantage Mortgage

If your credit scores are 680 or higher and you’re considering buying a home located anywhere in Washington state using FHA for your mortgage, you may want to consider the Home Advantage Mortgage program.

Home Advantage is a mortgage program created by the Washington State Housing Finance Commission. Only Loan Officers, like yours truly, who have completed WSHFC training are allowed to offer this program.

The Home Advantage mortgage program has down payment assistance available in the form of a second mortgage based on four percent of the first primary loan at 0% interest with the payment deferred for 30 years. The second mortgage may be called due should the home owner sell, refinance or no longer occupy the home.

When a home buyer has credit scores of 680 or higher, Home Advantage offers greatly reduced mortgage insurance premiums with conventional financing. Last week I did a comparison of FHA to Home Advantage where the Home Advantage mortgage offered a lower monthly mortgage payment payment with less funds due at closing than an FHA mortgage with minimum down payment.

Plus, FHA mortgage insurance is set to remain on the life of the loan effective with case numbers issued after May 31, 2013. Conventional mortgage insurance automatically drop off once your loan to value reaches 78% (or you can request it to be removed if you think your loan to value is 80% or lower).

FHA may be a better option if a borrower has had a recent (three years ago or longer) short sale or foreclosure. Conventional financing has longer wait periods and requires more down payment than current FHA guidelines of 3 years and 3.5% down payment.

I’m happy to compare Home Advantage with (or without) down payment assistance to an FHA scenario on any home located in Washington state. Click here for a rate quote.


  1. I don’t believe it’s correct that “Conventional mortgage insurance automatically drop off once your loan to value reaches 80%.” I believe you are allowed to request PMI to be removed, but it won’t drop off automatically until amortization reaches 78% LTV. Correct me if I’m wrong. Thank you for all the great articles.

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