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.
Home Advantage Mortgage with Down Payment Assistance
April 11, 2013 by 4 Comments
More options for Washington home buyers
April 5, 2013 by Leave a Comment
Yesterday I was “in class” at the Washington State Housing Finance Commission learning about programs they have to offer Washington home buyers, including down payment assistance programs.
In order to obtain the down payment assistance, you must use a WSHFC first mortgage product, which includes:
- Home Advantage
- House Key Opportunity (limited funds – state bond). UPDATE: As of June 26, 2013 – this program is not being offered by the Commission. Home Advantage is still available.
The first mortgages may be FHA, USDA, VA or conventional mortgages with private mortgage insurance.
The down payment assistance (DPA) is in the form of a second mortgage that have specific criteria home buyers must meet to qualify.
- Home Advantage DPA has an income limit of $97,000 and does not have a “needs assessment”.
- Commissioned Second Mortgage works with the House Key Opportunity and is available to home buyers with special needs.
Home buyers interested in either program must attend a 5 hour class in order to qualify for these programs. While at class yesterday, I also received training to be a “Commission trained instructor”.
Watch for more details to follow soon!
The ABC’s of Preparing to Buy Your First Home
December 13, 2012 by 1 Comment
Borrowers getting ready to buy their first home are often surprised…for different reasons. I find that some are surprised to learn that they do qualify for a home in their price range and some are disappointed to learn that they have a little work to do before they can buy a home. Getting preapproved with a mortgage professional helps take some of the “surprise” out of the process.
Are First Time Home Buyers Missing Out?
December 11, 2012 by Leave a Comment
A recent survey shows that those buying their first home are making up a smaller percentage of home buyers. From US News:
The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, released last week, found that first-time home buyers were purchasing only 34.7 percent of the homes sold in October. That’s down from 37.1 percent in September, and is the lowest percentage ever recorded by the survey.
This decline surfaces as purchases of non-distressed homes—houses that are not in foreclosure—have increased dramatically in 2012. The report shows that the vast majority of the homes being sold are regular purchases—accounting for 64.7 percent of all houses sold in October, up from 55.7 percent in February. The increase is a sign of strength in the housing market, as fewer people are buying homes in foreclosure.
The article continues to speculate that part of the reason why first time home buyers are not participating as much as other buyers is partly due to tightening underwriting guidelines. If someone has been considering buying their first home, I highly recommend they get started with the pre-approval process early.
Lenders want to avoid another mortgage meltdown and want to make sure that borrowers qualify for the new mortgage. That might sound like a silly or obvious comment, however during the “subprime era” many home buyers did not qualify for the mortgage. Ultimately, underwriting guidelines are intended to measure a borrowers capability to repay the mortgage and to not have the home become a “distressed property”.
Underwriters are looking for a borrowers financial strengths and weaknesses when reviewing an application for a mortgage. In an article I wrote a few years ago, I compared this to a chair with each leg of a chair representing a financial quality that underwriters consider: credit, employment, income and assets.
First time home buyers don’t need to be discouraged, they do need to be prepared. Mortgage rates are extremely low making this a great opportunity to buy if one wants to.
I’ll share some tips on what first time home buyers can do in a follow-up post.
Stay tuned!
What Do You Need for a Preapproval?
February 16, 2012 by 5 Comments
If you’re considering buying a home, many real estate agents and/or sellers will require a preapproval letter. A preapproval letter is different than being “prequalified”. Being prequalifed means that you have provided verbal information to a mortgage originator to get an idea of what you qualify for. Being preapproved means that you are providing documentation that supports the information you have provided. Income, employment, assets and credit are verified for a preapproval.
Some preapproval letters aren’t worth the paper they’re written on. Especially if the mortgage originator you’re working with does not require supporting documentation before preparing the letter. If you have not provided supporting documentation (listed below) to your mortgage originator – you’re probably just prequalified and not actually preapproved.
Here is a list of documents you may be required to provide in order to obtain a preapproval:
FHA Loan Limits for homes located in Washington State for November 18, 2011 and 2012
December 5, 2011 by Leave a Comment
A few days ago, HUD confirmed the 2012 FHA Mortgage limits which have been restored to the higher “temporary” higher loan limits effective November 18, 2011. This morning, HUD’s site is reflecting the revised loan amounts.
Here are the 2012 FHA loan limits which are retroactive for case numbers obtained November 18, 2011 or later for homes located in Washington:
King County, Snohomish County and Pierce County
- 1 Unit: $567,500
- 2 Unit: $726,500
- 3 Unit: $878,150
- 4 Unit: $1,091,351
Benton and Franklin Counties:
- 1 Unit: $275,000
- 2 Unit: $352,050
- 3 Unit: $525,550
- 4 Unit: $528,850
Chelan and Douglas Counties:
- 1 Unit: $342,700
- 2 Unit: $438,700
- 3 Unit: $530,300
- 4 Unit: $659,050
Clallam County:
- 1 Unit: $384,100
- 2 Unit: $491,700
- 3 Unit: $594,350
- 4 Unit: $738,650
Clark and Skamania Counties:
- 1 Unit: $418,750
- 2 Unit: $536,050
- 3 Unit: $648,000
- 4 Unit: $805,300
Island County:
- 1 Unit: $381,250
- 2 Unit: $488,050
- 3 Unit: $589,950
- 4 Unit: $733,150
Jefferson County:
- 1 Unit: $437,500
- 2 Unit: $560,050
- 3 Unit: $677,000
- 4 Unit: $841,350
Kitsap County:
- 1 Unit: $475,000
- 2 Unit: $608,100
- 3 Unit: $735,050
- 4 Unit: $913,450
Kittitas County:
- 1 Unit: $328,750
- 2 Unit: $420,850
- 3 Unit: $508,700
- 4 Unit: $632,200
Mason County:
- 1 Unit: $310,000
- 2 Unit: $396,850
- 3 Unit: $497,700
- 4 Unit: $596,150
San Juan County:
- 1 Unit: $593,750
- 2 Unit: $760,100
- 3 Unit: $918,800
- 4 Unit: $1,141,850
Skagit County:
- 1 Unit: $373,750
- 2 Unit: $478,450
- 3 Unit: $578,350
- 4 Unit: $718,750
Thurston County:
- 1 Unit: $361,250
- 2 Unit: $462,450
- 3 Unit: $559,000
- 4 Unit: $694,700
Whatcom County:
- 1 Unit: $375,000
- 2 Unit: $480,050
- 3 Unit: $580,300
- 4 Unit: $721,150
Adams, Asotin, Cowlitz, Ferry, Garfield, Grant, Grays Harbor, Lewis, Lincoln, Okanogan, Pacific, Pend Oreille, Spokane, Stevens, Whakiakum, Walla Walla, Whitman and Yakima Counties:
- 1 Unit: $271,051
- 2 Unit: $347,009
- 3 Unit: $419,425
- 4 Unit: $521,250
Related post:
The Low Down: Comparing FHA to Fannie Mae Homepath Mortgages
September 13, 2011 by Leave a Comment
EDITORS NOTE: Fannie Mae is no longer offering the FannieMae HomePath mortgage program. If you are considering buying a Fannie Mae HomePath property (foreclosure that is owned by Fannie Mae) in Washington state, I’m happy to help you.
If you’re thinking about buying a home with minimum down payment requirements in the greater Seattle area, you may be considering a property that is owned by Fannie Mae and eligible for the Fannie Mae Homepath Mortgage or using an FHA insured loan which most properties qualify for. When home buyers contact me about a Fannie Mae Homepath mortgage, they often ask how it compares to an FHA insured loan. Both are great programs and the benefits may vary depending on credit score, down payment and the type of property.
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