First-Time Home Buyer Washington: Programs, Grants And Resources

Washington State can be a great place to live, thanks to its booming economy and outdoor scenery. But the cost of living is above the national average, and first-time home buyers may face some hurdles. Fortunately, The Evergreen State does provide resources to make homeownership more affordable. Let’s look more closely at what first-time home buyers in Washington can expect.

What To Expect As A First-Time Home Buyer In Washington State

If you’re looking to buy a house in Washington, you’re not alone. Many people want to move to Washington State – from 2021 to 2022, its net migration was 83,300.

Net migration accounts for most of the state’s population growth, and the housing market remains strong. Here are some of the benefits of living in Washington State and why many people find it a great place to live:

• No income tax: Washington State isn’t the most affordable place to live, but one perk is that residents don’t have to pay income taxes. These savings can give you more room to work with in your budget.
• Innovation: The state is known for its business and innovation, with Starbucks, Amazon and Microsoft all headquartered there. And abundant opportunities are available in technology, aerospace, farming and agriculture.
• Beautiful weather: The Pacific Northwest has a reputation for gloomy weather, but this largely depends on where you live. Seattle is known for its rain, but the climate is drier in Eastern Washington. Overall, you’ll enjoy cooler summers and moderate winters.
• Outdoor scenery: Washington is a good place for anyone who enjoys hiking, mountain biking, fishing and other outdoor activities. The state has mountain ranges, state parks, and access to the Pacific Ocean as well as rivers and inland lakes.

Washington First-Time Home Buyer Loans

Here are some of the main types of loans available for first-time home buyers in Washington State:

• FHA loans: FHA loans are backed by the Federal Housing Administration (FHA), so they come with more flexible borrowing requirements. You can typically make a 3.5% down payment, with a credit score of at least 580.
• USDA loans: USDA loans help low- and moderate-income families purchase homes in eligible rural areas. The United States Department of Agriculture (USDA) backs the loan, and there are no down payment requirements. However, you’ll need to check the USDA’s property eligibility map to ensure your home qualifies.
• VA loans: VA loans are backed by the Department of Veteran Affairs (VA) and help veterans and active duty service members find affordable housing. These loans come with low rates, flexible credit requirements and no down payment requirements.
• Conventional loans: Conventional loans are offered by private lenders and aren’t backed by the government. Depending on your lender, you’ll need to meet specific requirements related to your down payment, credit score and debt-to-income (DTI) ratio.

Resources Available For First-Time Home Buyers In Washington

The Washington State Housing Finance Commission (WSHFC) makes homeownership possible through loan programs and grants for first-time home buyers. The first step is to attend a home buyer education seminar where you’ll learn about the different programs available.

From there, you can contact a loan officer and find out which grants and programs you qualify for. Let’s look at some of the main programs the state offers first-time home buyers.

First-Time Home Buyer Programs In Washington State

The WSHFC has two primary programs for first-time home buyers in Washington State — Home Advantage and House Key Opportunity. Here is an overview of each:

• Home Advantage: This program helps first-time home buyers in Washington State qualify for low interest rates. You’ll need a credit score of at least 620, a maximum DTI of 50% and an annual income of less than $180,000.
• House Key Opportunity: This program is designed for lower-income home buyers who are also using a down payment assistance program. Your income and home price limits are based on the type of home you buy and the location. You’ll receive a competitive interest rate on your mortgage if you qualify.

Statewide Down Payment Assistance In Washington State

Washington also has many grants available to first-time home buyers:

• Opportunity Down Payment Assistance: Up to $15,000 for House Key Opportunity participants
• Home Advantage Down Payment Assistance: Up to 5% of mortgage total for those using the Home Advantage program
• HomeChoice: Up to $15,000 for disabled buyers or those with a disabled family member
• Veterans: Up to $10,000 for military veterans

Local Down Payment Assistance In Washington State

• Settle Down Payment Assistance: Up to $55,000 for Seattle home buyers
• Bellingham: Up to $40,000 for Bellingham buyers
• Tacoma: Up to $30,000 for Tacoma buyers

Tips On Living In Washington As A First-Time Home Buyer

It’s a good idea to take advantage of free seminars that provide valuable information on buying and maintaining a home and finding resources that can help. Washington’s HUD website can provide tons of information specific to the state as well.

From there, you should check your credit score and determine the type of home you can afford. Once you know where you stand, you can get pre-approved for a mortgage. It’s a good idea to receive offers from several lenders so you can find the best rates and loan terms.

Where To Live In Washington State

Here are some of the best places to live in Washington State:

• Seattle: Seattle is known for its beautiful scenery, thriving nightlife and booming tech scene. Some of the largest tech companies are headquartered in Seattle.
• Tacoma: Tacoma has a lower cost of living than Seattle and it’s the third-largest city in the state. The city is known for its world-renowned glasswork.
• Spokane: Spokane is an urban, walkable community and residents will have easy access to ski resorts, trails and wineries.
• Vancouver: Vancouver is a quaint city across the river from Portland, offering shops and abundant recreational activities.

 If you want to see what types of homes are available, be sure to check out our list of Washington Homes for Sale.

The Bottom Line

Washington can be a great place to live, and there are many local and statewide programs and grants available to help. If you’re ready to apply for a mortgage, you can start the approval process with our sister company, Rocket Mortgage^®, today.