City of Spokane Down Payment Assistance

What is City of Spokane Down Payment Assistance?

City of Spokane Down Payment Assistance is a deferred second loan for homebuyers in Spokane, Washington.

• City of Spokane down payment assistance program — funded by City of Spokane CDBG / HOME funds and administered by Community Frameworks for first-time homebuyers purchasing within the City of Spokane corporate limits.
• Deferred 0% second mortgage of typically $5,000-$20,000 for first-time homebuyers purchasing a primary residence within the City of Spokane corporate limits. Funded by City of Spokane CDBG / HOME funds and administered by Community Frameworks (a Spokane-based CDFI). No monthly payment.
• principal due on sale, refinance with cash-out, or when home ceases to be primary residence. May be partially forgiven over the HUD HOME affordability period.
• Funding comes from Federal, HUD, HOME, CDBG, and Local.

Do you have to pay it back?

City of Spokane Down Payment Assistance is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven over HUD HOME affordability period and payable in full on sale, refinance with cash-out, or vacating primary residence.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Spokane Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Spokane Down Payment Assistance limits household income to 80% of the area median income, which varies by county and household size.

• Household income $54,800 (1 person) to $103,400 (8 person) per HUD HOME 80% AMI limits for Spokane MSA.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Spokane Down Payment Assistance caps the purchase price as follows: Subject to HUD HOME maximum sales price for Spokane MSA (existing/new); verify current limit with Community Frameworks.

• Eligible property types include Single-family detached, condo, townhouse, 2-4 unit (with owner-occupancy), manufactured on land.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

City of Spokane Down Payment Assistance names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

City of Spokane Down Payment Assistance serves buyers purchasing in Spokane, Washington.

• The program targets specific areas: City of Spokane corporate limits.

How do you apply?

Applications for City of Spokane Down Payment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Community Frameworks HUD-approved homebuyer education or other HUD-approved 8-hour course.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply via Community Frameworks; first-come first-served subject to annual City of Spokane HOME / CDBG allocation, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.