Downpayment Assistance Program

What is Downpayment Assistance Program?

Downpayment Assistance Program is a deferred second loan for homebuyers in Seattle, Washington.

• City of Seattle Office of Housing Downpayment Assistance Program — funded by HUD HOME and the Seattle Housing Levy. Provides 0% deferred second mortgages to first-time homebuyers purchasing within the City of Seattle. Typically delivered via Office of Housing partner agencies (HomeSight, Habitat for Humanity Seattle, etc.).
• Deferred 0% second mortgage of typically $10,000-$55,000+ for income-qualified first-time homebuyers purchasing a primary residence within the City of Seattle. Funded by HUD HOME and the Seattle Housing Levy through the Seattle Office of Housing. Often delivered via partner agencies (HomeSight, Habitat for Humanity Seattle, etc.). No monthly payment.
• loan due on sale, refinance with cash-out, transfer of title, or when home ceases to be primary residence (typically 30-year deferred).
• Funding comes from Federal, HUD, HOME, Local, and Seattle Housing Levy.

Do you have to pay it back?

Downpayment Assistance Program is forgiven after 30 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven over HUD HOME affordability period and full principal due on sale, refinance with cash-out, transfer of title, or when home ceases to be primary residence (typically 30-year deferred soft-second).
• 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?

Downpayment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Downpayment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income $84,320 (1 person) to $159,120 (8 person) per HUD HOME 80% AMI for King County / Seattle.
• 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?

Downpayment Assistance Program caps the purchase price as follows: Subject to HUD HOME maximum sales price for King County (existing/new); verify current limit with Office of Housing.

• Eligible property types include Single-family detached, condo, townhouse, 2-4 unit (with owner-occupancy).
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Downpayment Assistance Program 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?

Downpayment Assistance Program serves buyers purchasing in Seattle, Washington.

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

How do you apply?

Applications for Downpayment Assistance Program 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 HUD-approved homebuyer education — HomeSight, Urban League of Metropolitan Seattle, Solid Ground or eHome America 8-hour course.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply via Seattle Office of Housing partner agencies (HomeSight, Habitat for Humanity Seattle, etc.); subject to annual Office of Housing 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.