Home Advantage Downpayment Assistance - Needs Based Program

What is Home Advantage Downpayment Assistance - Needs Based Program?

Home Advantage Downpayment Assistance - Needs Based Program is a deferred second loan for homebuyers in Statewide, Washington.

• The Home Advantage Needs Based Program offers enhanced 5% / $10,000 DPA at 1% simple interest to lower-income borrowers (at or below 80% AMI by county) using a Home Advantage first mortgage. Designed for borrowers who need more than the standard 4% Home Advantage DPA but qualify under stricter income tests.
• Enhanced version of Home Advantage DPA for lower-income borrowers. Provides up to 5% of the first mortgage loan amount (up to $10,000) as a 1% simple interest deferred-payment second mortgage. Targeted at borrowers at or below 80% of area median income.
• income limits range from approximately $122,100 to $157,100 depending on county. No monthly payments.
• principal and accrued interest due at sale, refinance, transfer, or end of first mortgage. Must be paired with a WSHFC Home Advantage first mortgage.
• Funding comes from WSHFC Home Advantage program.

How much assistance does it provide?

Home Advantage Downpayment Assistance - Needs Based Program provides assistance worth 5% of the purchase price, as set by the program.

• Buyer contribution: No minimum borrower contribution.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Home Advantage Downpayment Assistance - Needs Based Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Due at sale, refinance, transfer of title, end of first mortgage term, or when property is no longer borrower's 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?

Home Advantage Downpayment Assistance - Needs Based Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

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

• Income limit equals 80% of area median income for the property's county; ranges approximately $122,100 to $157,100 depending on county and household size. Use WSHFC's income limits table at https://www.wshfc.org/buyers/income.htm.
• The limit applies to total household income, not only the borrower’s.
• 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?

Home Advantage Downpayment Assistance - Needs Based Program caps the purchase price as follows: No WSHFC-imposed sales price cap; subject to agency loan limits.

• Eligible property types include Single-family detached, townhomes, condos (agency-approved), PUDs and manufactured housing per agency guidelines.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Home Advantage Downpayment Assistance - Needs Based Program names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native buyers, educators, law enforcement officers, firefighters, healthcare workers, and buyers with disabilities 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?

Home Advantage Downpayment Assistance - Needs Based Program serves buyers purchasing in Statewide, Washington.

How do you apply?

Applications for Home Advantage Downpayment Assistance - Needs Based 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 WSHFC-sponsored Commission-Sponsored Homebuyer Education Seminar (5-hour course, free, online or in-person).

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Lender reserves via WSHFC online lender portal alongside Home Advantage first mortgage, 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.