HomeSight City of Seattle Puget Sound Revolving Loan Fund

What is HomeSight City of Seattle Puget Sound Revolving Loan Fund?

HomeSight City of Seattle Puget Sound Revolving Loan Fund is a deferred second loan for homebuyers in Seattle, Washington.

• HomeSight's City of Seattle Puget Sound Revolving Loan Fund (PSRLF) is a HomeSight-originated second-mortgage purchase-assistance product carved out of HomeSight's Puget Sound Revolving Loan Fund and dedicated to Seattle homebuyers. Loans are sized to fill gap between first-mortgage proceeds, buyer funds, and purchase price plus closing.
• Up to $70,000 in down-payment / closing-cost / gap financing for income-eligible first-time homebuyers purchasing in the City of Seattle. Structured as a fully amortized or partially deferred second mortgage at 1.5%-2.0% over the first-mortgage rate (depending on AMI). Funded through HomeSight's Puget Sound Revolving Loan Fund (a blend of City of Seattle Office of Housing, foundation, and CDFI capital) earmarked for City of Seattle borrowers.
• Funding comes from HomeSight Puget Sound Revolving Loan Fund (City of Seattle Office of Housing, Seattle Foundation, JPMorgan Chase, US Treasury CDFI Fund, private foundation capital).

Do you have to pay it back?

HomeSight City of Seattle Puget Sound Revolving Loan Fund is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Sale, transfer, refinance with cash-out, end of loan term, or loss of owner-occupancy.
• 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?

HomeSight City of Seattle Puget Sound Revolving Loan Fund is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

HomeSight City of Seattle Puget Sound Revolving Loan Fund limits household income to 120% of the area median income, which varies by county and household size.

• Income limits set at 120% of HUD Area Median Income for Seattle-Bellevue HMFA, adjusted for household size. 2024 limits roughly $126,600 (1-person) to $180,850 (8-person). Updated annually.
• 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?

HomeSight City of Seattle Puget Sound Revolving Loan Fund caps the purchase price as follows: Property purchase price tied to maximum first-mortgage and HomeSight underwriting; no fixed cap published for the Seattle PSRLF tier.

• Eligible property types include Single-family detached, townhomes, condominiums (warrantable), 2-4 unit properties (owner-occupied).
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

HomeSight City of Seattle Puget Sound Revolving Loan Fund 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?

HomeSight City of Seattle Puget Sound Revolving Loan Fund serves buyers purchasing in Seattle, Washington.

How do you apply?

Applications for HomeSight City of Seattle Puget Sound Revolving Loan Fund 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 HomeSight Homebuyer Education (HUD-approved); also accepts other HUD-approved counseling agencies, eHomeAmerica online (hswa).

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application through HomeSight Homebuyer Portal; first-come, first-served subject to fund availability, 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.