Pierce County Loan

What is Pierce County Loan?

Pierce County Loan is a deferred second loan for homebuyers in Pierce County, Washington.

• HomeSight-administered Pierce County loan funded by Pierce County HOME / Affordable Housing Trust Fund providing 0%-3% deferred-payment second mortgages to lower-income first-time buyers in Pierce County.
• Pierce County HOME / Affordable Housing Trust Fund DPA loan administered by HomeSight, providing up to $50,000 in deferred-payment second-mortgage assistance for low-income (<=80% AMI) first-time homebuyers purchasing in Pierce County (outside of Tacoma, Lakewood, Bonney Lake, Auburn, Pacific city limits in some sub-allocations).
• Funding comes from Pierce County HOME Investment Partnerships Program / Pierce County Affordable Housing Funds.

Do you have to pay it back?

Pierce County Loan 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, cash-out refi, term end, 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?

Pierce County Loan is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Pierce County Loan limits household income to 80% of the area median income, which varies by county and household size.

• 80% HUD AMI for Tacoma-Lakewood HMFA, adjusted for household size; approximately $64,800 (1-person) to $92,650 (8-person).
• The limit applies to total household income, not only the borrower&rsquo;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?

Pierce County Loan caps the purchase price as follows: Per Pierce County program guidelines and first-mortgage product limits.

• Eligible property types include SFR, townhome, condo, manufactured (real-property), 2-4 unit owner-occupied.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Pierce County Loan 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?

Pierce County Loan serves buyers purchasing in Pierce County, Washington.

How do you apply?

Applications for Pierce County Loan 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; Pierce County HUD-approved counseling agencies.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through HomeSight Homebuyer Portal; first-come, first-served subject to Pierce County 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.