Puget Sound Revolving Loan Fund

What is Puget Sound Revolving Loan Fund?

Puget Sound Revolving Loan Fund is a deferred second loan for homebuyers in King|Snohomish|Pierce County, Washington.

• HomeSight Puget Sound Revolving Loan Fund (PSRLF) is HomeSight's umbrella revolving fund providing tiered-rate second-mortgage purchase assistance to first-time homebuyers in King, Snohomish, and Pierce counties.
• HomeSight's flagship Puget Sound Revolving Loan Fund providing up to $70,000 in second-mortgage purchase assistance for first-time homebuyers across the Puget Sound region (King, Snohomish, Pierce counties). Tiered interest 1.5%-2.0% above first-mortgage rate.
• Funding comes from HomeSight PSRLF (CDFI Fund, JPMorgan Chase, Seattle Foundation, City of Seattle OH, private foundations, recycled program income).

Do you have to pay it back?

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, 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?

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?

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

• 120% HUD AMI for Seattle-Bellevue HMFA; approximately $126,600 (1-person) to $180,850 (8-person) per 2024 HUD.
• 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?

Puget Sound Revolving Loan Fund caps the purchase price as follows: Per first-mortgage product limits and HomeSight underwriting.

• Eligible property types include SFR, townhome, warrantable condo, 2-4 unit owner-occupied.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

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?

Puget Sound Revolving Loan Fund serves buyers purchasing in King|Snohomish|Pierce County, Washington.

• The program targets specific areas: Black Home Initiative target area: South Seattle, South King County, North Pierce County.

How do you apply?

Applications for 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 agencies; eHomeAmerica (hswa).

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through HomeSight Homebuyer Portal, 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.