Seattle Housing Trust Fund

What is Seattle Housing Trust Fund?

Seattle Housing Trust Fund is a deferred second loan for homebuyers in Seattle, Washington.

• HomeSight-administered Seattle Housing Trust Fund (Seattle Housing Levy / Office of Housing) shared-appreciation deferred-payment second mortgage for income-qualified first-time homebuyers purchasing in Seattle. Benefits from City Housing Levy property-tax revenue.
• City of Seattle Office of Housing / Housing Levy-funded purchase-assistance loan administered by HomeSight, providing deferred-payment shared-appreciation second mortgages to lower-income (typically <=80% AMI) first-time homebuyers purchasing within Seattle city limits. Loan amount need-based, typically up to $55,000.
• Funding comes from City of Seattle Office of Housing / Seattle Housing Levy / Housing Trust Fund.

Do you have to pay it back?

Seattle Housing Trust 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, 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?

Seattle Housing Trust Fund is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Seattle Housing Trust Fund limits household income to 80% of the area median income, which varies by county and household size.

• 80% HUD AMI for Seattle-Bellevue HMFA; approximately $77,700 (1-person) to $110,950 (8-person) per 2024 HUD.
• 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?

Seattle Housing Trust Fund caps the purchase price as follows: Per Seattle Housing Trust Fund / Office of Housing guidelines and first-mortgage product limits.

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

Is there eligibility for specific groups?

Seattle Housing Trust 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?

Seattle Housing Trust Fund serves buyers purchasing in Seattle, Washington.

How do you apply?

Applications for Seattle Housing Trust 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 counseling agencies.

2. 2

   Contact the administering agency to reserve funds

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