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South King County Loan

King County, Washington

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See what you qualify forOfficial program site →
Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$632,000

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is South King County Loan?

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

  • HomeSight-administered South King County loan funded by King County HOME / South King County HOME Consortium, offering 3% deferred 30-year second-mortgage purchase assistance to <=80% AMI first-time buyers in Auburn, Federal Way, Tukwila, and unincorporated South King County.
  • South King County HOME-funded DPA loan administered by HomeSight providing up to $45,000 in 3% deferred 30-year second-mortgage assistance for <=80% AMI first-time homebuyers purchasing in Auburn, Federal Way, Tukwila, or unincorporated South King County.
  • Funding comes from King County HOME Investment Partnerships Program / South King County HOME Consortium.

Do you have to pay it back?

South King 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, end of 30-year term, 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?

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

The program requires

  • First-time homebuyer — with exceptions: Displaced homemakers, single parents, disaster-displaced (HOME 24 CFR 92.2)
  • The home is occupied as a primary residence
  • On credit: Minimum middle FICO 620
  • A completed homebuyer education course, through HomeSight Homebuyer Education; HUD-approved agencies; eHomeAmerica (hswa)
  • Residency: Owner-occupied primary; property in eligible South King County jurisdiction
  • Citizenship or immigration status: U.S. citizen or qualified alien per HOME rules
  • Property in Auburn, Federal Way, Tukwila, or unincorporated South King County. First-time homebuyer (no ownership last 3 years); HomeSight education + 1:1 counseling; minimum $1,000 buyer contribution; income at or below 80% Seattle-Bellevue HMFA AMI (~$77,700-$110,950); maximum purchase price $632,000.

The program excludes

  • Purchases above the $632,000 price cap
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

South King County Loan 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?

South King County Loan caps the purchase price at $632,000.

  • 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?

South King 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?

South King County Loan serves buyers purchasing in King County, Washington.

  • The program targets specific areas: Auburn, Federal Way, Tukwila, unincorporated South King County.

How do you apply?

Applications for South King County Loan go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HomeSight Homebuyer Education; HUD-approved agencies; eHomeAmerica (hswa).

  2. Contact the administering agency to reserve funds

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

  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.

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