Who we are
Carey Armstrong is Tomo Mortgage’s Seattle real estate expert with the acclaim of being Seattle’s most active open house visitor. Her day job as Tomo Mortgage’s co-founder and chief operating officer influences her strong point of view about Seattle housing policy, prices and direction as well. We promise to pull no punches and tell it like we see it, even if that convinces you not to buy a house.
Summary
Washington State is one of the most expensive places to buy a home, and for first-time homebuyers the prospect can be daunting. But don’t fret, there are many resources available to help, from education and counseling to down payment assistance to subsidized mortgage programs and even subsidized properties. City, state and federal government believe that home ownership is good for our communities so they invest millions of dollars in these programs.
There are many loan options which can help lower down payment requirements – read on to get the scoop.
First time home buyers typically start with a 3 bedroom home, so we pulled average prices and link you to examples in five great Washington State cities.
3 Bedroom Homes, Prices & Listings
| City | Median Sale Price | Number of Listing |
| Seattle | $878,000 | 200 listings |
| Bellingham | $630,000 | 37 listings |
| Tacoma | $449,000 | 129 listings |
| Olympia | $519,000 | 84 listings |
| Bellevue | $1,200,000 | 18 listings |
This article will answer the following questions:
- Where can I find education for first-time home buyers in Washington?
- What down payment assistance programs are there for first-time home buyers in Washington?
- Are there loan programs for first-time home buyers in Washington?
- What subsidized housing exists for first-time home buyers in Washington?
Homebuyer education and counseling programs
Getting oriented to the prospect of purchasing and owning a home is the first step, and many community organizations are ready and willing to help. Check out the first-time homebuyer seminars – which may be requirements for participation in other types of assistance — offered by some of these organizations.
- The Washington State Housing Finance Commission (WSHFC) offers free virtual and in-person home buying seminars.
- HomeSight offers free virtual homebuyer education.
- El Centro de la Raza offers homebuyer education classes the first Saturday of the month every three months.
- eHome America also offers virtual homebuyer education classes for $50.
Down-payment assistance
Have you heard that you need a 20% down payment to buy a home? That’s absolutely false. Conventional loans can go as low as a 3% down payment, and others like VA and USDA loans require no down payment at all. But the cost of a low down payment is a higher monthly payment. See how this works.
If you’re hoping to get help pulling together a down payment, there are numerous programs available for Washington state homebuyers. They are generally meant for first-time homebuyers whose income is below 80% of the area median income (AMI) and who are purchasing a primary residence.
- WSHFC offers down payment assistance programs to homebuyers who are using one of its mortgage loan programs. These aren’t grants but are rather second mortgages of on average $10,000 with interest rates between 0 and 4%.
- Community Frameworks offers down payment assistance of up to 20% in Kitsap County as well as Spokane.
- Parkview Services offers down payment assistance for low- to moderate-income first-time homebuyers with intellectual disabilities and the family members who live with them.
- The HOME Program offers up to $10,000 in down payment assistance to qualifying homebuyers in Kennewick, Richland, or Pasco Washington.
- Habitat for Humanity in Seattle (and also in other parts of Washington) allows homebuyers to invest labor instead of dollars into their first homes.
- Housing Hope in Snohomish County also allows buyers to contribute sweat equity instead of a down payment.
Subsidized mortgage programs
These mortgage programs may have lower rates, have lower payments via waived mortgage insurance requirements, or may have lower down payment requirements. Some of these programs are for all first-time home buyers, some are for less affluent buyers in general, and some are for both.
- Fannie 97, Freddie HomeOne, Fannie HomeReady, and Freddie HomePossible. Fannie 97 and Freddie HomeOne support down payments as low as 3% or even lower with secondary liens for first-time home buyers. And the Fannie HomeReady and Freddie HomePossible support similar down payments even for repeat buyers so long as income is below 80% of area median income.
- FHA loans. FHA loans are another option for low down payment requirements (minimum 3.5%), and they also have a lower bar for credit scores too (580).
- VA loans for those with military affiliation, NADL loans for Native Americans with military affiliation, and USDA loans for homebuyers in rural areas even support 0% down payments, and the NADL and the USDA’s Section 205 Direct Loan Program for low-income buyers also have rock bottom interest rates.
- Renovation loans allow buyers to get a loan to buy a property bundled with a loan to improve it through renovations – allowing them to buy fixer uppers that might need some improvement to meet their needs.
You can learn more about these mortgage products through our sister company Tomo Mortgage.
Subsidized properties
Affordable housing developers tap federal funds, local housing levy funds, and charitable funds to subsidize the development of specific properties. Some to check out include:
- The HUD Good Neighbor Next Door Program enables essential workers to buy homes in their communities for up to 50% off of the list price in exchange for committing to living it as their primary residence for at least 36 months.
- Developers like HomeSight create affordable cooperative living like the apartments in the Othello project, which features 2 and 3br units in Seattle for less than $100,000.
- Community land trusts like Homestead in Seattle, Kulshan Community Land Trust in Bellingham, and other members of the Northwest Community Land Trusts Coalition convey title to the property along with a long-term lease on the land beneath it, usually along with significant subsidies.
- Co-op developers like Frolic mix individual living spaces with more substantial shared amenities than most – for example, shared guest quarters and dining spaces.
Owning a home is the principal path which most Americans build their wealth and community through. These programs offer the insight and assistance to make this a reality for many more people. At Tomo Mortgage we have a licensed team of loan advisors who can help you dig into the best program for you.
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