Our team offers FHA down payment assistance to eligible homebuyers anywhere in Washington. The assistance is a second mortgage that sits behind an FHA fixed-rate purchase loan, and you can put it toward your down payment, closing costs, prepaid items or a mix of them. Call our team at (206) 316-8453 to find out whether you qualify.
Below, our team explains how the two assistance options are set up and who can use them. Assistance is subject to program eligibility and funding availability, and terms can change or the program can be discontinued at any time, so your loan officer will confirm the current details for your purchase.
The Federal Housing Administration insures FHA loans. On most FHA purchases, the borrower must make a minimum investment based on the lower of the sales price or appraised value. FHA lets that money come from a few allowable places, such as your savings, an eligible gift, or eligible secondary financing from a governmental entity or nonprofit, as FHA rules allow.
Assistance programs usually take one of these forms:
Assistance does not remove FHA mortgage insurance, and you still have to qualify for the full payment on your FHA first mortgage.
The down payment assistance is offered through a third-party program. It is not provided, insured or endorsed by HUD, FHA or the Washington State Housing Finance Commission. FHA insures only the first mortgage.
The second mortgage is funded and serviced by a separate program provider, not CentralBanc Mortgage Corporation. Your loan documents will identify it.
Our team pairs the assistance with an FHA fixed-rate purchase loan. The assistance is recorded as a second mortgage, and both loans close together.
You can apply the assistance to your down payment, closing costs, prepaid items or any combination. When the assistance covers the cash needed under program and underwriting rules, you may not need to bring any funds of your own. You can also add your own money on top, and gifts or other eligible assistance can be layered in as long as this assistance stays in second position.
Our team offers FHA down payment assistance and can help you compare the forgivable and repayable options, estimate the cash you would need at closing, and pair the assistance with an FHA loan for your purchase.
Call our team at (206) 316-8453. We work with homebuyers statewide in Washington.
It supplies some or all of the cash you need for an FHA purchase, most often as a second loan recorded behind the FHA first mortgage. Depending on the program, that second loan may be forgivable, deferred or repayable, and some programs also allow the money to go toward closing costs.
Yes. Our team offers FHA down payment assistance for eligible Washington home purchases. Call us at (206) 316-8453 to review your options.
It is a second mortgage paired with an FHA fixed-rate purchase loan. You can choose a deferred and forgivable option or a repayable option, each sized based on the lower of the home's price or appraised value. The forgivable option can be forgiven, at your request, after 36 consecutive on-time payments on your FHA first mortgage. A late payment restarts the count, and refinancing the first mortgage during those first 36 payments permanently ends forgiveness. Until it is forgiven, the balance is a lien on your home. For the repayable option, the fixed interest rate is higher than your first mortgage rate. Your loan officer will review the interest rate, APR and payment terms with you. Income is not capped, prior homeowners can use it, and the funds can cover the down payment, closing costs or prepaid items.
It can. The forgivable option is sized based on the lower of the home's price or appraised value. Whether you also need some of your own money depends on your closing costs, the price and underwriting.
No. The assistance our team offers is open to prior homeowners.
The assistance our team offers has no income cap.
The forgivable option is deferred and forgivable; your loan officer will review the interest rate, APR and payment terms with you. The repayable option is a separate second loan; the fixed interest rate is higher than your first mortgage rate, and your loan officer will review the interest rate, APR and payment terms with you. Your Loan Estimate and Closing Disclosure will show how your loans are set up.
Second loans can come due if you sell, transfer the home, stop living in it or refinance before the program's conditions are met, and refinancing the first mortgage during those first 36 payments permanently ends forgiveness on the forgivable option. Your second-mortgage documents spell out the exact terms.
The down payment assistance is offered through a third-party program. It is not provided, insured or endorsed by HUD, FHA or the Washington State Housing Finance Commission. FHA insures only the first mortgage. The second mortgage is funded and serviced by a separate program provider, not CentralBanc Mortgage Corporation. Your loan documents will identify it.
Down payment assistance is subject to program eligibility and funding availability, and terms can change or the program can be discontinued at any time. Amounts, eligibility rules and forgiveness conditions are set by each program. This page is general information for Washington homebuyers and is not a commitment to lend or a guarantee of eligibility. All loans are subject to credit, income, property, occupancy and underwriting approval and to program rules.
CentralBanc Mortgage Corporation, NMLS #55244; Johnny W. Delaney, Jr., NMLS #1588947; Equal Housing Lender; licensed in Washington.