Wondering how to buy a house without a huge savings account? Down payment assistance covers your upfront costs in Washington through deferred loans or grants.
Down payment assistance is a program that helps homebuyers cover the upfront costs of purchasing a house, like the down payment and closing costs. It usually comes from a state or local organization in the form of a grant, a low-interest loan, or a zero-interest deferred loan, so you don’t need a massive amount of cash saved up to buy a home.
How Does Down Payment Assistance Actually Work?
It typically functions as a “silent second” mortgage that sits right behind your main home loan. This covers your upfront costs without adding anything to your monthly mortgage payment. When we help buyers use these programs, the assistance funds are wired directly to the closing table. You don’t make monthly payments on this secondary loan. Instead, you simply pay it back later when you eventually sell the home, refinance, or pay off your primary mortgage.
Do You Have to Be a First-Time Homebuyer?
No, you don’t always have to be a first-time homebuyer to qualify for down payment assistance. While many programs are heavily geared toward first-time buyers, there are still options available if you’ve owned a home before. The biggest deciding factors are usually your current household income, your credit score, and the price of the home you want to buy.
Down Payment Assistance in Washington State
In Washington, our primary down payment assistance comes through the Washington State Housing Finance Commission (WSHFC), which offers programs specifically for buyers in places like Spokane. To qualify for a WSHFC program, you generally need to meet specific income limits for Spokane County and take a free, state-sponsored homebuyer education class [LINK: Homebuyer Education Class Info]. Some of these local programs can provide up to $15,000 to help you get into a home.
Have more questions about down payment assistance? Visit spokanehomeguy.com or call 509-990-SOLD (7653) — we’re happy to walk you through it.
FAQ: Down Payment Assistance in Spokane
Most down payment assistance programs through the Washington State Housing Finance Commission require a minimum credit score of 620. However, having a higher score can sometimes give you access to better interest rates on your primary mortgage, so it’s always smart to talk to a local lender first. Check out our buying process guide.
In most cases, yes, you do have to pay it back. In Washington, it is usually structured as a deferred second mortgage. You won’t make monthly payments on it, but the balance is due when you sell the house, refinance your loan, or pay off your first mortgage.
Usually, these programs are designed strictly for single-family, primary residences. If you are looking to buy a duplex or multi-family property in Spokane, the rules get much stricter, and many standard assistance programs won’t apply. You must intend to live in the home as your primary residence.
