Many DPA's Are Out Of Funds...

As your First Time Homebuyers face the dreaded Nov 30th $8,000 First Time Homebuyer Tax Credit cut-off date, and they are frantically out there shopping for homes, many of the down payment assistance programs are running out of funds.  You may have a preapproval letter in your hand from a lender, but if the source of down payment they were relying on isn't there anymore - you may be in for a rude surprise!

If your buyer is planning on using a DPA, it would be really smart to stay in contact with the lender to make sure that funding is still available.  I do most of my business in and around Pierce & King Counties, so here is a quick update on what's happening in this area. 

• Pierce County Down Payment Assistance:  This has been such a popular program that they have recently run out of money and suspended the program indefinitely.  I've heard rumors that they may be getting more funding sometime in Sept, but that is only a rumor at this point.
• City of Tacoma Down Payment Assistance:  They are also running low on funding right now, so they have lowered the subsidy amount.  Instead of getting 6% of the purchase price through them, you can only get a maximum of 3.5% of the purchase price.  
• House Key King County & House Key Seattle:  Both of these programs have run out of funding and are no longer listed on the www.WSHFC.org website.

What's Left?  Many of the House Key programs are still available.  There is always the House Key Plus program (you can check the website for details on income limits per county).  This program is available anywhere in Washington.  So as long as your borrower's income does not exceed the county limit, they can buy a home with little or no cash to close.

The House Key Rural has been an excellent option for many borrowers.  In Pierce County, eligible areas include anything outside the city limits of Tacoma and Puyallup.  Check the income limits because they are a lot less than House Key Plus, but this program has a lower interest rate AND does not require a monthly payment, making it far more affordable than House Key Plus.

USDA Rural Housing is an option for properties farther out - but be aware that their turn times for file review is about a month right now (they review AFTER all the rest of the underwriting is done - making this about a 2 month closing situation).  You do NOT need to be a first time homebuyer with this program, but if you're trying to close before the Nov 30^th $8,000 FTHB IRS Tax Credit date - this may not be a good option right now as time is running short.

VA is still an awesome option - zero down programs, great rates, fast closings.  If you have VA eligibility - you are in really good shape right now.

The purchase market is very active right now.  I've been super busy all summer - thank you all very much for sending me your business.  Our underwriting times are great right now too - we can close quickly - and rates are still terrific!  Call me with your scenarios and I'll help you find the best options for you and your clients.