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House Key State Bond Program--A Screamin'Deal

By
Real Estate Agent with John L. Scott Real Estate

Most everyone is usually on the lookout for good deals on homes and mortgage rates but most of the time once you look closely at all the details, there isn't really a lot to write home about.   Houses that are priced right can have a lot of off setting challenges with them and could be why they're seemly priced right, so is it really all that good a deal once you factor those issues in?  I'm not a lender but I imagine it's probably much the same thing with mortgage rates and products.

Logo of the House Key Loan Program

The House Key State Bond program is probably as close to the real deal in terms of a home buyer assistance program that I've seen in a long time.   Administered by the Washington State Housing Finance Commission, the House Key program provides opportunities for home ownership for low to middle income families.  Utilizing proceeds from the sale of municipal bonds, the WSHFC then purchases below market mortgages underwritten by participating lenders.  If you can believe it, the State of Washington is actually subsidizing below market interest rates for the public benefit. 

A Commission approved lender will qualify an applicant on a typical 30-year mortgage loan program using the Commission's lower interest rate. A single family home, town home, condominium, and in some instances, a manufactured home, can be financed with the House Key State Bond program to purchase Seattle real estate. All borrowers that will be listed on the mortgage note and Deed of Trust must attend a Homebuyer Education seminar that has been registered through the Commission. Classes are taught by certified instructors and the curriculum must meet standards set by the Commission.

Currently, the 30 fixed rate is 5.75% with one point. The bottom line is, on a purchase of a $300,000 home in the Seattle area, a borrower can save upwards of $400 a month using the State Bond program versus conventional 80/20 loan programs on comparable terms. Additional information on the benefits of using the House Key Loan Program, first-time home buyer definition and current rates.

How's that for a screamin' deal?

Comments (1)

Christopher & Bernadette Hurley
Go Hurley Group - Sugar Land, TX

Wow, that is a screamin' deal. Actually that is an increadibly screamin' deal. Great post!

Sugar Land, Tx
Where Life is Sweet

Jun 22, 2007 12:25 PM