In order to ensure that our program benefits low- and moderate-income first time homebuyers, our board has established these program guidelines.
- 1st Time Buyer (not owned a home in the last three years)
- Income below that required by the funding being used for the transaction (Typically, 80% AMI)
- All judgements / collections are paid in full
- No bankruptcies in the past two years
- Sufficient income to qualify for a 1st mortgage loan hat tis large enough to get within $40,000 - $60,000 of sale price using lenders and City of Tacoma's, Pierce County affordable housing underwriting requirements. HCNW will make up the remaining mortgage shortfall with a no-interest, no monthly payment, second mortgage which is not due for 30 years.
- Must attend the Washington State Housing Finance Commission's approved 5-hour homebuyer education class.
- Buyer pays $1,000 down payment
- Buyer pays 1st year's homeowner's insurance (usually around $600)
- Remaining closing costs after the down payment and payment of first year's homeowners' insurance is paid for by a third mortgage which is forgiven at the rate of 20% per year.
- Must live in the home as a principal residence - no renting allowed.
- Refinance of 1st mortgage allowed only to reduce the term and/or rate - no cash out allowed without paying off any outstanding second and/or third mortgages.