Homeownership Programs

House Key Federal Way Program

A down payment assistance second mortgage program for people buying foreclosed, bank-owned or abandoned homes, in the City of Federal Way.

The intent of this program is to help neighborhoods in Federal Way that have been impacted by high foreclosure rates. These funds were made available to the City of Federal Way, as part of the federal Neighborhood Stabilization Program.

Down Payment Assistance Loan Program

House Key Federal Way combines with the House Key State Bond first mortgage loan program. This program is for people buying a foreclosed, bank-owned or abandoned home or condominium within census tracts: 300.02, 302.01, 302.02, 303.03, and 303.11 in the Federal Way City Limits. See map (PDF)

How does the program work?

You must be able to qualify for the House Key State Bond 30-year, first mortgage loan program.

House Key Federal Way allows up to $50,000 in down payment assistance, with no payments, at 0% interest, on a 15 year term. The House Key Federal Way down payment assistance loan is forgiven in full, at end of 15 years but a loan payoff is not pro-rated prior to the 15 year period.

You must be a first-time homebuyer and the home you are purchasing must be your principal residence and owner-occupied. The definition of a first-time homebuyer is that you have not owned a home anytime in the past three years. The property must be discounted by the seller by at least 1% from the value established by an appraisal that has been completed within 60 days of the final offer.

You must attend a FREE Homebuyer Education Seminar sponsored by the Washington State Housing Finance Commission and a one-on-one pre-purchase counseling session with a Commission approved service provider. The seminar and counseling will provide you with the information you will need to purchase and maintain your first home.

Maximum Income Limits

To be eligible for House Key Federal Way your household income must not exceed these limits:
1 person $29,500 | 2 person $33,700 | 3 person $37,950 | 4 person $42,150
5 person $45,500 | 6 person $48,900 | 7 person $52,250 | 8 person $55,650

Borrowers must attend a Commission-sponsored homebuyer seminar prior to reserving funds under the House Key Program. Cash back to borrowers is not allowed. The down payment assistance may not exceed twenty percent (20%) of the total purchase price of the property.

How are funds used?

Funds may be used for down payment and closing costs based upon need. The Borrower’s down payment requirement is 1% of the purchase price or $1000, whichever is greater. Up to ½ of the 1% can be from gift funds.

How much can you borrow?

Eligible households may qualify for a maximum loan amount of up to $50,000.

A House Key participating loan officer can help you determine an acquisition price you can afford, how much cash you will need to close, and how much you can borrow on a House Key Federal Way loan.

Who are the Participating Lenders in House Key Federal Way?

See House Key Participating Lenders who have been helpful to first-time homebuyers.

Questions about the House Key Federal Way Program? Please call Karen Carlson at 206.287.4413 or toll free in WA 800.767.4663, Ext. 413, or email karen.carlson@wshfc.org

This page was modified on 12/03/2009.