The Home Advantage Program is a great alternative to the Washington State USDA Zero Down Program. A Home Advantage Mortgage offers down payment assistance for Snohomish County home buyers.
Home Advantage is a program that is offered through the Washington State Housing and Finance Commission. A Home Advantage Mortgage is typically combined with a Home Advantage second mortgage that can help finance closing costs and/or a down payment.
There are a lot of misconceptions surrounding the Home Advantage Program as it is a relatively new home financing option, so I am going to highlight a few of the main features and then below, address some of the top questions regarding the Home Advantage Program.
Home Advantage Qualifying Criteria
– borrower must have a 620 credit score or higher
– total household income cannot exceed $97,000 annually
– borrower must complete a home buyer education class (See Dan for more info)
– borrower must use a Home Advantage approved lender (Dan Keller is an approved lender)
– borrower may only use a Home Advantage Mortgage for an owner-occupied purchase
Home Advantage Program Guidelines
– borrower can use up to 4% of the purchase price toward down payment or closing costs
– borrower may purchase condo, SFR, or manufactured home (Fannie Mae guidelines apply)
– borrower’s reserves (assets) not to exceed 4 months PITI after closing
– borrower’s debt-to-income ratio not to exceed 45%
It’s Questions and Answers Time
(Some of the top questions and answers surrounding a Home Advantage Mortgage)
What is the interest rate for a Home Advantage Mortgage?
The Washington State Housing and Finance Commission sets the mortgage rate. You cannot negotiate or shop rate.
If I borrower 4% toward down payment or closing costs, how is the repayment factored in to my payment?
Let’s say you buy a $300,000 home, and you use the full 4% ($12,000) toward your down payment, your payment on the $12,000 down payment assistance through Home Advantage is $0/month. It is a 0% interest loan and is deferred for 30 years. When you sell, refi or if your home becomes a rental (you no longer occupy the home), it will be called due.
Can you finance a manufactured home with Home Advantage?
Yes, you can finance a manufactured home if the first mortgage is an FHA, VA, or USDA Rural Development Loan. You cannot finance a manufactured home using any Fannie Mae Conventional financing option. The borrowers must have a minimum 620 credit score.
Can you have a non-occupying co-signer and still use a Home Advantage Mortgage?
Yes, with FHA, you may have a non-occupying co-borrower.
What if my credit score is under 620?
Often times, my clients come to me with less than great credit. That is why I’ve learned how to repair credit and in severe cases, I have a fantastic credit consulting company I refer. If you think you may be credit challenged, visit this article that I wrote, this will help you out – CREDIT REPAIR TIPS FOR HOME BUYERS
How do I apply for a Home Advantage Mortgage?
I’ve made is real easy. Go to this link – Home Advantage Online Application Form, and follow steps one and two. Make sure that you watch the short video at the top of the page AND preview my Mortgage Concierge Packet in step two (you will be glad you did!).
Lastly – take a quick moment and watch this short Rent vs Own video report that I made for you –
Renting or Buying with USDA or the Home Advantage Program
There are many other questions that may surface. Please do not ever hesitate to contact me directly at (425) 350-7136 (text w/ this # is awesome too), or email me directly at firstname.lastname@example.org. I am here to help!
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