Programs available in Washington to assist first-time home buyer market

In 1983, during a previous bleak period in the economy, legislation was passed to create the Washington State Housing Finance Commission (WSHFC) to provide lower-than-market rates on loans for low to moderate income first-time home buyers. The state did this to provide more affordability and to stimulate the economy at a critical time. The following year, more than 3,000 first-time home buyers from communities across Washington took advantage of 30-year loans financed by the Commission and made through bankers around the state at 11.18 percent. This was a time when interest rates were at 20 percent.

Today, with interest rates at nearly a quarter of what they were in the early 80’s, and with home prices more affordable than they have been in five years, now is a great opportunity for first-time home buyers to take advantage of WSHFC’s education and financing programs to purchase and maintain a home.

The programs offered at the Commission are valuable because home buyers with minimal savings can receive down payment assistance to achieve homeownership with very little, if any, of their own funds.

Commission sponsored homebuyer education seminars are the first step in purchasing a home. Home buyers feel supported with the expertise of WSHFC-approved real estate and mortgage professionals who instruct the classes and guide the new buyers through the process.

One study shows that 46 percent of the people attending the seminars buy houses within six months.  

Nancy Hill, along with her Windermere associate Patty Worgan are WSHFC first-time home buyer education class instructors. They conduct classes every quarter at the YMCA in Newcastle with anywhere from 2-8 home buyers of all ages and experience.

HOW to get started;

1.     Watch a great video at www.WAhomeowners.com that will help explain the WSHFC programs. 

2.     Home buyers can attend a Housing Finance Commission Sponsored Home Buyer Education class; this 5-hour class is a a requirement for getting a loan from the Commission. Select a class to attend at www.wshfc.org or you can contact Nancy to attend her class on August 18, 2010.

3.    Get connected with a House Key trained loan officer, Keane Ng/Cobalt Mortgage, or any other trained loan officer listed at: http://www.wshfc.org/buyers/premier.htm

4.     Look into the House Key Loan Program for first mortgages for first-time home buyers; and, there are Second Mortgage Loans for Down Payment Assistance available through House Key Programs. There are also Second Mortgage House Key Programs for down payments for those with disabilities, for teachers, and veterans.

WATER! Not the word we wanted to hear while standing in a newly constructed home.  My buyer clients and I were visualizing where the flat screen would be placed for optimal viewing. Then the buyer’s home inspector popped his head out from the crawlspace access door and said the dreaded word “Water”…..which doused the enthusiasm of this unsuspecting buyer from head to toe.  

When buying a resale or newly constructed home a Buyer’s Realtor should be explaining the rights of the buyer to hire a home inspector.   In Washington, a home purchase can be contingent upon the buyer’s satisfaction of a home inspection only if a Form 35 (Inspection Addendum) is mutually agreed upon by both parties.   (Form 35 is a northwest multiple listing form)

In this particular case, my client had reached mutual acceptance (with Form 35 included) on a newly constructed home that had been sitting on the market for months during winter and early spring. In the Pacific Northwest, this means the “rainy seasons”.   I advised them to hire a home inspector to which they agreed.    The inspection was moving along very well until water was found in the crawlspace (see photo below). At that moment the $350 charge for this home inspection was justified.  

 Once the buyer’s home inspection is completed and the report provided for review it is recommended for the Buyer and their Realtor to have a meeting. At this meeting it will be determined if the buyer wants to proceed with the purchase based off of the inspection report. Sometimes, the items found by an inspector are so minimal (for example, a protruding nail in the siding) that removing the inspection contingency and proceeding toward closing is the right answer. If there are items that need to be addressed by the seller then negotiations may open back up.   There are times that an inspection finds major defects with a home and it is the best solution for the buyer to terminate the contract.

A Realtor’s experience and expertise is the key element to negotiating. Sometimes the repairs may require a request for seller to decrease the purchase price, seller to credit the buyer for repairs at closing, seller to repair said items or…or…or….there are a number of scenarios that can play out during the Inspection Response. Per the NWMLS a Form 35R (Inspection Response form) is used to address the inspection with the Seller.  Remember, everything must be agreed upon and signed by both sides of the transaction.

I called the builder’s listing agent and requested a Builder Meeting. Once we met with the builder and he had his team inspect the crawlspace it was determined that the builder would fix the issue immediately.   Based upon the builder’s explanation and agreement to repair the issue fully and with warranty the buyer decided to proceed toward closing. In simple terms, the builder will pump out all water, inspect for damage, replace the crawlspace with a new vapor barrier and allow buyer to re-inspect repairs. If water is to be found in the crawlspace at any time over the next 2 years the builder will install a sump pump with warranty to buyer’s satisfaction and inspection. 

This is called a win-win situation. The buyer is satisfied that their interest is protected and the builder is providing a solid and sound home at closing. 

Features: 4 Bedrooms, 2.5 baths, 2199 to 2539 SquFt
Lot Size: 4800-6170 SquFt
HOA: $20
Builder Warranty


See more pictures at: http://www.bestkingcountyrealestate.com/index.cfm/page/57015/parent/57005/FEATURED_Listings.html

Call for a private showing of these newly constructed homes!

Nancy Hill, CRS, SRS
Windermere
Phone: 253-653-6323
E-Mail: NancyHill@Windermere.com
Company Website: http://www.nancyhill.mywindermere.com/
Personal Website: http://www.BestKingCountyRealEstate.com
Laurel Crest Community Map:  http://www.loziergroup.com/page11911.asp

Nancy Hill is a new construction specialist with approximately 100 new construction sales experiences.  She is a co-listing agent for Lozier Group, assists buyer and sellers across King and Pierce Counties, provides educational sessions for fellow realtors and is actively involved in her community.