Affordable housing
More than 12 million renters and homeowners now pay more than 50% of their income on housing, which means they’re severely cost burdened.
HUD estimates that a family with one full-time worker earning the minimum wage can’t afford the local fair market rent for a two-bedroom apartment anywhere in the country.
Homeownership rates are some of the lowest we’ve seen in 20 years.
Homeownership among minorities is far less than among Caucasians. U.S. average: 64.3%; non-Hispanic white: 72.9%; black: 41.6%; Hispanic (of any race): 46.6%; Asian, Native Hawaiian, and Pacific Islanders: 58%; other races: 55.7%.
Compared to average rental rates, lots of people will be better off buying a home rather than renting an apartment.
Wages aren’t keeping up with appreciation, even though appreciation has slowed.
The median-priced home is unaffordable for people with an average income in 75% of U.S. counties.
Families who pay more than 30% of their income for gross housing costs, including utilities, are considered “cost burdened” by the U.S. Department of Housing and Urban Development (HUD).
The Washington State Housing Finance Commission (WSHFC) offers a variety of buyer assistance programs.
House Key Opportunity gives first-time buyers with low or moderate incomes the chance at a mortgage with below-market interest rates and a corresponding program offers down payment assistance.
All buyers who want to use Washington buyer assistance programs must attend a homebuyer education seminar.
The Home Advantage program provides below-market rate mortgages to buyers seeking first mortgages. The property must be the buyer’s primary residence, and there are buyer income requirements for qualification.
SB 5254, which went into effect on October 19, 2017, is designed to improve the Growth Management Act’s buildable lands review process to ensure the adequacy of buildable lands and zoning in urban growth areas.
SB 5254 states that the purpose of the review and evaluation program shall, in part, be to “identify reasonable measures, other than adjusting urban growth areas, that will be taken to comply with the requirements of this chapter.”
SB 5254 modified the timelines and other factors in the review and evaluation program in the Growth Management Act (GMA)
SB 5254 includes an extension of a $40 surcharge through 2029.
The best rates go to those with the best credit, and when it comes to conventional financing, that usually means a score of 740 and up.
A credit score is a number that, to lenders, signifies credit risk. That number is calculated from information in the consumer’s credit file. Lenders use it to assess the consumer’s credit risk at a given moment in time.
Some consumers won’t have a FICO score if they’ve never applied for credit. To have a FICO score, consumers need at least one credit account that’s been open for a minimum of six months, and it must have been reported to the credit bureau.
To improve a credit score, buyers should pay bills on time, avoid going into collection, not close accounts or open new accounts just before applying for a loan, pay down total debt, and pay down balances on each credit card.
Some buyers think that once their loan is approved, their credit won’t be pulled again prior to closing. It will. Counsel buyers not to open or close accounts or put anything on layaway until after their transaction closes.
A co-signer (usually a family member) can assist with qualifying but must meet the lender’s qualifying standards.
Buyers who struggle with saving for a down payment should pay off debt, set up an automatic savings deposit, reduce rent costs, eliminate unnecessary expenses, and take on a second job or contract work for added income.
Low and no down payment options include FHA (3.5% down); conventional (as low as 3% down); VA (0% down); USDA (0% down).
Down payment grants are available when the borrower and the property meet certain criteria, which varies by program.
Credit bureaus will provide consumers with a free copy of their credit report annually. Buyers can obtain their free annual credit reports from AnnualCreditReport.com.
Property qualifying criteria for a down payment assistance program includes that it must be a primary residence; it's a single family detached home, townhome, condo, or (in some cases) small multi-family home; and it's under area price limits.
