Saving for a down payment in Snohomish County can feel like the biggest hurdle between you and homeownership. If you are looking at homes in Everett, Mukilteo, Lake Stevens, or nearby communities, you are not alone in wondering how to make the numbers work. The good news is that real, practical help exists. In this guide, you will learn how down payment assistance works here, which programs to explore, who typically qualifies, and the steps to apply with a participating lender. Let’s dive in.
What down payment assistance means
Down payment assistance, or DPA, helps you cover part or all of your down payment and sometimes your closing costs. Programs are designed for primary residences and usually target low to moderate income buyers.
Common forms include:
- Grant or gift: No repayment, but funds are limited and targeted.
- Deferred second mortgage: Often 0 percent interest with no monthly payment. You repay when you sell, refinance, or move out.
- Forgivable second mortgage: The balance is forgiven after a set number of years if you meet all terms.
- Repayable second mortgage: Less common and may carry interest.
Programs you can use in Snohomish County
Washington State Housing Finance Commission (WSHFC)
The Washington State Housing Finance Commission is the primary statewide source for DPA that local buyers use with FHA, VA, USDA, or conventional first mortgages. WSHFC programs are accessed through approved lenders and often provide a zero-interest, deferred second mortgage, along with required homebuyer education. For current program options, income and purchase price limits, and participating lenders, review the official Washington State Housing Finance Commission homebuyer programs.
County and city options
Some assistance is funded locally through federal programs such as CDBG or HOME and administered by county or city housing offices. Availability, amounts, and rules change often. Start with Snohomish County Housing & Community Services and then check the websites for cities like Everett, Lynnwood, Marysville, Edmonds, Monroe, and the City of Snohomish for any active buyer assistance.
Federal low or no down payment loans
- USDA Rural Development: Zero-down loans for income-eligible buyers in USDA-eligible areas. Some parts of Snohomish County may qualify based on the property location. See program details on USDA Rural Development.
- VA Home Loans: Eligible veterans and service members can purchase with no down payment and favorable terms. Learn more at VA home loan benefits.
- FHA Loans: FHA allows low down payments and permits approved DPA or properly documented gift funds. Review FHA guidance at HUD’s housing programs.
- Conventional 3 percent down: Fannie Mae HomeReady and Freddie Mac Home Possible offer low down payment options that can pair with state HFA assistance. Explore conventional options through Fannie Mae and Freddie Mac.
Nonprofit and employer programs
Some nonprofits and employers offer targeted support for local employees or income-qualified households. Funding is limited and often cycles. Ask your employer’s HR team and check local housing nonprofits to see whether assistance is available in Snohomish County.
Participating lenders and bank programs
Most state DPA must be used with an approved lender. Many banks and credit unions in Snohomish County participate. Always confirm lender participation and current program terms on the WSHFC website.
Who qualifies and what to expect
Eligibility depends on the specific program, but these are common themes:
- First-time buyer rules: Many programs define this as no ownership in the past three years. Some options may allow repeat buyers who meet income limits.
- Income and purchase price caps: Programs set limits to target low to moderate income households. Always verify current caps before shopping.
- Primary residence: DPA is for homes you will live in, not investment properties.
- Property types: Single-family homes and many condos are often eligible, but some condo projects and manufactured homes have extra rules. Have your lender verify.
- Homebuyer education: Many programs require a class before closing, either online or in person.
How to apply in Snohomish County
Follow these steps to streamline your path to assistance:
- Get preapproved with a participating lender. Ask them to screen you for WSHFC and any local city or county DPA.
- Complete the required homebuyer education. You can locate HUD-approved counseling resources through the HUD counseling directory.
- Choose your first mortgage. Your lender will help you compare FHA, VA, USDA, and conventional options and confirm which DPA can pair with each loan.
- Reserve funds and submit documents. Expect to provide income, asset, and ID documents, your purchase contract, and any program affidavits.
- Close on your home. DPA funds are typically disbursed at closing through the escrow process.
Pros and tradeoffs
Benefits
- Reduces or eliminates your out-of-pocket down payment.
- Often no monthly payment on a deferred second mortgage.
- Can combine with low down payment loans to help you buy sooner.
Considerations
- A second mortgage is usually due when you sell, refinance, or move out.
- Some programs include use or resale restrictions.
- Income and price caps can limit what you can buy in competitive neighborhoods.
- Extra paperwork and lead time may be needed to reserve funds.
Common mistakes to avoid
- Assuming any lender can offer state or local DPA. You must use a participating lender.
- Overlooking condo or manufactured home eligibility rules. Ask your lender to confirm.
- Shopping without checking current income and purchase price limits. These change and are program-specific.
- Using gift funds without proper documentation. Follow your lender’s instructions to the letter.
Will DPA affect refinancing or selling later?
Most deferred DPA is a second lien that becomes due when you sell or refinance. This can reduce your net proceeds at sale or affect your refinance options. Ask your lender to explain how your specific program treats refinancing, early payoff, and occupancy.
You can often use seller credits or gift funds alongside DPA, as long as you stay within program and loan guidelines. Conventional loans may have seller concession limits, and all programs require clear documentation. Your lender will confirm what is allowed for your situation.
Local tips for Snohomish County buyers
- Start early. Education certificates and DPA reservations can take time.
- Be flexible on location and property type. Expanding your search to more neighborhoods may help you stay within program price limits.
- Confirm HOA and property conditions. Some programs have minimum property standards that apply to condos and manufactured homes.
- Keep backup options. If one source of assistance runs out of funds, your lender can pivot to another.
Next steps and trusted resources
- Review statewide options and lender lists with the Washington State Housing Finance Commission.
- Check local program updates at Snohomish County Housing & Community Services.
- Explore zero-down eligibility with USDA Rural Development.
- Learn about VA benefits at VA home loans.
- Read FHA and DPA guidance through HUD’s housing programs.
- Compare conventional low down payment paths on Fannie Mae and Freddie Mac.
If you want personal guidance on neighborhoods, property options, and how to align assistance with your budget, reach out to Kelli Leese. You will get a friendly, step-by-step plan tailored to buying in Snohomish County.
FAQs
What is down payment assistance in Snohomish County?
- DPA helps cover your down payment and sometimes closing costs through grants or second mortgages, typically for primary residences and income-eligible buyers.
Who qualifies for DPA and what are the limits?
- Most programs set income and purchase price caps and may require first-time buyer status; confirm current limits on the WSHFC website or local program pages.
Do I have to repay down payment assistance?
- Many programs use a deferred second mortgage you repay when you sell, refinance, or move out; some are forgivable over time, depending on the program.
Can I combine DPA with FHA, VA, USDA, or conventional loans?
- Yes, many buyers pair DPA with FHA or conventional loans, and some pair with USDA or VA when eligible; your lender will confirm compatible options.
Are condos and manufactured homes eligible for DPA?
- Often yes, but programs may have extra rules for condo projects and manufactured homes; have your lender verify property eligibility early.
How long does DPA approval take and when are funds available?
- Education and preapproval can take 1 to 4 weeks, and DPA reservations may take several days to a few weeks; funds are usually provided at closing.
How do I find a participating lender for WSHFC assistance?
- Check the list of approved lenders on the WSHFC homebuyer programs page and ask each lender about current DPA options and timelines.
