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$50,000* for first-time homebuyers in Federal Way
A down payment assistance second mortgage program is for people buying foreclosed, bank-owned or abandoned homes in 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.
These homes fall with certain boundaries. The area parameters are west of I-5, South of 288th Street and North of 348th Street, with Dash Point Road running as a northwest barrier to 320th Street, then back to 1st Avenue and south to 348th Street again (also including the Brigadoon neighborhood).
If a foreclosed or bank-owned home is available for sale, and you meet the income limits, and are a first-time buyer, you may qualify for up to $50,000 in down payment assistance. The down payment assistance can not exceed 20 percent of the purchase price of the home. Plus: Zero percent interest, zero payments and deferred for 15 years. If you continue to live in the home after 15 years, the down payment is forgiven. If you sell prior to this, you will be required to repay. A five-hour class is required prior to the purchase, and normal loan qualifications apply.
Lisa Cooke Tinsley is an associate broker with Windermere Real Estate/South: (253) 332-8220.