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For many, buying a home feels out of reach. High prices, down payments, closing costs, and insurance requirements can make it seem impossible—especially if you don’t have a lot of cash on hand. But the reality is, there are many programs designed to help make homeownership possible.
At First Fed, mortgage loan officers Tiffany Bergsma-Evans, Julie Myers, and Terri Wood specialize in helping homebuyers navigate these programs to find the best financing options.
Breaking the 20% Down Payment Myth
One common misconception is that you need a 20% down payment to buy a home. In Washington, where in many areas the median home price is around $700,000, that would mean saving $150,000—an amount that puts homeownership out of reach for many.
Fortunately, there are programs that require as little as 3% down for first-time buyers and 5% down for others. If coming up with even that amount is challenging, Down Payment Assistance (DPA) programs—such as those offered by the Washington State Housing Finance Commission (WSHFC) or the Federal Home Loan Bank—can help cover down payments and closing costs.
“There are many great programs available to help buyers, but sorting through all the options can be overwhelming,” says Bergsma-Evans. “That’s where a mortgage loan officer comes in—to guide you through the process and find the best fit for your needs.”
Who Qualifies as a First-Time Homebuyer?
Many people don’t realize they may still qualify as a first-time homebuyer, even if they’ve owned a home in the past.
“There are some surprising ways to qualify as a first-time homebuyer,” says Myers. “For example, if you haven’t owned a home in the last three years, you may still be eligible. Even if you previously co-owned a home with your spouse, you can qualify again after a divorce, especially if you have children.”
Even if you don’t qualify as a first-time homebuyer, there are numerous programs available to assist with purchasing a home.
“There are even loan programs that require zero down payment when you meet their qualifications, such as USDA and VA loans,” explains Wood. “Because there is such a variety of programs, a good conversation with your loan officer can help you discover which loan programs you may qualify for.
Addressing Past Housing Discrimination
Unfortunately, Washington State has a history of racial discrimination in housing. In the past, some neighborhoods had racially restrictive covenants that limited who could buy homes. The effects of these policies are still seen today in homeownership rates.
Homeownership rates among historically marginalized communities remain significantly lower due to past discriminatory practices. The Covenant Homeownership Program aims to close this gap by promoting more equitable access to homeownership.
As part of these efforts, the Washington Covenant Homeownership Program provides Down Payment Assistance for eligible buyers. To qualify, you must:
Eligible buyers can receive up to 20% of the purchase price (up to $150,000) as a second mortgage with no interest or payments until they sell or refinance.
Finding the Right Resources
The WSHFC website offers valuable tools, including interest rate information, homebuyer education courses, and details on available programs. However, with so many options, having an experienced mortgage expert can make all the difference.
The team at First Fed is passionate about helping people achieve homeownership. They work closely with buyers to find the best mortgage options and guide them through the process.
“Part of the joy we get from this job is helping people into their first home,” says Bergsma-Evans. “There’s an overwhelming feeling of, ‘I can’t believe that just happened!’ when people achieve their dreams. It is just so satisfying.”
First Fed is a member FDIC and equal housing lender.
