Working with first-time homebuyers is one of my favorite real estate service areas. The joy for me comes from flattening the road of what can seem like a daunting journey from "can I even do this?" to "Wow, I'm a homeowner!" When the keys are finally given, there's a great sense of satisfaction, followed typically by a few months of phone calls seeking support for various issues from landscaping to circuit breakers to neighbor issues. I love being a resource to help build confidence in a new homeowner.
I bought my first home at the age of 35. I didn't do it sooner because buying a home felt so 'mature' and I didn't feel settled enough yet to put down what I thought would permanent roots. But once I had my own keys in hand, I understood what a great feeling it is. I could paint my dining room whatever color I wanted; could plant vegetables in the spring and know that I would still be there in the fall when it was time to harvest; could hang a picture on the wall without penalty... I could have pets without paying extra or gathering letters of recommendation. Such liberation! And yes, if it came time to move, I could sell the house and/or keep it as an investment property for a time. There are sound financial reasons that people invest in real estate, and becoming a homeowner has been one of the best decisions of my life.
But I also understand that it's daunting. Affording a monthly payment that is higher than your rent is scary. Saving for a downpayment is hard -- can you even save at the same rate that prices are going up? And the thought of 'competing' for a house just amps up the anxiety. But I've got you covered!
First of all, I know of a number of warm, friendly mortgage loan officers who can help answer initial questions about your eligibility, without pressure or obligation. If you're not ready, they can help advise on ways to get you ready. It's never too early to have that phonecall, to help you set savings and credit history goals. The lenders can explain why the ability to deduct your mortgage interest may turn that "higher" monthly payment into the equivalent of your monthly rent. They can also let you know just how much cash you need to have saved in order to make your purchase dreams come true. It may be less than you think! And as for competing, I've got tons of experience with that, and I'm a big believer in destiny. We will find you *your* house!
Fortunately, there are also some great First Time Homebuyer financing programs offered by the Washington State Housing Finance Commission. There are first mortgages, downpayment assistance programs, and special loans like Energy Spark to provide funds to make a home more energy efficient; HomeChoice for buyers with a disability or a disabled person living with them, and programs for veterans or folks searching in certain areas like Bellingham and East King County.
Perhaps the most exciting program is the Covenant Home Ownership program, which was established in 2023 "to help people become homeowners who have been impacted by state-sanctioned racial discrimination." If you have family history in Washington state prior to 1968 and meet certain other requirements, you may be eligible. This program even offers the potential for loan forgiveness for the downpayment assistance after 5 years.
The key to connecting with these programs is to talk with an experienced real estate agent (like me!) and an experienced, commission-approved lender (I can help you find one). We will work carefully with you to make sure you are preapproved before you fall in love with a property. Programs like these have some strict rules but when they work, they are amazing! And yes, you'll need to take a 5-hour commission-approved homebuyer education class. I am trained to teach these classes and can help you connect with one, on your timeline.
Last, there are also many community land trusts in Washington, like Homestead Community Land Trust. Land trusts help make permanent housing more affordable. In HCLT's words:
We build and rehab high-quality homes, and we raise funds to lower their price to what’s affordable for income-qualified households. Buyers purchase homes at prices typically below 50% of the market. Homestead retains ownership of the land beneath the homes and leases it to the homeowner through a 99-year renewable agreement. Homeowners agree to a resale formula that allows modest appreciation and ensures the home remains affordable to the next income-qualified buyer.
We have worked with these programs and seen firsthand what a great entry into the market it provides for folks who might otherwise believe that ownership is out of reach.
The bottom line is, it's not too early start exploring! Give me a call or send me an email so that we can begin to sort out your options and map out the path for making your dream of home ownership a reality.
