Information for Single-Family Lending and Real Estate Professionals
Program Announcement

June 13, 2019
Changes to Tacoma, Pierce County and ARCH Partnership Downpayment Assistance Programs

Dear Lending Partners:

Due to Fannie Mae's current Community Second program guidelines for deferred payment loans, the interest rate of the second mortgage must be no more than 75% of the rate of the first mortgage.

Example 1:
The interest rate on the Conventional 1st is 5.00% . 5% times 0.75 = 3.75%. Hence, any deferred-payment second mortgage could not have an interest rate greater than 3.75%.

Example 2:
The interest rate on the 2nd is 4.00% 4% divided by 0.75 = 5.333%. The Conventional first mortgage rate could not be lower than that, so it would have to be 5.375% or higher (since 1st rates price in 1/8ths).

If you are using a Home Advantage or House Key Conventional HFA Preferred first mortgage that does not meet the community second requirement the following downpayment assistance programs may not be eligible to be used:

Tacoma DPA

Pierce County DPA

ARCH-East King County DPA

We reached out to these jurisdictions for input and will keep you posted as we know more.

If you have additional questions, please email Corinna Obar


Home | About | CareersCommissioners | Contact UsEventsMy View Newsletter | Publications | Homeownership: Homebuyer Programs | Information for Lenders | Information for Real Estate Professionals | Information for Instructors | Multifamily Housing: 9% Housing Credit | Bond/Tax Credit | 80/20 Bonds | 501(c)(3) Housing BondsSpecial Programs: Energy | Farmer/Rancher | Nonprofit FacilitiesLand Acquisition Program | Property Managers: Asset Management and Compliance Information for Investors: Official Statements, Annual Reports, Interim Information |  Privacy Notice | Requests for Public Records
Washington State Housing Finance Commission 
1000 2nd Avenue, Suite 2700, Seattle, Washington 98104 | Phone: 206-464-7139 or 800-767-4663 | Fax: 206-587-5113 | Contact Us
©1998-2018 All Rights Reserved