Pre-Purchase Homeownership FAQs
Down payment assistance funds are loans to help bridge the affordability gap when purchasing a home. In many instances, individuals or families can qualify for more than one source of down payment assistance. Some of those loans may convert to grants after a certain period of time. For example, based on your income and savings you qualify for a $250,000 loan from an approved lender. Say, you would like to purchase a home in in the Renton area. There are very few homes in Renton that are selling for that price or less. You find that you are eligible for $90,000 in down payment assistance loans and grants. Now you have increased your purchasing power to $340,000. There are several homes for sale in Renton for $340,000. The down payment assistance has made homeownership possible for you by bridging the affordability gap.
Parkview Services’ down payment assistance program specifically caters to low to moderate income families & individuals with a permanent disability as defined by the Americans with Disabilities Act of 1990 and/or individuals with Intellectual and Developmental Disabilities. Additionally, you must be a first time homebuyer or a displaced homemaker to qualify.
Parkview Services’ down payment assistance is a loan, not a grant. There are no payments on this loan for 30 years or until you sell the home, no longer live in the home, or refinance the first mortgage.
Funding for Parkview Services’ Homeownership program comes in the form of federal, state and local government grants as well as grants from private funders.
The down payment assistance awarded to an individual or family is based on need. Over the last 11 years the lowest down payment assistance funding we provided was $16,500 and the highest was $82,500.
One downside is that you may not be able to get a home equity line of credit (HELOC). Most lenders will only provide a home equity line of credit if they can be in second position, subordinate only to the first mortgage. With down payment assistance, the lender would have to agree to be in third, fourth, or possible fifth position.
Your application will not be processed until we have received all requested documentation along with your application. Once we have all of your documents and forms you will be scheduled to meet with the Pre- Purchase Manager and at that time an action plan will be established.
You only pay for the credit report that we will have to order unless you qualify for a fee waiver based on our income guidelines. Please see our 2019 Fee Schedule for more information. 2019 Credit check fees are $17.06 for an individual report and $34.17 for a joint report.
Yes. Having acceptable credit or working on establishing acceptable credit is very important, especially when considering the biggest purchase of your life. Parkview Services does not have a specific FICO score requirement because we are not a first mortgage lender. If you can get a first mortgage approved, that generally means that your credit is healthy enough to qualify for additional financing/loans. The only credit related requirement we have is that you don’t have any late payments in the last 12 months.
No, we will not accept a credit report from sources outside our agency. We are potentially liable for the validity of the credit report, therefore we have to use a report that we generate and authenticate.
Typically, lenders will want to see at least 2 years of consistent & uninterrupted employment history. However, there are exceptions to the rule and that is something that your lender will discuss with you in detail. Parkview Services will generally follow the determination of the first mortgage
There is no limit on how many people can be on the loan, but our program doesn’t permit non- occupant borrowers. Each applicant must reside in the home as their primary residence.
Yes. We will provide you with a list of lenders and realtors that we work with and who are familiar with the purchase and financing programs needed for our clients.
Yes and No. While we encourage you to work with the lenders and realtors that we have established working relationships with, we respect your choice to select your own realtor and lender. If you choose your own realtor and lender, they would have to set up appointments with us and allow us to explain the details and guidelines of our program to them. Once they understand and agree to the terms of our program, they are added to our list of approved lenders and realtors and become part of your homeownership team. For additional information, see our Parkview Lender Realtor Guidelines.
Since we are not a 1st mortgage lender, our loan will subordinate to the 1st mortgage lender. This means that when it’s time to pay off your mortgage, the 1st mortgage lender will be paid off first and then the subordinate financing (Parkview Services & sometimes others as well) will be paid in the order of their financing position.
No, Parkview Services only offers subordinate financing. You will have to be approved for a first mortgage in order to be able to qualify for Parkview Services down payment assistance.
Shared Appreciation is the Lender’s proportionate share of the appreciated value of the property. Essentially, the borrower will not be charged interest on the loan that we provide but rather share a percentage of the future value of the property when he or she decides to refinance or sell the home.
Parkview Services’ shared appreciation is based on a sliding percentage scale that decreases the longer you own the home.
King, Skagit and Snohomish Counties.
Please refer to our Lender Realtor Guidelines.
Yes. The home has to be newer than 1978 to qualify for our program. It needs to be permanently affixed to a property and already have been title eliminated, i.e. converted from personal property to real property. Homes in a Mobile Park
do not qualify.
There are many moving parts and aspects to consider when planning to purchase a home using various down payment assistance programs. Timelines can vary based on the individual situation and on the availability of funding.
Yes. We require our clients to save up or provide a minimum of $1000 or more depending on the type of program they will use to purchase their home. A minimum of $500 from our clients own funds must be used directly towards the home purchase through our program.
Parkview Services remains your partner in homeownership long after you receive keys to your home. We are a HUD approved housing counseling agency and we have a Mortgage Default Program that is dedicated to helping struggling homeowners.
Please notify us of your intent to sell and we’ll provide you with a shared appreciation analysis and help any questions you may have.
You can always refinance by paying off the down payment assistance loan as part of the refinance. Parkview Services will generally re-subordinate its loan if refinancing lowers your monthly payment and you do not take cash out. Give us a call to discuss your
Yes. We collaborate with other organizations in the community in order to achieve the best possible outcomes for our clients.
No, however we highly encourage you to attend our class. If our locations or times are not convenient for you, we understand if you attend the workshop elsewhere. Classes are offered at various locations. Please check here.
Parkview Services seeks to accommodate any person in need of interpreter service.