HOMEBUYER QUALIFICATIONS

In order to be eligible for homeownership through Homestead’s program, you must:

 

• Be A First Time Homebuyer—Do you now or have you owned a home anytime in the past three years?

 

If "yes", you are NOT eligible. If "no", keep reading.

 

• Be Income-Eligible—Is your gross (before taxes) annual income less than the maximum income listed on the right for your household size?

  • Income from all household members over 18 years old should be included.​

  • Household members are the people who would live in the home if you were to buy through Homestead's program. ​

 

If "no", you are NOT eligible. If "yes", keep reading. (If you are close to the limits or are not sure AND meet all the other requirements, keep reading.)

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• Does your household make more than $50,000 per year OR have more than $20,000 to spend on the purchase of a home?

  • The minimum annual income that can afford the monthly housing costs of an average Homestead home is $50,000, unless you have a significant savings available for a downpayment (e.g. $20,000 or more).

 

If "no", you are NOT eligible. If "yes", keep reading.​

 

• Are you able to Contribute at least 1% of the Home's Purchase Price or $2,500 (whichever is greater) to the down payment?

  • You must also spend all but $15,000 of your liquid assets*, if you have that much, on the home purchase. For example: homebuyers with $25,000 in their checking account will be required to contribute at least $10,000 towards the purchase

    • Homestead homes cannot be purchased with cash, therefore the maximum liquid asset limit is the price of the home.

 

*Liquid assets include money that the applicant has immediate access to, such as: checking & savings accounts and investment accounts that can be withdrawn from without penalty. 

*liquid assets do not include retirement accounts, stocks, or physical assets such as cars, gold or jewelry. 

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​If "no", you are NOT eligible. If "yes", keep reading.

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• Lastly, you must understand our program’s mission and efforts to create permanently affordable homes in King County.

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If you are still reading than you should be eligible for our program. To start receiving notifications of homes for sale submit the Eligibility Form. 

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To qualify for a specific home, the monthly housing costs for the home (monthly mortgage payment, property taxes, insurance, etc.) cannot be more than 40% of the Household's monthly income.

 

When you apply for a specific home you must also be able to qualify for a 30-year fixed rate mortgage, ITIN mortgage or Halal home financing through a participating lender. Homestead provides our participating lender list to top applicants when they are selected for a specific home. See the steps to apply for a home in the Finding Your Home section.