Pairing WSHFC assistance with a VA loan
Mike Certo · Cornerstone First Mortgage · NMLS #260555 ·
VA loans don't require a down payment, so why add assistance? Closing costs. Washington's WSHFC programs can cover those on a $0-down VA loan. We help you decide whether assistance makes sense and which single program fits best.
The WSHFC programs
| Program | What it does | Notes |
|---|---|---|
| Veterans Downpayment Assistance | Deferred second at 3.00%, up to $10,000, payments deferred up to 30 years | Veterans, Guard/Reserve, unremarried surviving spouses; income limits $164,400 (King/Snohomish) / $126,800 elsewhere |
| Home Advantage DPA | A down payment assistance second paired with a Home Advantage first | Broad eligibility |
| House Key Opportunity | Assistance for lower-income first-time buyers | Tighter income limits |
For a VA buyer, the assistance typically goes toward closing costs and prepaids since VA already covers the down payment.
Eligibility
- Credit: generally about a 620 score.
- Homebuyer education: a WSHFC-sponsored seminar is required before closing.
- Income and price limits: vary by program and county.
- One program per transaction: you cannot combine multiple DPA programs.
Things to watch
- Use a WSHFC-approved lender who can run the VA first mortgage and the WSHFC second together.
- Run the income test early — a working spouse's income can affect eligibility.
- Funding fee waiver: a 10%+ service-connected disability rating waives the VA funding fee entirely.
- The deferred second is repaid per its terms; a VA IRRRL can usually subordinate it, while a cash-out refinance may require paying it off.
Frequently asked questions
Why would a VA buyer need down payment assistance if VA is $0 down?
VA already covers the down payment, so WSHFC assistance is most useful for closing costs and prepaids. On a $0-down VA loan, a WSHFC second can get an eligible buyer close to zero cash to close.
What is the WSHFC Veterans Downpayment Assistance program?
It is a deferred second mortgage at 3.00% interest with payments deferred up to 30 years, up to $10,000. Income limits are about $164,400 in King and Snohomish counties and $126,800 elsewhere. Honorably discharged Veterans, Guard and Reserve members, and unremarried surviving spouses are eligible.
Does using WSHFC assistance affect my VA entitlement?
No. The WSHFC second is separate from your VA first mortgage. Your VA loan uses entitlement; the second does not, so you preserve future-purchase entitlement.
What are the credit and homebuyer-education requirements?
WSHFC programs generally look for about a 620 credit score and completion of a WSHFC-sponsored homebuyer education seminar before closing.
Can I combine more than one down payment assistance program?
Only one down payment assistance program applies per transaction. We help you pick the single program that fits your situation best.
Want Mike to model your specific scenario? Send your numbers or call (480) 296-6513.