City of LakewoodProgram temporarily suspended – Call Housing Specialist at (253) 983-7785 for details
Are you looking to buy a home in Lakewood? Studies have shown that a lack of adequate funding for down payment and closing costs remains one of the main obstacles to homeownership. In order to provide improved access to the housing market, the City of Lakewood offers a Down Payment Assistance (DPA) program that assists qualified homebuyers with down payment and closing costs to purchase a home within the Lakewood city limits.
Do I qualify for the program?
To be eligible for this program, applicants must meet the program income guidelines established by the federal Department of Housing and Urban Development (HUD) (see table below). DPA funds can only be used for the purchase of a home that is either owner-occupied or vacant and will be used as the purchaser’s primary residence.
| FAMILY SIZE | Median Income |
Maximum Income - (80% of Median Income) |
|---|---|---|
| CDBG Effective December 1,2011/ HOME Effective February 9, 2012 | ||
| 1 | $50,200 | $40,150 |
| 2 | 57,400 | 45,900 |
| 3 | 64,600 | 51,650 |
| 4 | 71,700 | 57,350 |
| 5 | 77,500 | 61,950 |
| 6 | 83,200 | 66,550 |
| 7 | 89,000 | 71,150 |
| 8 | 94,700 | 75,750 |
How does the program work?
Loans up to $7,000 with no interest and no monthly payments for up to 20 years are available to qualified homebuyers who meet the program requirements. These funds are to be used for down payment and closing costs (prepaid costs such as taxes and interest are not eligible). The borrower must match at least half of the required down payment (half of the difference between the sales price and the first mortgage loan amount). Gift funds for borrower investment are allowed. The borrower does not have to be a first-time homebuyer.
Application assistance is made through your lender in cooperation with the Lakewood Community Development Department- CDBG. Once you have met your lender’s requirements and qualify for a home loan, have your loan officer contact Pat Chubb at (253) 983-7785.
What types of property are eligible?
- Single-family dwelling
- Condominium
- Townhouse
- Manufactured housing (not older than 1990, on a permanent affixed foundation, on owned or purchased land. Land/home packages will be accepted at closing.)
To be eligible, the property must be zoned single-family residential, mixed residential, multi-family high density, neighborhood commercial, central business district, or air corridor.
Are there any other requirements?
Prior to loan approval, City staff must inspect the property to determine it meets HUD Housing Quality Standards and is free from code-related deficiencies. Houses built prior to January 1, 1978 must be inspected by City staff to determine if deteriorated paint exists. If there is deteriorated paint and it is found to contain lead above a certain level, it must be specially treated by trained personnel prior to commitment of DPA funds.
Combined loan-to-value ratio cannot exceed 105 percent (1 stmortgage plus down payment assistance). The property value must not exceed the FHA 203(b) loan limits or 95 percent of the median local purchase price limits established by the City and approved by HUD. DPA loans in 3 rdlien position are acceptable if the 2 ndlienholder is the Pierce County Housing Authority Section 8 homebuyer plan, including purchase plans for persons with disabilities.
Funds provided for DPA shall become due upon sale, refinance or transfer of ownership, or if the property is no longer occupied by the owner.
How do I apply?
This program is administered by the Community Development Department located on the second floor of Lakewood City Hall at 6000 Main St. SW. For more information or to apply for this program contact Housing Specialist Pat Chubb at (253) 983-7785 or e-mail pchubb@cityoflakewood.us .