Down Payment Assistance

Effective January 1, 2014, for loans funded with HOME Down Payment Assistance, the maximum sales price/property values allowed are $177,000.00 for existing housing and $233,000.00 for new construction.

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 of 80% of the median income limit, 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.

HOME Program Income Limits
Family Size Median Income 30% of Median
Income Limit
50% of Median
Income Limit
80% of Median
Income Limit
HOME Effective: March 15, 2013
1 $49,200 $14,750 $24,600 $39,350
2 56,200 16,850 28,100 44,950
3 63,200 18,950 31,600 50,550
4 70,200 21,050 35,100 56,150
5 75,900 22,750 37,950 60,650
6 81,500 24,450 40,750 65,150
7 87,100 26,150 43,550 69,650
8 92,700 27,800 46,350 74,150
CDBG Program Income Limits
Family Size Median Income 30% of Median
Income Limit
50% of Median
Income Limit
80% of Median
Income Limit
CDBG Effective: December 18, 2013
1 $46,900 $14,100 $23,450 37,550
2 53,600 16,100 26,800 42,900
3 60,300 18,100 30,150 48,250
4 67,000 20,100 33,500 53,600
5 72,400 21,750 36,200 57,900
6 77,800 23,350 38,900 62,200
7 83,100 24,950 41,550 66,500
8 88,500 26,550 44,250 70,800

How does the program work?

HOME DPA: Loans up to $10,000 with no interest and small monthly payments, depending on income level, 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.

CDBG DPA: Funds are currently unavailable.

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 Program Coordinator Martha Larkin at (253) 983-7754.

Lender Information

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 Uniform Physical Condition 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.

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 Program Coordinator Martha Larkin at (253) 983-7754 or e-mail .