Home Advantage

Key Takeaways

• Home Advantage is the flagship first mortgage program of the Washington State Housing Finance Commission. It is a 30 year fixed rate loan, written by lenders the Commission has trained.
• Home Advantage does not require first-time homebuyer status. The Commission's own program page states there is no need to be a first-time homebuyer.
• Home Advantage uses a single statewide maximum annual income limit of $180,000 rather than a county by county table.
• A Commission-approved homebuyer education class must be completed before the loan closes, and a certificate from a Commission-sponsored class is good for two years.

What It Means

Home Advantage is the flagship first mortgage program of the Washington State Housing Finance Commission, the state body established by RCW 43.180.040. It is a 30 year Fixed Rate Mortgage at competitive market rates, written by lenders the Commission has trained and approved rather than by the Commission itself. The buyer applies with a participating lender and closes an ordinary FHA, VA, USDA, or conventional loan. The Commission's work sits behind that loan.

Two features separate it from most assistance programs. First, it is open to repeat buyers. The Commission's program page says there is no need to be a first-time homebuyer, which is unusual enough that it shows up on exams. Second, eligibility runs on one statewide maximum annual income limit of $180,000, so a buyer in Okanogan County and a buyer in Bellevue are measured against the same number.

Home Advantage is also the platform other help attaches to. A Commission Down Payment assistance second rides behind the first mortgage, which is how a buyer with a thin savings account still reaches a closing table. The Commission runs targeted assistance loans alongside it, including the Covenant Homeownership Program, and a buyer reaches all of them through the same Commission-trained lender.

How It Works in Washington

The Commission is a creature of statute. RCW 43.180.040 establishes a public body corporate and politic, with perpetual corporate succession, to be known as the Washington state housing finance commission, and describes it as an instrumentality of the state exercising essential government functions. RCW 43.180.050 grants the housing financing powers that Home Advantage runs on. The commission may invest in, purchase, or make commitments to purchase or take assignments from mortgage lenders of mortgages or mortgage loans, may make loans to or deposits with mortgage lenders for the purpose of making mortgage loans, and may make loans for down payment assistance to homebuyers in conjunction with other commission programs. That last power is the statutory footing for the assistance seconds that pair with a Home Advantage first.

What that means at a broker's desk is narrow and specific. A real estate broker does not originate the loan, does not set the rate, and cannot promise a buyer an approval. The broker's job is to raise the program at the first meeting, ask whether household income is under the $180,000 statewide cap, send the buyer to a Commission-trained lender, and make sure the homebuyer education class is scheduled early enough that the certificate is in hand when the lender asks for it. Our guide to navigating Washington down payment assistance programs shows how the pieces stack in a live transaction.

Example

Jenna and Ola Adeyemi earn $146,000 a year together and want a $475,000 townhouse in Lacey. They owned a condo in Yakima five years ago, which closes the door on most first-time buyer programs. Home Advantage stays open to them, because it carries no first-time buyer requirement and their $146,000 sits under the $180,000 statewide income limit.

They finish a Commission-sponsored homebuyer education class in March and receive a certificate good for two years. In June they apply with a Commission-trained lender, take a 30 year fixed first mortgage on the $475,000 price, and add a Commission down payment assistance second so they are not writing a five figure check at signing. Their broker, Alicia Ruiz, did the one thing that made the timing work. She asked about household income and education back in February, so nothing had to be rushed in June.

Common Mistakes and Exam Traps

• Home Advantage is not a first-time homebuyer program. The Commission states there is no need to be a first-time homebuyer, which separates it from programs that do carry that restriction.
• The income limit is statewide, not by county. Home Advantage measures every borrower against one maximum annual income limit of $180,000 across Washington.
• The Commission does not lend to the buyer directly. Home Advantage loans are made by Commission-trained participating lenders, and RCW 43.180.050 lets the Commission purchase or fund those loans rather than originate them.
• Homebuyer education is a condition of the loan, not a suggestion. The class has to be finished before closing, and a Commission-sponsored class certificate is good for two years.