The House Key State Bond Program

Administered by the Washington State Housing Finance Commission (WSHFC), the House Key State Bond program provides opportunities for home ownership for Seattle real estate utilizing proceeds from the sale of State bonds. The State then purchases below market mortgages underwritten by participating lenders. Essentially, the State of Washington is subsidizing below market interest rates for the public benefit.

A Commission approved lender will qualify an applicant on a typical 30-year mortgage loan program using the Commission's lower interest rate. A single family home, town home, condominium, and in some instances, a manufactured home, can be financed with the House Key State Bond program to purchase Seattle real estate. All borrowers that will be listed on the mortgage note and Deed of Trust must attend a Homebuyer Education seminar that has been registered through the Commission and meets instruction standards set by the Commission.

What is the benefit to qualifying for the House Key State Bond program?

• Complete your home purchase with a 100% loan vs. an 80/20
• The stated rate doesn't change throughout the availability period
• The rate is fixed and usually well below open market rates
• Interest-Only and 40-year mortgage options are also available

First-Time Homebuyer Requirement

The borrower(s) must be a first-time homebuyer, however this is defined as someone who has not owned and occupied a primary residence at any time in the three years prior to the closing of the mortgage loan. There is now also an exception for military veterans.

Current Rates

On July 30, 2007 the Washington State Housing Finance Commission announced new rates for the latest issue of the State Bond program as follows:

• 5.50% fixed interest rate for 30 years /maximum 2.00 points
• 5.75% fixed interest rate for 30 years /maximum 1.00 point
• 6.0% fixed interest rate for 30 years /with 0 points

This announcement marks the recent release of funds at new bond rates. Since the WSHFC offers these mortgage programs based on the sale of mortage bonds, they are subject to periodic changes in rate. These rate adjustments however, do not fluctuate like traditional market-rate interest programs in the Seattle real estate market. State Bond rates remain fixed at the announcement of the availability of funds and therefore do not have the daily, even hourly rate fluctuations as traditional mortgage programs are subject to. This is one of the reasons why this program is so nice in comparison to the traditional mortgage offerings.