First-Time Homebuyers in Clark County: How to Access Financial Assistance from Nonprofits and State Programs

With mortgage rates fluctuating, many first-time homebuyers in Clark County are entering the market, and a variety of nonprofits and state programs are available to support them.

“As people learn about these resources, they begin to realize that homeownership might be within reach,” says Darryl Smith, executive director of HomeSight, a Seattle-based homeownership nonprofit. “The main question is knowing how to get started.”

Steps to Take for First-Time Buyers

Experts recommend first-time buyers start with education, understanding their financial situation, and exploring available assistance programs. Here’s how some of these programs work.

Assistance Programs in Clark County

The average home price in Clark County is currently $535,000, according to the latest report from the Regional Multiple Listing Service.

“I think many people look at home prices or browse online and feel like homeownership is out of reach,” says Heather Cochrun, director of community engagement at Evergreen Habitat for Humanity, which assists buyers in purchasing homes the organization builds.

Despite the high average, there are still about 80 homes sold for under $400,000 each month in Clark County. While these homes might need repairs or be smaller, buying a home is an opportunity to build generational wealth and secure stable housing payments, according to Smith from HomeSight.

“When you own a home, you have the stability of knowing your payments won’t suddenly increase, unlike rent,” he explains.

For households earning below the median income of $116,900 in Clark County, the $400,000 price range can still be challenging without a down payment saved. Fortunately, assistance is available.

Available Down Payment Assistance Programs

Households earning less than $180,000 annually and with a credit score of 620 or higher may qualify for thousands of dollars in down-payment assistance, typically ranging from 3% to 5% of the purchase price, as per the Washington State Housing Finance Commission.

The Home Advantage Downpayment Assistance program offers up to 3% or 4% of the total loan amount, or even up to 5% with specific loan types, like conventional or FHA loans. This program provides a zero percent interest rate with payments deferred for 30 years. In Clark County, households earning less than $115,900 may also qualify for up to $10,000 in assistance with a 1% interest rate, and payments deferred for 30 years.

Additionally, the Opportunity Downpayment Assistance Loan Program offers up to $15,000 for households earning less than $75,550 for one or two people or $94,400 for larger households, when purchasing in specific low-income areas of Clark County.

Other state programs provide assistance for veterans, individuals with disabilities, and those whose families experienced housing discrimination in Washington.

The Covenant Homeownership Act, passed in 2023, offers up to 20% in down-payment assistance for those with parents, grandparents, or great-grandparents who lived in Washington before 1968, the year the Fair Housing Act was enacted. Eligible family members must belong to specific minority groups including Black, Hispanic, Native American, and others as defined by the program.

Finding the Right Assistance Program

Navigating these programs and determining eligibility can be challenging, especially for those without the required credit score. Fortunately, various organizations provide guidance and additional financial support.

HomeSight, the Native American Youth and Family Center, Save First, and the Washington State Housing Resource Center are available to educate and assist potential homebuyers.

The state also offers free homebuyer education seminars, which are a requirement for accessing state loans.

Experts caution against seeking a mortgage directly through large online companies before getting housing counseling. “You may face a ‘no’ or feel discouraged, which could delay your homeownership journey,” Smith warns.

Tips for First-Time Buyers

Understanding your credit score is a crucial first step. Cochrun of Evergreen Habitat for Humanity often directs individuals to Save First, an organization that helps people improve their credit and manage debt. HomeSight offers similar services to stabilize finances and prepare buyers for loan applications.

In Clark County, HomeSight offers down-payment assistance programs that could provide up to $35,000.

Smith advises first-time buyers to avoid significant purchases like new cars or accumulating credit card debt before applying for a mortgage. “Maintaining financial stability is key when preparing to buy a home,” he says.

Cochrun also suggests that new homeowners take repair and maintenance classes to avoid unexpected expenses and maintain the home's value. “People often don’t realize that maintaining a home goes beyond basic cleaning,” she explains. “There are important steps to ensure the longevity of your home.”

Navigating the journey to homeownership can be complex, but with the right education and resources, first-time buyers in Clark County have a range of options to make their dream a reality