Great news for first-time homebuyers! Home prices are low, interest rates are low, inventory is high – if all you’ve been waiting for is to save up a down payment – stop waiting! It’s time to buy your home!

The Washington state legislature has just approved a program that will allow first-time homebuyers to use the $8,000 federal tax credit (see post below on tax credit) as a down payment.

From the press release: “The program authorizes the state treasurer to deposit $25 million in a financial institution, which would then open a line of credit for the Washington State Housing Finance Commission (HFC). The HFC would use that credit line to pay for down payment loans to first-time buyers. Buyers repay the advance loan after filing for and receiving the tax credit.”

First-time homebuyers  will be able to make a loan from the Washington state HFC for the amount of their tax credit to use as their down payment, and will repay the loan from their tax return.

If you are a first-time homebuyer who needs down payment assistance, be sure to choose a real estate agent and a mortgage professional who is aware of this new program and how to use it in structuring your purchase.