City of Tacoma Down Payment Assistance
The City of Tacoma is offering a new DPA Program. Under this new program, the City will assist eligible first-time home buyers with up to the FHA required down payment (currently 3½%) to purchase a home in any of the eligible areas of Tacoma. Example: Purchase Price: $150,000 x 3.5% = $5,250 in DPA assistance. NOTE: Buyer must contribute at least $1,000 toward the purchase price.
The DPA funds can only be used for the purchase and owner-occupancy of a house that is currently owner occupied or vacant, single family dwelling in an eligible area of Tacoma. Rentals occupied by tenants who will be displaced or have recently been displaced within the past 90 days can not be considered for a DPA loan. House must be purchased at or below the current appraised value; an appraisal within the past 60 days.
Program Requirements; Ratios of 40% front (PITIMI) and 50% back (total of all monthly payments); and borrower must be a first-time home buyer (not have owned a home for the past three years) and must invest at least $1,000.00 of their own money. The DPA loans have a 30 year term at 0% interest with no payments; due at the end of 30 years or when the purchaser no longer occupies the home as their primary residence.
It takes at least 10 business days to process a “Complete” DPA application from the time they have all the documentation.