Finance
A Washington homebuyer uses down payment assistance from the Washington State Housing Finance Commission (WSHFC). This assistance is typically structured as:
AAn outright grant with no repayment requirement
BA deferred second mortgage or soft second that is repaid upon sale, refinance, or payoff of the first loan✓ Correct
CA tax credit applied to the purchase price
DA co-investment by WSHFC in the property
Explanation
WSHFC down payment assistance programs typically offer a second mortgage loan that is deferred (interest-free or low-interest) and repaid when the home is sold, refinanced, or the first mortgage is paid off — making homeownership accessible without upfront repayment obligations.
Related Washington Finance Questions
- In Washington, a 'contract for deed' (land installment contract) is considered a financing instrument rather than a sale because:
- A Washington buyer's loan has a 'due-on-sale' clause. This means:
- In Washington, which type of mortgage allows the borrower to use the property as collateral without it being in the borrower's name (used for investment purposes)?
- A Washington buyer borrows $400,000 at 7% annual interest. What is the interest accrued in the first month?
- The Dodd-Frank Act created the Consumer Financial Protection Bureau (CFPB), which regulates Washington mortgage lenders primarily through:
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- In Washington, home equity lines of credit (HELOCs) are secured by:
- Washington's Real Estate Excise Tax (REET) is paid by:
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