Jul

2025

Washington First-Time Home-Buying Assistance Programs & Grants for 2025

By Dana Jennings Jelter | mortgage | Comments Off

Washington First-Time Home-Buying Assistance Programs & Grants

With its abundance of forests, mountains, and water, Washington is an incredibly beautiful state. It’s also a great place to work: The ever-booming tech scene has created numerous job opportunities. It’s no wonder then that so many people, including first-time buyers, are looking to purchase a home in the Evergreen State.

But living in Washington isn’t necessarily cheap: Homes sell for an average of $611,301, according to Zillow, which is substantially higher than the U.S. average of $367,969.

If you’re a first-time homebuyer in Washington, however, several first-time homebuyer programs in the state may help you save on your first home, and other resources can make purchasing property more affordable. Read on for details.

Who Is Considered a First-Time Homebuyer in Washington?

In Washington, anyone who hasn’t owned a home in the last three years is considered a first-time homebuyer. Some programs may offer access to those who don’t fit this mold — if you purchase a home in a target area or are an honorably discharged veteran, for example — so it can be worthwhile to check the fine print.

💡 Quick Tip: You deserve a more zen mortgage loan. When you buy a home, SoFi offers a guarantee that your loan will close on time. Backed by a $10,000 credit.‡

3 Washington Programs for First-Time Homebuyers

First-time homebuyer programs in the state are accessible through the Washington State Housing Finance Commission’s Here to Home homeownership site. The programs may have certain requirements, including income caps and purchase price maximums. However, if you meet the criteria, you can save on the interest with special mortgage loans or get down payment and closing cost assistance.

WSHFC: Home Advantage Program
WSHFC: House Key Opportunity Program
WSHFC: Down Payment Assistance

1. WSHFC: Home Advantage Program

This first-mortgage loan program can help homebuyers with a household income under $180,000 (no matter your family size or location) get a low-interest rate on a mortgage.

You’ll need to attend a free Homebuyer Education Seminar. Once you receive your certificate of completion, contact a Commission-Trained loan officer to see if you qualify for the program.

2. WSHFC: House Key Opportunity Program

This program offers the best loan terms for first-time homebuyers with low to moderate incomes (meaning those who have never owned a home or haven’t owned and occupied a home in the last three years) or who are looking to purchase a home in a target area.

There are income and acquisition cosst limits you must meet, and you will likely need a credit score of at least 620. Plus you will also need to attend a free homebuyer education course offered by WSHFC.

3. WSHFC: Down Payment Assistance

If you take out a mortgage through either of the above WSHFC programs, you may also be eligible for its Down Payment Assistance program, which provides, on average, $10,000 to be used toward a down payment. The loan is likely to be deferred, and you won’t have to pay until the mortgage is paid off or you sell or transfer the property.

To qualify, you must have a household income within certain limits and a credit score of 620 or more. Using an online mortgage calculator can help you see how much you’d pay for a home loan each month and size up various options.

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How to Apply to Washington Programs for First-Time Homebuyers

First you must meet the program’s qualifications, as outlined above. In addition, you may need to attend a free Homebuyer Education Seminar. The next step in the process is to contact a loan officer trained by the commission to see if you qualify. Find out more at the WSHFC website .

Federal Programs for First-Time Homebuyers

A number of federal government programs exist for people with low credit scores or limited down payment funds. Although they are sometimes for repeat homeowners, these national programs can be very helpful for people who are buying a first home or who haven’t owned a home in several years.

The mortgages are generally for single-family homes, two- to four-unit properties that will be owner-occupied, approved condos, townhomes, planned-unit developments, and some manufactured homes.

Federal Housing Administration (FHA) Loans

The FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Here are a few key points to note:

• Homebuyers choose from a list of approved lenders participating in the FHA loan program. Loans offer competitive interest rates and require down payments of 3.5% of the purchase price. Borrowers typically need FICO® credit scores of 580 and up. A buyer with a score as low as 500 must put down 10% or more.

• FHA loan limits in 2025 range from $524,225 for single units to $1,008,300 for four-unit properties, with higher limits in high-cost areas.

• In addition to examining your credit score, lenders will typically look at your debt-to-income ratio (DTI, your monthly debt payments compared with your monthly gross income). FHA allows a DTI of up to 57%, vs. a typical 45% to 50% maximum for a conventional loan.

• If you are lucky enough to receive gift money for the down payment, that is often allowed from certain donors and will be documented in a gift letter for the mortgage.

• FHA loans always require mortgage insurance premiums (MIP): This includes a fee of 1.75% of the base loan amount, which can be rolled into the loan, upfront. Borrowers also carry annual premiums for the life of the loan. As of 2025, monthly MIP for new homebuyers is 0.15% to 0.75%. A down payment of at least 10% allows the removal of mortgage insurance after 11 years. For a $300,000 mortgage balance, upfront MIP would be around $5,250 and monthly MIP, at a rate of 0.55%, would be about $137.

Want to learn more about these loans, including FHA loans for refinance and rehab of properties? Read up on FHA requirements, loan limits, and rates.

Freddie Mac Home Possible Mortgages

Low- and very low-income borrowers may make just a 3% down payment on a Home Possible® mortgage. Consider these points:

• These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity.

• The Home Possible mortgage is for buyers who have a credit score of at least 660.

• The Home Possible mortgage is for buyers who have a credit score of at least 660. Once you pay 20% of your loan, the mortgage insurance will be canceled, which will lower your mortgage payments.

Fannie Mae HomeReady Mortgages

HomeReady® Mortgages allow down payments as low as 3% for low-income borrowers. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above. Like those offered by the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants.

For income limits, a comparison to an FHA loan, and other information, go to this Fannie Mae site .

Fannie Mae Standard 97 LTV Loan

The conventional 97 LTV loan is for first-time homebuyers of all income levels who have a credit score of 620 or better and meet debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get down payment and closing cost assistance from third-party sources.

Department of Veterans Affairs (VA) Loans

Active members of the military, veterans, reservists, and surviving spouses who are eligible may apply for loans backed by the Department of Veterans Affairs. Here are some of the advantages:

These loans designed for those who serve our country do not require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20%. And they have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.

• VA loans, which can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment. Most borrowers pay a one-time funding fee that can be rolled into the mortgage.

• VA loans do not require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20%.

• These loans have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.

Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA, so make sure to review a guide to qualifying for a VA loan as a first step in the process.

💡 Quick Tip: A VA loan can make home buying simple for qualified borrowers. Because the VA guarantees a portion of the loan, you could skip a down payment. Plus, you could qualify for lower interest rates, enjoy lower closing costs, and even bypass mortgage insurance.†

Native American Veteran Direct Loans (NADLs)

These no-down-payment loans for eligible Native American veterans and their spouses may be used to buy, improve, or build a home on federal trust land. Unlike VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. The VA requires no mortgage insurance, but it does charge a funding fee. You can learn more about these loans by emailing [email protected].

US Department of Agriculture (USDA) Loans

No down payment is required on these loans to moderate-income borrowers that are guaranteed by the USDA in specified rural areas. Borrowers pay an upfront guarantee fee and an annual fee that serves as mortgage insurance.

The USDA also issues loans to low- and very low-income people directly. For loan basics and income and property eligibility, head to this USDA site .

HUD Good Neighbor Next Door Program

If you are a police officer, firefighter, emergency medical technician, or teacher, you may qualify for an affordable path to homeownership in the area you serve. Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years.

Visit the HUD program page for more information.

First-Time Homebuyer Stats for 2025

Here are a few numbers to know about homebuyers in America:

• Percentage of buyers nationwide who are first-time buyers: 24%

• Median age of first-time homebuyers: 38

• Median down payment for first-time homebuyer: 9%

• Average home price in Washington: $611,301

• Median list price in Washington: $624,650

• Percent of sales over list price in Washington: 38%

• Percent of sales under list price in Washington: 37%

• Average credit score of homebuyer in Washington: 735

Financing Tips for First-Time Homebuyers

Now that you know the mortgage basics for a first-time homebuyer in Washington, here are other financial strategies that may help you purchase a house.

• Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. A first-time homebuyer, for the purposes of IRA withdrawals, is someone who has not owned a principal residence in the last two years.

You will still owe income tax on any IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside is that large withdrawals may take a sizable bite out of your retirement savings.

• Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of those contributions for any reason, though you need to have held the account for five years.

You can also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years. With accounts held for less than five years, homebuyers will pay income tax on earnings withdrawn.

• 401(k) loans. If your employer sponsors and allows borrowing from a 401(k) plan, you can consider taking a loan against the 401(k) account to help finance your home purchase.

With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000, within a 12-month period without incurring taxes or penalties.

• State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.

• The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas can claim a portion of their mortgage interest as a tax credit, up to $2,000. Any additional interest paid can still be used as an itemized deduction.

To qualify for the credit, you must be a first-time homebuyer, live in the home, and meet income and purchase price requirements, which vary by state. If you refinance, the credit disappears, and if you sell the house before nine years, you may have to pay some of the tax credit back. There are fees associated with applying for and receiving the mortgage credit certificate that vary by state. Often, the savings from the lifetime of the credit can outweigh these fees, however.

• Your employer. Your employer may offer access to lower-cost lenders and real estate agents in your area, as well as home buying education courses. It can be worthwhile to check with your benefits team to see what may be available.

• Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.

Finally, using an online home affordability calculator can show you how much house you can afford.

The Takeaway

First-time homebuyers in Washington may qualify for one of the state’s programs designed to help them save money on a mortgage, down payment, and closing costs. There are also other options, such as federal and conventional loans, that can help them achieve their goal of owning a home in the Evergreen State.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

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FAQ

Should I take first-time homebuyer classes?

It can be a smart move. First-time homebuyer classes can help familiarize you with the lingo involved with buying a home, as well as important principles and steps to follow when purchasing a property. First-time homebuyer classes are also required for many government-sponsored loan programs. And for everyone else, this experience is a great way to get acquainted with the home-buying process before you dive into your search in earnest.

Do first-time homebuyers with bad credit qualify for homeownership assistance?

Often they do. Many government and nonprofit homeowner assistance programs are available to people with not-so-great credit scores. And often, interest rates and other loan pricing are competitive with those of loans available to borrowers with higher credit scores. Almost any lending program has credit qualifications, so do your research.

Is there a first-time veteran homebuyer assistance program in Washington?

Yes. WSHFC has a Veterans Downpayment Assistance Loan Program that can help first-time veteran homebuyers with up to $10,000 in assistance with a down payment on a home. The U.S. Department of Veterans Affairs also offers home loans to servicemembers, veterans, and eligible surviving spouses.

What credit score do I need for first-time homebuyer assistance in Washington?

Credit score requirements vary, depending on the homebuyer assistance program. For example, the Down Payment Assistance Program offered by WSHFC requires a credit score of 620, but exceptions occur.

What is the average age of first-time homebuyers in Washington?

The average age of a first-time homebuyer has increased to an all-time high of 38, according to data from the National Association of Realtors®.

Photo credit: iStock/MarkHatfield

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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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^‡SoFi On-Time Close Guarantee: If all conditions of the Guarantee are met, and your loan does not close on or before the closing date on your purchase contract accepted by SoFi, and the delay is due to SoFi, SoFi will provide you $2,000.^ Terms and conditions apply. This Guarantee is available only for loan applications submitted after 6/15/22 for the purchase of a primary residence. Please discuss terms of this Guarantee with your loan officer. The property must be owner-occupied, single-family residence (no condos), and the loan amount must meet the Fannie Mae conventional guidelines. No bank-owned or short-sale transactions. To qualify for the Guarantee, you must: (1) Have employment income supported by W-2, (2) Receive written approval by SoFi for the loan and you lock the rate, (3) submit an executed purchase contract on an eligible property at least 30 days prior to the closing date in the purchase contract, (4) provide to SoFi (by upload) all required documentation within 24 hours of SoFi requesting your documentation and upload any follow-up required documents within 36 hours of the request, and (5) pay for and schedule an appraisal within 48 hours of the appraiser first contacting you by phone or email. The Guarantee will be void and not paid if any delays to closing are due to factors outside of SoFi control, including delays scheduling or completing the appraisal appointment, appraised value disputes, completing a property inspection, making repairs to the property by any party, addressing possible title defects, natural disasters, further negotiation of or changes to the purchase contract, changes to the loan terms, or changes in borrower’s eligibility for the loan (e.g., changes in credit profile or employment), or if property purchase does not occur. SoFi may change or terminate this offer at any time without notice to you. ^To redeem the Guarantee if conditions met, see documentation provided by loan officer.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

‡Up to $9,500 cash back: HomeStory Rewards is offered by HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with SoFi Bank, N.A. (SoFi). SoFi is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from SoFi is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender. Rebate amount based on home sale price, see table for details.

Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.

HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.

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If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.

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Jul

2025

Cheaper is Cooler: Cutting Back Is Trending

By Rebecca Moretti | | Comments Off

This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.

People are getting compliments for skipping gel manis for drugstore press-on nails. They’re flaunting how little they paid for Lululemon-dupes. They’re posting videos of cash-stuffed envelopes to show how much they haven’t spent.

As many Americans shift to thrift, cutting back is more than sensible — it’s cool.

Social media feeds are filling up with proud posts about setting “no buy/low buy” rules, and influencers are increasingly “deinfluencing” people from buying stuff. Post-pandemic “revenge spending” has been replaced with “revenge saving.” For many young adults, “nights out” are out.

Data backs up the frugal trend: Spending at restaurants, bars, and hotels fell 11% in May, contributing to the smallest monthly increase in overall consumer spending since 2020.

Americans’ personal savings rate (aka the % of disposable income that people save vs. spend) is ticking back up, rising to 4.5% in May from 3.5% in December. Workers are contributing a record share of their paychecks to their 401(k)s.

Young, Smart, and Trying Not to Go Broke

The switch is especially noticeable among young adults. From January to April, purchases among people 18 to 24 were down 13% year-over-year, while spending among older groups rose, according to Circana market research data cited by the Wall Street Journal.

Unemployment rates among Americans in their early 20s has ticked up this year as entry-level jobs get tougher to find. Meanwhile, for the first time since the pandemic began, not paying your federal student loans has serious consequences.

So what? As tariff price-hikes loom and economic jitters grow, many Americans are tightening their belts. Here are a few ways to embrace financial restraint the cool way — and maybe even have fun doing it:

• Go for the thrill of the “treasure-hunt”: Whether it’s poring through the racks at Ross or thrifting at a second-hand store, finding a hidden gem in the racks never disappoints. Plus, your friends will be impressed by that vintage Levi’s vest you discovered for $5.

• Go out by staying in: Join the Gen Z homebody trend by skipping $20 bar cocktails. Instead, host a cozy dinner party, a potluck buffet, a boardgame night, or a pizza-making experience at home. Your friends (and your wallet) will love you for it.

• Give DIY a try: Compliments feel even better when you can say you did it yourself. It doesn’t have to be as complicated as retiling your own kitchen, either. Instead of dropping $6 on a Starbucks latte, pull up a few videos and learn how to become your own barista (and maybe your own chef). Then post your creations.

• Make saving a game: Participate in one of the many challenges going viral on social media (like the 100-envelope challenge). Financial experts generally recommend setting aside enough to cover three to six months’ worth of living expenses in an emergency savings fund, and you can give yourself a little treat each time you hit one of your monthly goals.

• Curate “freemium” experiences: From concerts in the park and gallery openings to open-mic and line-dance nights, Googling free events near you can pay off. (Pro tip: Some things, like cultural events sponsored by foreign consulates, may even have free food.) Instead of paying $40 for a workout class, follow a tutorial or get friends together for a group backyard workout. Or, get some (free!) fresh air with an outdoor jog.

• Get creative with upcycling: It’s not just good for the environment — it’s also good for your wallet. You can upcycle by finding new purposes for old things (think: turning an ill-fitting skirt into a top, using plastic containers and candle jars as storage). Sustainability is always in style.

Week Ahead on Wall Street: Trade Countdown

By Mario Ismailanji | | Comments Off

An uneasy calm has settled over markets, but the quiet is unlikely to last. With the Independence Day holiday in the rearview mirror, attention now turns to potential fireworks elsewhere.

The main event is Wednesday, the date a 90-day pause on a slate of broad, reciprocal tariffs is set to expire. Back in April, the Trump administration temporarily reduced these country-specific duties to a 10% baseline to allow time for new bilateral trade agreements to be negotiated.

Since then, the president has signaled little appetite for extending the delay, suggesting the looming deadline will stick for any countries that haven’t reached a deal.
Now, investors have so far been largely sanguine about all this — stocks are near record highs, after all — but a return to a high-tariff environment could have major ripple effects, even if not quite as severe as initially feared in April.

Federal Reserve officials have said they expect tariffs to raise prices this summer, though the degree to which they could reignite inflation remains to be seen. How things play out will be crucial in setting the market’s tone for the rest of the summer.

Monday

• Nothing of note.

Tuesday

• June NFIB Small Business Optimism: This measures how small business owners feel about current and future economic conditions.

• June New York Fed Survey of Consumer Expectations: This is a measure of peoples’ expectations for inflation, jobs prospects, earnings growth, and more.

• May Consumer Credit: Borrowing activity gives insight into broader economic activity.

Wednesday

• May Wholesale Inventories and Sales: Wholesalers often operate as an intermediary between manufacturers and retailers, serving as a key part of the goods supply chain.

• FOMC Meeting Minutes: The Federal Reserve releases detailed notes of every FOMC meeting three weeks after their conclusion. Investors often look for more information on Fed officials’ views for hints on the outlook for interest rates and the economy.

• Weekly Mortgage Applications: Mortgage activity gives insight on demand conditions in the housing market.

Thursday

• Weekly Jobless Claims: This high frequency labor market data gives insight into filings for unemployment benefits. Initial jobless claims have remained mostly steady, while continuing claims have increased of late.

• Fedspeak: St. Louis Fed President Alberto Musalem will discuss the economy and monetary policy at an Official Monetary and Financial Institutions Forum event. San Francisco Fed President Mary Daly will discuss the economic outlook and challenges for policymakers at an event hosted by MNI Connect.

• Earnings: Conagra Brands (CAG), Delta Air Lines (DAL)

Friday

• June Treasury Statement: This summarizes the U.S. federal government budget by tracking government revenues and expenditures.

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Jul

2025

Current Home Equity Loan Rates in Williamsville, MO Today

By Dana Paltao | mortgage | Comments Off

KANSAS CITY HOME EQUITY LOAN RATES TODAY

Current home equity loan

rates in Kansas City, MO.

Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.

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Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare home equity loan rates in Kansas City.

Key Points

• Your credit score and debt-to-income (DTI) ratio usually influence the home equity loan rates you’re offered.

• What different lenders will offer you can vary, so it’s wise to shop around to find the best repayment term and interest rate on a home equity loan.

• With fixed interest rates, you’ll make the same payments every month, which can make budgeting easier.

• Specialized online calculators can help you figure out how much your monthly payments and overall interest would be for different home equity loans.

• If you want to leverage your home equity, you can also consider a HELOC or a cash-out refinance instead of a home equity loan.

Introduction to Home Equity Loan Rates

Home equity loans can be a powerful financial resource for homeowners. What is a home equity loan? Simply put, it’s a way you can borrow money by tapping the equity you already have in your home. The cash can be used for major expenditures like home renovations, a child’s college education, or paying down high-interest debt. And the better the interest rate you get on your loan, the better it will be for your finances.

From watching the trends to prepping for your home equity loan application, you’ll find out everything you need to know about home equity loans and their interest rates here. This guide will explore Williamsville home equity loan rates, detailing how they’re affected by broad economic factors as well as your personal financial information. We’ll discuss lenders’ typical requirements for borrowers and the potential advantages and drawbacks of these loans. We’ll also take a look at the different types of home equity loans, including home equity lines of credit (HELOCs) and cash-out refinances.

How Do Home Equity Loans Work?

A home equity loan is one way a homeowner can borrow money against the equity in their home. If you’re not sure how much equity you have in your house, it’s easy to calculate: It’s the market value of your home minus the balance of your existing mortgage.

For example, if your house is worth $250,000 and you still owe $200,000 on your mortgage, you have $50,000 in equity. In general, lenders will loan you up to 85% or sometimes 90% of your home’s equity. In this example, you might be able to borrow up to $45,000. You can use a home equity loan calculator to help you determine your home equity and maximum loan amount.

Since home equity loans are secured by your home, their interest rates tend to be lower than rates for unsecured personal loans. Home equity loans usually have a term between five and 30 years, and the rates are most commonly fixed, which keeps your payments predictable. If you’ve been wondering how to get equity out of your home, a home equity loan could be an answer.

Where Do Home Equity Loan Interest Rates Originate?

Williamsville home equity loan interest rates, like rates nationally, are influenced by many different factors, some relating to the economic situation and some to your personal financial details.

For example, the Federal Reserve’s monetary policy, particularly changes to the federal funds rate, has a significant impact on the broader lending market. Lenders often set their base interest rates by adding a margin to the prime rate, which tends to follow the federal funds rate. If the prime rate increases, you’ll probably see rates for different types of home equity loans, including home equity loans, rise as well.

In addition, your credit score and debt-to-income (DTI) ratio influence the rate you’re offered. A higher credit score and a lower debt-to-income ratio will typically get you more favorable terms. Understanding these factors can help you make the best choice for your situation.

How Interest Rates Impact Affordability

One of the most important elements in determining the overall affordability of a home equity loan is the interest rate. A seemingly small difference in rates can have a major effect on your finances. Say you’re thinking about a $100,000 home equity loan with a 15-year repayment term. At an 8.50% interest rate, your monthly payment would be approximately $986, with total interest over the loan’s life adding up to $77,253.

But if that rate were just one percentage point higher, at 9.50%, your monthly payment would increase to around $1,044, and the total interest you’d pay would rise to about $87,960. That’s more than $10,700 extra you’d pay over those 15 years if you get the higher rate.

The chart below shows more about how changes in your loan amount, interest rate, and term interact to result in different monthly payments.

Loan Amount	Loan Term	Interest Rate	Monthly Payment
$100,000	20 years	8.00%	$836
	20 years	7.00%	$775
	10 years	8.00%	$1,213
	10 years	7.00%	$1,161
$50,000	20 years	8.00%	$418
	20 years	7.00%	$388
	10 years	8.00%	$607
	10 years	7.00%	$581
$25,000	20 years	8.00%	$209
	20 years	7.00%	$194
	10 years	8.00%	$303
	10 years	7.00%	$290

Fixed vs Adjustable Interest Rates

Home equity loans usually have fixed interest rates, meaning that your payments are exactly the same every month during the duration of the loan. This predictability is a plus for budgeting and long-term financial planning.

However, occasionally, these loans can come with adjustable rates. Adjustable rates may start off at a relatively low rate, but after a set initial period, the loan’s rate can change with the market. The rate’s adjustments create the potential for higher payments down the road – and a sense of unpredictability.

As you weigh your options, think about your financial situation and how you’d handle potential rate adjustments as well as your tolerance for uncertainty.

Home Equity Loan Rate Trends

Predicting interest rate movements with absolute certainty is impossible given the multitude of factors at play. However, by examining recent and historical patterns, we can glean some insights.

The prime rate is, as we’ve mentioned, guides home equity loan rates in Williamsville and across the nation, and it has seen its fair share of fluctuations in the past few years, shifting from a low of 3.25% in 2020 to a high of 8.50% in 2023.

Historical Prime Interest Rates

Since 2018, the prime rate has seen its share of ups and downs, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023. Take a look at the history of the prime rate to get a sense of how high or low it may go this year.

Source: TradingView.com

Historical Prime Interest Rates

Date	Prime Rate
9/19/2024	8.00%
7/27/2023	8.50%
5/4/2023	8.25%
3/23/2023	8.00%
2/2/2023	7.75%
12/15/2022	7.50%
11/3/2022	7.00%
9/22/2022	6.25%
7/28/2022	5.50%
6/16/2022	4.75%
5/5/2022	4.00%
3/17/2022	3.50%
3/16/2020	3.25%
3/4/2020	4.25%
10/31/2019	4.75%
9/19/2019	5.00%
8/1/2019	5.25%
12/20/2018	5.50%
9/27/2018	5.25%

Source: St. Louis Fed

Being aware of historical fluctuations and staying attuned to economic shifts can help you time your application as strategically as possible.

How to Qualify for the Lowest Rates

While you can’t control the prime rate, there is a lot you can do to secure the most favorable home equity loan rates in Williamsville. What you want to deliver to lenders, ideally, is a credit score of 700 or higher, a debt-to-income (DTI) ratio of no more than 50% (or better yet, 36% or less), a stable home value, and good home insurance.

Even if you haven’t decided yet on a HELOC vs. a home equity loan or even a cash-out refinance, the same strategies apply if you want to secure the most competitive interest rates and loan terms.

Maintain Sufficient Home Equity

In general, if you want a home equity loan, you’ll need to keep at least 20% equity in your home. If you’re not sure how much equity you have, it’s easy to calculate. Simply subtract your mortgage balance from your current home value. For instance, if you owe $200,000 on your mortgage but your home is valued at $250,000, you’ve got $50,000 in equity.

Most lenders will loan you up to 85% or 90% of your available equity. In this example, that translates to a loan for as much as $45,000.

A home equity loan calculator can help you assess how much you may be able to borrow.

Build a Strong Credit Score

To help you get the most favorable home equity loan rates, you’ll want a credit score of 680 or higher, with many lenders favoring an even more robust 700+. The better your score, the more it speaks to your financial prudence and the more likely it is to potentially lead to more favorable loan terms.

You can work to elevate your credit standing by being diligent about making payments on time, keeping credit card balances low, and avoiding new debt. Regularly perusing your credit report for inaccuracies and disputing any mistakes you find can also work in your favor. By maintaining a solid credit score, you can put yourself on the fast track to qualifying for lower home equity loan rates and more appealing loan terms.

Manage Debt-to-Income Ratio

Your debt-to-income (DTI) ratio is a key factor when it comes to securing a home equity loan with favorable rates. Lenders typically look for a DTI ratio below 50%, but the sweet spot is even lower, at 36% or less. You can calculate your DTI ratio for yourself by dividing your total monthly debt payments by your gross monthly income.

If you need to improve your DTI ratio, focus on paying down your debts, increasing your income, or, if you can, both. A lower DTI shows lenders that you have managed debt well and can handle more. It can make you a more appealing borrower and potentially convince lenders to offer you better rates and terms on your home equity loan.

Obtain Adequate Property Insurance

Property insurance is a necessity for home equity loans, especially in areas susceptible to natural calamities, like tornados, earthquakes, or floods. Lenders need to be certain that the property you’re using as collateral is safeguarded. Not only will it protect you in case of disaster, securing comprehensive property insurance may also help you snag more favorable home equity loan rates.

It’s a good idea to explore different insurance options to find the best rates and coverage, but be sure you’re including everything your potential lenders want to see covered.

Current home equity loan rates by state.

Compare current home equity loan interest rates by state and find a home equity loan rate that suits your financial goals.

Select a state to view current rates:

Tools & Calculators

Using online resources like these can empower you to make sound decisions about home equity loan rates and terms. A home equity loan calculator, for instance, can show you what your monthly payments would be based on the loan amount, interest rate, and term. By using online tools to weigh and compare various scenarios, you’re better equipped to pinpoint the best home equity loan rates and terms that align with your budget and financial situation.

Run the numbers on your home equity loan.

Home Equity Loan Calculator

Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.

Calculate
HELOC Payment Calculator

Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.

Calculate
HELOC Interest Only Calculator

Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .

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Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Ain payments shown depend on the accuracy of the information provided.

Closing Costs and Fees

When you get a home equity loan, you can expect the closing costs to run somewhere between 2% and 5% of the loan amount. The table below shows some typical closing costs.

Service	Typical Fees
Appraisal	$300-$500
Credit report	$30-$50 or more
Document prep	$100-$500
Loan origination	0.5%-1.0% of the loan amount
Notary	$20-$100
Title insurance	0.5%-1.0% of the loan amount
Title search	$75-$250 or more

While some lenders offer no-closing-cost loans, they often come with higher rates.

Tax Deductibility of Home Equity Loan Interest

Here’s a tip: The interest on your home equity loan might just be tax-deductible. For single filers, interest is deductible on the first $375,000 of loan debt. Married couples filing jointly can deduct the interest on up to $750,000 of debt. But remember that you can’t take the standard deduction if you want to claim this – you’ll need to itemize.

To get the most up-to-date information, talk to a qualified tax advisor, who can help you figure out what will make the most sense for your situation.

Alternatives to Home Equity Loans

While a home equity loan can be a solid choice, there are other options to explore that also allow you to tap your home’s equity. Two of these are home equity lines of credit (HELOCs) and cash-out refinances, a kind of mortgage refinance.

Home Equity Line of Credit (HELOC)

What is a home equity line of credit? A HELOC is like a credit card, but it’s backed by your home equity. It offers a flexible way to borrow funds up to a set limit, with interest payments required only on the amount you use. In the initial “draw” period, you may only need to pay interest on what you withdraw; during the repayment period, you’ll pay back the principal and any additional interest. HELOCs do typically come with variable interest rates, which can be challenging to work into your budget.

Lenders typically want to see a credit score of 680 or higher (700 is even better) and a debt-to-income ratio below 50% (though 36% or less is the sweet spot). They generally allow you to borrow up to 90% of your home equity.

If you’re comfortable with the ebb and flow of variable rates, a HELOC could be a good choice. To see what your monthly payments for a HELOC would be, consider using a HELOC monthly payment calculator. And to learn how much interest you pay during the “draw” period of a HELOC, try a HELOC interest-only calculator.

Cash-Out Refinance

A cash-out refinance could also be a strategic way to use your home equity to access cash. You replace your existing mortgage with a new that’s larger than what you owe, and take the difference as a lump sum.

If you’re comparing the benefits of a cash-out refinance vs. a home equity line of credit, consider the fact that requirements for borrowing tend to be different. It’s typically easier to qualify for a cash-out refi than for a home equity loan or a HELOC. Cash-out refinances usually require a minimum credit score of 620 and a DTI ratio of 43% or less. They can have either fixed or variable interest rates, with variable rates sometimes offering more equity access.

And remember: A cash-out refi means you have one single monthly payment, which can make it easier to budget.

The Takeaway

When you’re contemplating a home equity loan in Williamsville, it’s essential to understand the factors that influence home equity loan rates. Building a robust credit score, managing your debt effectively, and ensuring you have adequate property insurance are all key steps to securing the most favorable rates. Alternatives like HELOCs and cash-out refinances offer different features and requirements, so it’s a good idea to compare them with home equity loans, too, to find the most suitable option for your financial goals.

SoFi now offers home equity loans. Access up to 85%, or $750,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.

Unlock your home’s value with a home equity loan from SoFi.

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FAQ

What can you do with a home equity loan?

Home equity loans are versatile tools that can be used for a variety of purposes, from large purchases to home renovations, educational expenses, medical bills, and even debt consolidation. They provide a lump sum that you repay in fixed payments over a set term. Before you take out a home equity loan, be sure it aligns with your financial goals and that you understand the risks involved, such as potential foreclosure if you can’t make the payments.

What might your monthly payments look like on a $50,000 loan?

Your monthly payment on a $50,000 home equity loan depends on the loan term and interest rate. For example, with a loan at a 7.00% interest rate over 15 years, the monthly payment will be about $449. At an 8.50% interest rate over 15 years, the payment will be around $492. You can use an online loan calculator to help you figure out what payments might result from different loan terms.

What might prevent you from being approved for a home equity loan?

There are several reasons that you might not be approved for a home equity loan. For one, most lenders require a minimum credit score of 680 (700 or higher for the most competitive rates), so a low credit score could be a dealbreaker. A high debt-to-income ratio, typically more than 50%, could also be a problem. And you’ll need to have a healthy amount of home equity, usually at least 20%. If you can, it’s smart to spend a little time assessing your financial position, working on your credit score, and paying down your debts before applying.

What are the perks of a home equity loan?

Home equity loans can have a number of perks. You get a lump sum that you usually pay back at a fixed interest rate, which means you have a predictable monthly payment to make and can plan your budget effectively. Since your home secures the loan, you’ll generally get a lower interest rate than you might with an unsecured personal loan. And the interest may be tax-deductible.

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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

^²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

SOHL-Q225-296

Browse Missouri home guides.

Browse home equity loan rates by state guides.

More home equity resources.

What is a Home Equity Line of Credit

Learn more
Different Types of Home Equity Loans

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HELOC vs Home Equity Loan: How They Compare

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SoFi Blog

Tips and news—for your financial moves.

Compare HELOC rates in Sacramento.

Introduction to HELOC Rates

What Is a HELOC?

The Draw Period

The Repayment Period

Where Do HELOC Interest Rates Come From?

Variable vs. Fixed Interest Rates

How Interest Rates Impact HELOC Affordability

HELOC Interest Rate Trends

Historical Prime Interest Rate

Tools & Calculators

How to Qualify for a Competitive HELOC Rate

Improve Your Credit Score

Calculate Your Debt-to-Income Ratio (DTI)

Current HELOC rates by state.

Application Process for a HELOC in California

Step 1. Run the numbers.

Step 2. Compare lenders.

Step 3: Submit your application.

Step 4: Get an appraisal.

Step 5: Prepare for closing.

Tax Benefits and Considerations

Closing Costs and Fees

Alternatives to HELOCs

Home Equity Loan

Cash-Out Refinance

Personal Loan

The Takeaway

FAQ

What is the monthly payment on a $50,000 HELOC?

Is a HELOC a good idea right now?

What is the monthly payment on a $100,000 HELOC?

What are the benefits of a HELOC?

Do you need an appraisal for a HELOC?

What disqualifies you from getting a home equity loan?

How difficult is it to get a HELOC?

Does HELOC affect credit score?

More HELOC resources.

Washington First-Time Home-Buying Assistance Programs & Grants

On this page:

On this page:

Who Is Considered a First-Time Homebuyer in Washington?

3 Washington Programs for First-Time Homebuyers

1. WSHFC: Home Advantage Program

2. WSHFC: House Key Opportunity Program

3. WSHFC: Down Payment Assistance

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How to Apply to Washington Programs for First-Time Homebuyers

Federal Programs for First-Time Homebuyers

Federal Housing Administration (FHA) Loans

Freddie Mac Home Possible Mortgages

Fannie Mae HomeReady Mortgages

Fannie Mae Standard 97 LTV Loan

Department of Veterans Affairs (VA) Loans

Native American Veteran Direct Loans (NADLs)

US Department of Agriculture (USDA) Loans

HUD Good Neighbor Next Door Program

First-Time Homebuyer Stats for 2025

Financing Tips for First-Time Homebuyers

The Takeaway

FAQ

Should I take first-time homebuyer classes?

Do first-time homebuyers with bad credit qualify for homeownership assistance?

Is there a first-time veteran homebuyer assistance program in Washington?

What credit score do I need for first-time homebuyer assistance in Washington?

What is the average age of first-time homebuyers in Washington?

Young, Smart, and Trying Not to Go Broke

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Compare home equity loan rates in Kansas City.

Introduction to Home Equity Loan Rates

How Do Home Equity Loans Work?

Where Do Home Equity Loan Interest Rates Originate?

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