In coming months, Spokane Neighborhood Action Programs (SNAP) will be helping about 40 low-income families become homeowners.

The Spokane organization recently received $325,000 from Washington state to provide down-payment assistance to low-income, first-time homebuyers. Peggy Burrell, housing counseling program coordinator for SNAP, said the money will be divided into 20 loans of $16,250 each.

In addition, SNAP administers similar programs for the city of Spokane and Spokane County through which it’s expected to give out 17 loans this year, 10 for people who buy homes in the unincorporated county and seven for people who buy in community development zones within the city of Spokane. The county loans are $15,000 each, and the city loans are $10,000 apiece.

With each of these programs, a homebuyer is still eligible for the federal first-time home buyer tax credit – assuming they come to terms on a home purchase before the end of April. Those incentives, coupled with some market conditions, make it a good time for low-income families to consider home ownership, Burrell said.

“Interest rates are still low, and home prices have come down somewhat,” she said. “It’s a great combination.”

To be eligible for one of the down-payment assistance programs, a household must have a gross income that’s no more than 80 percent of median income in Spokane County. For a two-person household, the maximum gross income is $3,208 per month; for a four-person household, that maximum is $4,013 a month.

Burrell said the prospective home buyers must provide a down payment from their own savings that’s equal to 3 percent of the purchase price. Also, they must secure fixed-rate financing for the home and use the home as their primary residence.

The loans are what Burrell refers to as “silent second mortgages,” meaning payment of the loans is deferred until the home is sold, refinanced or if the home is used for something other than a primary residence. With the city program, a loan is forgiven if the homeowner stays in the house for more than 10 years.

The program applies only to homes that are a quarter of an acre or less and are priced below $240,000. Realistically, most people buy homes that cost substantially less than the maximum, Burrell said.

“I don’t think we’ve had anybody get even close to that level,” she said, adding that the typical buyer who takes advantage of this program buys a house for less then $150,000.

It’s possible SNAP could dole out assistance beyond the 37 loans already slated. The organization has handled the down-payment assistance program for seven years. For the past six years, the organization has placed repaid loans into a revolving loan fund, which is used to make more loans when demand warrants it. By doing so, the organization is slowly able to grow the program.

In addition to the down-payment assistance, SNAP offers pre- and post-purchase financial counseling, as well as foreclosure-prevention classes.

“And I should tell you, we have been busy with that,” Burrell said.

For more information on SNAP programs, go to www.snapwa.org or call 509-456-7111.