Deferred Payment Loan
The Deferred Payment Loan helps you repair the home that you own and live in so that you can feel safe and secure. If your home needs a new roof, the furnace is old and failing, the lights flicker, the pipes leak, or you need to make accessibility modifications, this may be the loan for you.
The Deferred Payment Loan can provide up to $25,000. The loan has a zero percent interest rate and does not require you to make payments, so it is very different from a traditional bank loan. However, we do secure a mortgage document to your property.
The loan must be paid off: 1) When you sell or transfer the property to a new owner; or 2) If you move out of the home and it is no longer your primary residence. If you borrow money against your home after you receive a housing repair loan, your new lender may require that the King County loan be paid off.
The Housing Repair Program does not charge a fee for this service. There may be fees incidental to this service, such as the cost of getting an appraisal of your property and/or a title report. Those fees can be included in your loan and are usually less than $175.00.
Eligible homeowners are those who:
- Own and live in the home they want to repair
- Live in King County, outside the city limits of the City of Seattle and Normandy Park. (Note: The City of Seattle has its own housing repair program. Click here to be transferred. Also, residents of Bellevue, Kent, Federal Way and Auburn must be referred by their city's respective program.)
- Have an eligible household income level - click here to see if you are income eligible
- Do not have assets that exceed $40,000, not counting the value of your home. Applicants with a long-term disability or over the age of 55 years are exempt from this guideline, as long as the asset does not generate income that exceeds the HUD annual income limits.
- Have sufficient home equity - the total proposed amount that you will owe against your property must be less than 90% of the total property value. Exceptions to the equity requirement for sever emergency or health and safety conditions are reviewed on a case by case basis.
We can help you determine if you meet all the eligibility requirements that may apply.
How to Apply for Service
Call 206-263-9095 between 8:00 a.m. and 3:00 p.m., Monday through Friday.
Click here for a list of things you will be asked to share when you call.
Overview of Application and Repair Process
After a housing repair phone application is taken, you will send in the required financial documentation needed to complete the initial application process. After you have sent your information to us, we will visit you, in the comfort of your own home during normal business hours to assess the repair work. Housing Repair Program staff will then assist you with the process of contracting with a private construction contractor of your choice. The private contractor will perform all of the work on your home. Finally, Housing Repair Program will provide the payment(s) directly to the contractor once you have approved the work and Housing Repair Program staff have inspected the work.