Affordable Housing Options in Redmond

Homeownership is often decided based on the simple formula of income versus the cost of housing. In the past two years  increasing real estate values combined with increasing interest rates are outpacing the growth in income for average homebuyers. This affects how much home one can afford. Homebuyers have to pay more to get what they want, or see themselves priced out of the market to buyers with stronger financial assets.

An alternative for those whose buying power creates certain limitations on the Eastside are ARCH (A Regional Coalition for Housing) properties. ARCH has been created as a coalition of Eastside cities to plan for development that would include new housing for families with middle to low income.  These single family homes and condominiums are sold to buyers that meet a certain income criteria at or below market values with covenants in place to allow future owners to buy on similar terms. Eliminating investors and better financially-positioned buyers, allows those qualifying for the program to purchase under less pressure and enjoy the long term benefits of homeownership. The covenants restricting the eligibility have an expiration date after which homes are no longer limited in the resale process. In order for the properties to be kept affordably priced for the duration of the covenant, there are different applicable appreciation formulas to allow the homeowner to enjoy the upward market move, but with some limitations. Any buyer considering an ARCH property should weigh the pros and cons carefully.

Washington State Financial Housing Commission (www.wsfhc.org) is also offering  financing assistance to homebuyers based on certain income, occupation and other criteria that encourages homeownership to people who would have difficulty buying a house otherwise. This assistance can be in a form of a 0% interest loan to cover the down payment and parts of closing expenses. To learn more about these programs, check the website and take a Homebuyer Seminar required of those who wish to qualify for eligibility (seminar dates and locations can be found on the website, or contact the author for details) and talk to your mortgage professional.

In the city of Redmond, most ARCH properties are located on the Redmond Ridge and are represented by single family homes and condominiums. Currently under construction is The Cascara at the Villages, offering 2-bedroom townhome style condominiums to those of 55+ in age with prices in the low 300’s. To inquire about these properties you may contact ARCH (www.archhousing.org) or your real estate agent.