ARCH Home Ownership Program FAQ’s

Your household must fall below the maximum income limit set for the home you are interested in purchasing. ARCH uses a method of calculating income that is based on projected income for the current year. See this chart for the income limits based on your household size here.

ARCH offers the ARCH East King County Downpayment Assistance Loan Program through the Washington State Housing Finance Commission. The Washington State Housing Finance Commission offers and administers various down payment assistance programs to eligible homebuyers, including the ARCH Downpayment Assistance Loan Program. Please note that the ARCH East King County Downpayment Assistance Loan Program is a second mortgage loan program and must combine with the Home Advantage or Opportunity first mortgage loan programs. Learn more details about these programs here.

ARCH does not have a down payment requirement. Please check with your loan officer to decide what works best for you based on your financial situation. The Washington State Housing Finance Commission offers various down payment assistance programs to eligible homebuyers. Check to see if you are qualified for any of these programs here.

Your future resale prices are set by a formula based on various indexes. Depending on the project agreement, your appreciation index could be the Consumer Price Index (CPI), the real estate index, HUD Seattle/King County Median Income, or an average of the Real Estate Index and the HUD Seattle/King County Median Income. To find out the appreciation index of the ARCH unit you’re interested in purchasing, please contact our office.

No, ARCH determines the maximum price based on a formula stipulated in the resale covenant. Seller cannot sell for more than what the maximum resale price is allowed based on the formula, which is provided by ARCH. No tactics for increasing the purchase price such as the sale of furniture or cash outside the contract is permitted.

Seller must pay buyer/seller real estate agent commissions. Additionally, seller must pay all seller closing costs including, excise tax, owner’s title insurance, a portion of escrow fees, and any miscellaneous costs associated with unpaid balances on utility, homeowner’s association or other items. Buyer cannot pay sellers closing costs, agent fees or any other financial incentives as part of their offer.

Depending on the project agreement, the resale control agreement (aka the Covenant) is normally in effect for 30 or 50 years. However, the first sale after the covenant expires may still be restricted.

You can download a full copy of the resale covenant and a summary of important provisions here.

ARCH staff will prepare a resale covenant for the buyers to sign at escrow. The resale covenant will be sent to your escrow closer a week prior to the closing day.

ARCH does not have a priority list for the resale homes. ARCH keeps a mailing list and will notify our list when a new home is on the market. However, if you are interested in purchasing a particular resale home, please contact the listing agent or the seller directly.

All purchase offers must include an inspection contingency, and a licensed inspector must complete a home inspection. A copy of the inspection report and a copy of the inspection response form (35R) must be provided to ARCH staff prior to closing. ARCH will review the inspection and require that deferred maintenance items must be addressed prior to closing by the seller.

The ARCH marketing emails are sent to those who meet the eligibility requirements for the unit(s) being marketed. Some of the program criteria include income limits and household size. You may not receive an email from ARCH if your household does not fit the eligibility criteria for the home being marketed.

The income verification process starts after you have a mutually accepted agreement with a seller. As soon as you have a signed contract, please send a copy of your purchase and sale agreement to ARCH immediately. ARCH staff will provide instructions to you on how to submit an online application. ARCH staff will not process your application without a signed purchase and sale agreement.

Your eligibility will be reviewed at the time of purchase. Changes in your future income will not affect your eligibility as current ARCH homeowners.

ARCH uses HUD’s definition of first-time homebuyer. According to the U.S. Department of Housing and Urban Development (HUD)'s definition of a first-time homebuyer, even people who've owned a home in the past may be qualified as first-time homebuyer. HUD defines a first-time homebuyer as any of the following:

• An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if meets the above test, they are considered first-time homebuyers).

• A single parent who has only owned with a former spouse while married.

• An individual who is a displaced homemaker and has only owned with a spouse.

• An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.

• An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.

Yes, you can gift the home to your spouse and/or children through a will. The covenant restrictions will continue upon the transfer of title. Your spouse and/or children can either occupy the ARCH home as their primary residence (they do not need to meet income qualifications) or they can sell the home under the ARCH restrictions and keep the proceeds. For more details, please see Section 6.2 of the resale restrictive covenant here. Homeowners who are interested in this should consult with an estate planning attorney.

Once ARCH staff compile a priority list for a new construction home, we will contact the first household on the priority list via email to start the income verification process. Prospective buyers are required to provide all required income documentation to ARCH staff within 24 hours. Please note it could take up to two weeks to identify a final eligible buyer.

Your Homebuyer Education Certificate is good for two years.

ARCH uses scoring criteria when multiple households are eligible to purchase a home but there are limited homes available. This model assigns points for various criteria such as living in King County and all areas of Bothell, household size, and approval for specific homeownership assistance programs.  Applicants must be first-time homebuyers. 

New Construction Buyer Selection Points

• Income (0-2 points)  

• Household size (0-2 points)  

• Residence in King County or anywhere in Bothell (1 point)  

• Approved Homeownership Assistance Program* (pilot program- 1 point) 

• ADA homes prioritized for households who benefit from accessibility features 

In the event of a tie, a lottery will be used to determine which households will move forward with a purchase. ARCH staff will notify top scoring applicants and invite them to observe the lottery process via a Zoom meeting. For those who are not able to attend, ARCH staff will send out lottery results. ARCH staff will verify all buyer scoring criteria prior to purchase. 

*ARCH has identified three homeownership assistance programs that a) focus on populations who are underrepresented in their rates of homeownership; b) provide significant financial assistance, for example, purchase assistance up to or exceeding 20% of the cost of the home, or long-term mortgage assistance. ARCH buyers who are working with a lender and have received full approval for one of the programs will receive one point when applying for a new construction home. To get yourself prepared to purchase an ARCH home and learn about eligible Homeownership Assistance Programs, check out our How to Apply page.  

Once ARCH staff compile a priority list of applicants for a new construction home, we will contact the top scoring applicants on the list with lottery details and an invitation to attend the lottery via Zoom. If you are a top scoring applicant and are unable to attend the Zoom lottery the results will be recorded and ARCH staff will send to all applicants via email. The household selected in the lottery process will be provided with a link to the ARCH application to verify both their eligibility for the ARCH program and all assigned points. Prospective buyers must provide all the required documentation to ARCH staff within 48 hours. Please note it could take up to three weeks to identify a final eligible buyer.  

ARCH does not ask about immigration or citizenship status in our applications. Learn more here: https://www.archhousing.org/welcoming-immigrants-and-refugees.