Liberty Commons Condominium – Affordable Homeownership
Habitat for Humanity has a long, storied history of providing affordable homeownership opportunities throughout the world. In the greater Seattle area, Habitat for Humanity has developed numerous homes including single family houses, townhomes, co-operative housing, and most recently, providing affordable condominium homes.
One of its most prominent condominium projects in Seattle is the recently completed Liberty Commons in Columbia City located at 5022 Martin Luther King Jr Way South. Liberty Commons features 58 handsomely finished condominium homes with mix of layouts and home options including studios, one-bedrooms and two-bedroom homes.
Although Liberty Commons does not have on-site parking, it is conveniently located two blocks from the Columbia City Light Rail Station. And, just three blocks from Columbia City’s urban village center bustling with shops, restaurants, cafes, entertainment, grocery and more. The building also has a large secured bike storage room and outside courtyard.
The Homes
The homes are well-appointed with modern finishes and color pallets. Every home comes with stainless steel kitchen appliances, in-unit washer and dryer and HVAC heating and cooling systems.
Studios: There are 5 studio units at 405 square feet. The studios start from $162,000 with an estimated monthly payment between $1,282 to $1,585. A minimum $3,000 down payment is required.
One-bedrooms: There are 26 one-bedroom homes ranging from 459 to 612 square feet. The one-bedroom units start from $220,000 with an estimated monthly payment of $1,697 to $2,548. A minimum $4,000 down payment is required.
Two-bedrooms: The 27 two-bedroom homes range in size from 634 to 815 square feet. The two-bedroom homes start from $285,000 with an estimated monthly payment of $2,163 – $3,272. A minimum $5,000 down payment is required.
The estimated monthly prices above include principal, interest, taxes, insurance and HOA dues.
Homeownership Purchase Qualifications
As an affordable homeownership development, Habitat for Humanity has buyer qualification requirements and unique procedures for Liberty Commons purchases.
Partnership with Habitat
Habitat for Humanity is known for having new homebuyers provide “sweat equity” by helping with hands-on labor during the construction phase. For this project, homebuyers will instead partner through various other options to be completed within the first year of ownership – volunteering with Habitat for Humanity, advocating by sharing their story with affordable housing, attending homeownership classes or by building community with their new neighbors.
Buyer & Residency Status
Buyers must be first-time homebuyers (may not have owned a home in the past 3 years) and live or work in King County. The property must be a primary residence and may not be rented out. Homeowners may work from home, however, running an in-home business with foot traffic is prohibited.
Income Limits & Payments
Homebuyers total annual gross income must be at or below the maximum income for their household size and earn a minimum of $40,000 to afford the minimum payment.
- 1 person – the gross maximum income is $81,700
- 2 people – the gross maximum income is $93,350
- 3 people – the gross maximum income is $105,000
- 4 people – the gross maximum income is $116,650
- 5 poeple – the gross maxmium income is $126,000
Liberty Commons has very low downpayment requirements, ranging from $3,000 to $5,000. To reserve a home, buyers will need to place a $2,000 non-refundable deposit that is applied towards the down payment.
Due to its unique affordability program, some buyers may be required to provide a higher cash contribution depending on their liquidity. Buyers who have liquid assets greater than $15,000 must contribute any amount over $15,000 towards the purchase.
For instance, if a buyer has $25,000 in savings, the buyer’s cash contribution / down payment will be $10,000, the amount exceeding the $15,000 limit. Therefore, if this buyer is purchasing a one-bedroom home, their contribution will be $10,000 instead of the $4,000 minimum.
Financing requires a Washington State Housing Finance Commission conventional Fannie Mae mortgage loan, which features special below-market interest rates and no mortgage insurance. Buyers may also qualify for down payment assistance programs. Cash purchases are not allowed.
Selling Requirements
As a non-profit organization providing affordable housing on an ongoing basis, Habitat has a restriction on selling. When homeowners decide to sell, they are required to sell the home back to Habitat for Humanity. Equity is limited to 1.5% appreciation per year of homeownership, which the homeowners will receive when they sell their home. This process eliminates the state’s excise tax on real estate sales and there are no real estate fees incurred by the homeowner when they sell. This can save the homeowner tens of thousands of dollars when selling.
This process allows the homeowners to build equity and for Habitat to continue offering low-cost affordable housing to another buyer. The homeowner can then use their earned equity to purchase their next market rate home.
What to Learn More?
For more information and to learn more about this property! Drop us a note or inquire about this property.
Note: We are not affiliated with Liberty Commons. Although, we are affiliated with Keller Williams Greater Seattle, the listing brokerage for Liberty Commons.
