Homesight

What it reported doing in 2024

Homebuyer services & lending: homesight's homebuyer education and counseling programs serve nearly 350 households annually, including new and existing customers. In 2024, of these customers, 94% were at or below 80% percent of the area median income. Homesight's mission is to serve primarily moderate-income families wishing to purchase their first home, but as a hud-certified housing counseling one-on-one agency, it cannot discriminate based on income. Its homebuyer program consists of counseling and no-cost classes on achieving the dream of homeownership, or an online buyer education curriculum for a nominal fee.homesight developed its revolving loan fund in 1991 to address the growing gap between family incomes and home prices. It offers purchase assistance loans funded by public and private investments to package highly competitive amortizing or deferred second loans and deferred third loans for low- and moderate-income homebuyers. This structure allows homesight to minimize or eliminate the requirement for fha or private mortgage insurance for its customers thereby increasing the buying power of low- and moderate-income first-time homebuyers. Homesight is a "correspondent" 1st mortgage lender to the Washington state housing finance commission, a local community bank, and a neighborworks america partner. In 2024, homesight originated over $9.5 million in 1st mortgage loans with its capital primarily for subsequent sale to these lenders. Through these channels homesight provides quality, low-interest down-payment options and more flexible case-by-case underwriting that allows many mortgage-eligible customers to access credit that would not be available to them otherwise. In 2020, homesight was approved by the us department of treasury - cdfi fund to expand the target market to african americans (aa) in king, pierce, and snohomish counties. Since this addition, homesight has fought against redlining and gentrification of aa's in the seattle area by introducing lending programs such as the sam smith hi neighbor homeownership fund (sshnhf) and the social justice (sj) dpa program. The sshnhf helps aa's between 80-120% area median income, purchase homes across Washington state by offering down payment assistance up to $20,000 at 3% deferred for 30 years. Homesight has partnered with windermere, us bank, and nareb to pioneer this innovative program. As housing prices continue to skyrocket and interest rates creep up, homesight has made it a mission to support bipoc communities. Homesight is supporting bipoc first time home buyers by offering the social justice dpa program. The program includes $10,000 deferred down payment assistance at 0% for 30 years. The $3 million sj dpa fund will help 300 bipoc families purchase homes in Washington state. In 2021, homesight launched a couple of different mortgage loan programs to further support bipoc communities. Homesight now offers a vista (itin) loan program and a sharia compliant loan program. The vista loan is aimed at helping those without traditional social security numbers purchase homes. The vista loan program only requires a 5% down payment by the borrower. This is much friendlier than the other itin programs around which require 10% to 30% down. Homesight was also approved by the Washington state housing finance commission to fund and sell sharia compliant first mortgages. There is a large islamic population in seattle that needs support in purchasing first homes. Homesight was exclusively approved by the wshfc to offer these loans. Homesight partnered with ijara cdc to offer this innovative, interest free, and sharia compliant loans. Together with our partners we hope to make a difference for first-time homebuyers in this housing market in Washington state.

Financial Efficiency

• Mission deployment rate: 31.3%; rating input score 31
• Program expense ratio: 56.3%; rating input score 56
• Fundraising efficiency: $26.31 raised per $1 spent on fundraising; rating input score 66; 66th percentile among comparable filings

Transparency & Controls

• Consistency checks: 93.8%; rating input score 94; 20th percentile among comparable filings
• Pay-setting controls: 1 of 6 controls in place; rating input score 17
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Missing
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 91.7%; rating input score 92; 22nd percentile among comparable filings
• Governance controls: 7 of 8 controls in place; rating input score 88
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: NotApplicable
  • Form 990 shared with the board: Fail
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 42.1%; rating input score 90; 90th percentile among comparable filings
• Total-asset coverage ratio: 16.37; rating input score 94; 94th percentile among comparable filings
• Liabilities to assets ratio: 0.25; rating input score 39; 39th percentile among comparable filings
• Officer compensation ratio: 22.1%; rating input score 10; 10th percentile among comparable filings

Growth

• Program expense growth: 2.1% per year; rating input score 100; 22nd percentile among comparable filings
• Revenue growth: 4.8% per year; rating input score 100; 40th percentile among comparable filings
• Asset growth: 4.3% per year; rating input score 100; 31st percentile among comparable filings