First-time homebuyer programs and grants in Washington
Senior Content Writer
Quick insights
- Washington first-time homebuyer programs include Home Advantage, House Key Opportunity, the Covenant Homeownership Program and HomeChoice.
- Assistance options for first-time homebuyers may come as grants, forgivable assistance or deferred loans, which are distinct forms of assistance. Most Washington State Housing Finance Commission (WSHFC) assistance is structured as a payment-deferred second loan, for example.
- Interest, repayment and potential forgiveness vary by program, and buyers generally must complete an approved homebuyer education course to access certain programs.
Becoming a homeowner in Washington can look different depending on where your search takes you. Maybe you’re drawn to the vibrant energy of Seattle, the arts and waterfront views in Tacoma or the wide-open landscapes around Spokane. No matter the backdrop, Washington offers programs and grants that can help eligible homebuyers manage upfront costs and navigate financing with more confidence.
In this article, we’ll break down the key programs, grants and assistance options available to first-time homebuyers across Washington.
Washington first-time homebuyer programs
The Washington State Housing Finance Commission (WSHFC) offers mortgage and down payment assistance programs through Commission-trained lenders. Its primary mortgage options include Home Advantage and House Key Opportunity, which can be paired with qualifying assistance programs.
Home Advantage
The Home Advantage Down Payment Assistance (DPA) program offers mortgage financing that can be combined with a WSHFC down payment assistance option. First-time homebuyer status is not required for the standard Home Advantage down payment assistance program. Eligible buyers may receive assistance equal to 3%, 4% or 5% of the first mortgage amount.
The assistance comes as a 0% interest, payment-deferred second loan and may be used toward the down payment and closing costs. Household income generally cannot exceed $215,000 under the standard Home Advantage DPA program.
No monthly payment is required on the assistance loan. The balance generally becomes due if the borrower sells, refinances the home, transfers the property, stops using it as a primary residence or pays off the first mortgage.
Home Advantage Needs-Based down payment assistance
The Home Advantage Needs-Based program may provide in down payment assistance at a simple interest calculation for qualifying buyers. Simple interest means the extra fee is calculated only on the starting amount you borrowed, not on accumulated interest. Income limits apply and vary by location.
A needs assessment is typically required, except for qualifying military veterans. Like other WSHFC assistance, the loan does not require monthly payments but may become due after certain events, such as selling or refinancing the home. Here’s a breakdown:
House Key Opportunity
The House Key Opportunity program is designed for qualifying first-time homebuyers or buyers purchasing in eligible Target Areas. This down payment assistance program may provide up to $15,000 at 1% simple interest. Applicants must:
- Meet household income limits based on location and household size.
- Complete a WSHFC-approved homebuyer education course.
- Purchase and occupy the home as their primary residence.
- Meet the mortgage and property requirements for the program.
WSHFC typically defines a first-time homebuyer for House Key as someone who has not owned and occupied a primary residence during the previous three years. Certain veterans and homebuyers purchasing in Target Areas may be exempt from the first-time homebuyer requirement.
Covenant Homeownership Program
The Covenant Homeownership Program may provide eligible first-time homebuyers with a 0% interest loan of up to 20% of the cost of the home, capped at $150,000 plus qualifying closing costs. Eligibility is tied to specific family-history, residency, income and first-time homebuyer requirements established under Washington’s Covenant Homeownership Act. Typically, the buyer or a family member must have lived in Washington before 1968.
For qualifying households that earned below 80% of area median income at the time of purchase, the down payment assistance loan may be eligible for forgiveness after five years, subject to program requirements, such as a pre-reservation process before beginning their home search. This includes lender preapproval, homebuyer education and required family-history documentation.
HomeChoice Down Payment Assistance
The HomeChoice program may provide up to $15,000 in down payment and closing cost assistance for eligible buyers who have a disability or have a family member with a qualifying disability living with them.
Buyers generally must meet income requirements, complete homebuyer education and attend one-on-one pre-purchase counseling. First-time homebuyer status is generally required unless the property is in a qualifying target area.
Veterans Down Payment Assistance
Eligible Washington veterans may receive up to $10,000 in down payment assistance at 3% interest when paired with an eligible Home Advantage or House Key Opportunity mortgage. The program may serve honorably discharged veterans, certain National Guard or Reserve members and qualifying surviving family members. Income, first-time homebuyer and property requirements apply.
One important note: WSHFC does not currently offer new Mortgage Credit Certificates for home purchases. However, homeowners with existing MCCs may be able to have them reissued after refinancing when requirements are met.
Regional and city homebuyer programs in Washington
Washington buyers may also find assistance through city, county and nonprofit programs. Below are several potential options. Note that funding and application availability can change.
Seattle Homebuyer Assistance
The City of Seattle provides homebuyer assistance through nonprofit and lending partners for households generally earning no more than 80% of area median income. City guidelines currently allow up to $76,000 per household for qualifying open-market purchases.
Buyers generally must be first-time homebuyers, complete approved homebuyer education and one-on-one counseling, purchase within Seattle city limits and use the property as their primary residence.
Some Seattle partners may offer their own assistance structures. For example, HomeSight may provide qualified first-time buyers with access to as much as $70,000 in purchase assistance, depending on eligibility and funding.
ARCH East King County Down Payment Assistance
The ARCH Down Payment Assistance Program may provide up to $30,000 at 4% simple interest for eligible buyers purchasing in participating East King County communities such as Bellevue, Kirkland, Redmond and Issaquah.
Buyers generally must meet household income and property-price limits and contribute 2% of the purchase price, although a portion of that contribution may come from gift funds. First-time homebuyer status is not required.
Tacoma and Pierce County
Tacoma/Pierce County Habitat for Humanity offers a homebuyer program for qualifying Pierce County residents. Current program information lists homes priced below $300,000 and down payments starting around $3,000, with income, credit and homebuyer education requirements.
Applying to Washington first-time homebuyer programs
Here are several steps that can help you plan to buy a home using a Washington first-time homebuyer program.
- Estimate affordability. Review your income, monthly debt, credit and savings to understand what housing costs may fit your budget. A homebuyer assistance calculator can help you consider your down payment, closing costs, prepaid taxes and insurance alongside potential assistance.
- Consider mortgage preapproval. Getting preapproved typically involves a more detailed review of your income, credit score, assets and debts and may help clarify your financing range before you make an offer.
- Compare programs. A larger assistance amount could come with different interest, repayment, income or occupancy requirements. Before choosing a program, it’s important to compare the requirements, assistance amount and repayment terms.
- Find a Commission-trained lender. WSHFC programs are accessed through participating lenders who can help determine which mortgage and assistance options may fit your circumstances.
- Understand repayment terms. Many Washington assistance programs are deferred loans rather than grants. Review what may happen if you sell, refinance, move or pay off the mortgage.
- Take the WSHFC homebuyer education course. Commission assistance programs generally require an approved class, and free WSHFC-sponsored options are available throughout the state. Once you’ve chosen a WSHFC option, before or during your first discussions with a lender, you can take this course.
- Check for local options. Buyers in Seattle, East King County, Tacoma and other areas may have access to additional assistance beyond statewide programs.
- Review the property requirements. Income limits, purchase-price limits, location restrictions and primary-residence requirements can vary by program.
In summary
Washington has first-time homebuyer programs and assistance options with very different eligibility rules. It can be helpful to narrow down your strategy before you start seriously shopping. Programs offered statewide can provide qualifying buyers with assistance under specific eligibility rules. Local programs in Seattle, East King County and the Tacoma area may expand those options depending on where you plan to buy.
Program terms and eligibility are subject to change. For the latest information on specific programs, go to heretohome.org/downpayment-assistanceOpens overlay.
For help as you begin your homebuying journey, consider connecting with a Home Lending Advisor in Washington.
