First-Time Home Buyer Programs in Washington

Washington State Housing Finance Commission (WSHFC) Programs:

Home Advantage Program:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years), veterans, or buyers in targeted areas (e.g., qualified census tracts); eligible properties include single-family homes, condos, townhomes, manufactured homes on owned land, or double-wide mobile homes on permanent foundations.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed $180,000 in high-cost counties (e.g., King); lower limits apply elsewhere (e.g., $135,000 in Pierce County).
• Minimum credit score of 620 (640 for conventional, 680 for streamlined processing).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course (5 hours, free through WSHFC or ~$50 online) required.
• Purchase price limit of $563,500 (non-targeted areas) or $688,250 (targeted areas); lower limits in some counties (e.g., $431,650 in Spokane).
• Minimum borrower contribution of $1,000 plus one month’s housing cost reserves for conventional loans.

Learn more about Home Advantage Program

Home Advantage Down Payment Assistance (DPA):

Benefits: Offers up to 5% of the first mortgage amount (e.g., $10,000 on a $200,000 loan) as a 0% interest, no-monthly-payment second mortgage (repayable upon sale, refinance, or after 30 years) for down payment and closing costs; Needs-Based DPA offers up to $15,000 at 1% interest for incomes ≤80% AMI (e.g., $97,700 for a family of four in King County).
Eligibility: Must use a Home Advantage first mortgage; same income and purchase price limits apply; homebuyer education required.

Learn more about Home Advantage DPA

House Key Opportunity Program:

Description: Provides up to $15,000 as a second mortgage (1% simple interest, deferred for 30 years) for down payment and closing costs; targets low-income first-time buyers, veterans, or buyers in targeted areas.
Requirements: Income capped at 80% AMI (e.g., $97,700 in King County, $73,150 in Pierce County for a family of four); minimum credit score of 620; homebuyer education required; must pair with a WSHFC first mortgage.

Learn more about House Key Opportunity Program

Covenant Homeownership Program:

Description: Offers up to $150,000 as a 0% interest, no-monthly-payment second mortgage (repayable upon sale or refinance) for down payment and closing costs; targets first-time buyers or descendants of Black, Hispanic, Native American, Alaska Native, Native Hawaiian, Pacific Islander, Korean, or Asian Indian residents in Washington before April 1968. Loan forgiveness available for incomes ≤80% AMI after 5 years (effective July 27, 2025).
Requirements: Income capped at 120% AMI (e.g., $146,550 in King County, effective July 28, 2025); minimum credit score of 620; homebuyer education required; must pair with a WSHFC first mortgage.

Learn more about Covenant Homeownership Program

HomeChoice DPA:

Description: Offers up to $15,000 as a 1% interest, 30-year deferred second mortgage for buyers or household members with disabilities; combines with Home Advantage or House Key first mortgages.
Requirements: Same income and purchase price limits as Home Advantage; minimum credit score of 620; homebuyer education required; proof of disability required.

Learn more about HomeChoice DPA

Veterans Downpayment Assistance Loan:

Description: Offers up to $15,000 as a 1% interest, 30-year deferred second mortgage for Washington veterans; combines with Home Advantage or House Key first mortgages.
Requirements: Same income and purchase price limits as Home Advantage; minimum credit score of 620; homebuyer education required; proof of military service required.

Learn more about Veterans Downpayment Assistance Loan

Local Programs:

Seattle

Seattle Down Payment Assistance: Offers up to $76,000 as a 3% interest, 30-year deferred second mortgage (repayable upon sale or refinance) for first-time buyers; income at or below 80% AMI (e.g., $97,700 for a family of four in King County); purchase price limited to $563,500; requires $1,000 contribution, homebuyer education, and one-on-one housing counseling.

Learn more about Seattle Down Payment Assistance

Spokane

Spokane First-Time Homebuyer Program: Offers up to $25,000 as a 0% interest, deferred loan (repayable upon sale or refinance) for first-time buyers or those displaced (e.g., divorce, financial hardship); income at or below 80% AMI (e.g., $64,150 for a family of four in Spokane County); purchase price limited to $431,650; requires homebuyer education.

Learn more about Spokane First-Time Homebuyer Program

Tacoma

Tacoma Down Payment Assistance: Offers up to $60,000 as a 0% interest, 30-year deferred loan (repayable upon sale or refinance) for first-time buyers, prioritizing Black households; income at or below 80% AMI (e.g., $73,150 for a family of four in Pierce County); purchase price limited to $431,650; requires $1,000 contribution, WSHFC homebuyer education, and front-end DTI ≤38%, back-end DTI ≤45%. Available until December 2025 or funds depleted.

Learn more about Tacoma Down Payment Assistance

Clark County

Clark County Down Payment Assistance: Offers up to $60,000 ($45,000 from Clark County, $15,000 from WSHFC) as a 0% interest, 30-year deferred second mortgage for first-time buyers; income at or below 90% AMI (e.g., $87,750 for a family of four in Clark County); purchase price limited to $431,650; requires homebuyer education. Relaunched February 18, 2025, with $1 million available.

Learn more about Clark County Down Payment Assistance

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 50% of annual mortgage interest (max $2,000 yearly) for first-time buyers or buyers in targeted areas; fee of $800 ($400 with WSHFC mortgage) applies; recapture tax may apply if sold within 9 years.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Washington areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military; no PMI; flexible credit requirements.
• Median Home Price: $582,200 (February 2025); median down payment: $80,554 (Q1-Q3 2024).

Explore additional HUD homeownership resources