Washington First-Time Home Buyer Programs 2026

For how Washington compares with other states and the federal options, see our national guide to first-time home buyer grants and programs.

Washington Down Payment Assistance Programs Compared (2026)

9 WSHFC downpayment loans were listed on the Commission's downpayment assistance page on November 3, 2026, and every one must be paired with one of its 2 first mortgages, Home Advantage or House Key Opportunity. According to WSHFC's downpayment assistance page, "all our downpayment assistant programs are provided as payment-deferred loans." There's no monthly payment, but the balance is due if you sell, refinance, transfer the home, stop living in it, or pay off the first mortgage (at 30 years or before).

Sources: WSHFC downpayment assistance page (opens in a new tab); WSHFC Covenant page (opens in a new tab); WSHFC credit score announcement, June 28, 2023 (opens in a new tab); WSHFC homebuyer FAQ (opens in a new tab). WSHFC's homebuyer pages don't state an interest rate for the Covenant or HomeChoice loans; ask the lender for the note terms.

Which first mortgage goes with which DPA. WSHFC's first mortgage page says every DPA works with Home Advantage except the Opportunity DPA, and every DPA works with House Key Opportunity except Home Advantage DPA and Needs-Based DPA. So the 3% to 5% option and the $15,000 option are never stacked together.

One discrepancy to flag. The Needs-Based DPA summary on WSHFC's page lists income up to $164,400 in King and Snohomish counties and $126,800 elsewhere, but the eligibility box on the same page lists $157,100 and $122,100. If your income falls between those numbers, have the lender confirm with WSHFC before you count on it.

Washington Income and Purchase Price Limits by County

$215,000 a year is the only Home Advantage income limit, the same in every county and for every household size, effective September 15, 2025, according to WSHFC's announcement raising it from $180,000. Home Advantage has no county purchase price cap on WSHFC's homebuyer pages. The tighter limits below apply to House Key Opportunity, its $15,000 DPA, and the Covenant program, shown for Washington's 10 most populous counties.

Sources and effective dates: House Key income and maximum acquisition cost from WSHFC's House Key limits page (opens in a new tab), effective September 15, 2025. Opportunity DPA income from the same page, effective June 8, 2026. Covenant income limits from WSHFC's Covenant page (opens in a new tab), effective June 8, 2026. Covenant forgiveness thresholds from WSHFC's chart for Covenant loans closed on or after June 8, 2026, on its thresholds page (opens in a new tab).

A few rules that change the numbers:

• Target Areas. These are economically distressed census tracts. Outside King, Pierce and Snohomish, House Key income limits rise to $130,000 and $150,000 in a Target Area, and you don't need to be a first-time buyer there. WSHFC's limits page has a map.
• Income is household income. House Key and the DPA limits count the household. Home Advantage uses the income on the lender's credit underwriting.
• Lower-income rate break. WSHFC's rates page prices conventional loans lower for buyers under 80% of area median income, a cutoff set by Fannie Mae and Freddie Mac. For the full HUD income tables, see our HUD income limits guide.

What the Covenant Homeownership Program Offers, and Where It Stands

$150,000 is the most a Covenant loan can be, according to WSHFC's downpayment assistance page: up to 20% of the cost of the home, plus closing costs. At 20%, that cap is reached on a $750,000 home. The program was created by the Covenant Homeownership Act in 2023 and is paid for by a $100 document recording assessment collected on real estate transactions since January 2024.

Who qualifies, per WSHFC's Covenant FAQ:

• Household income at or below 120% of area median income (the county figures in the table above).
• A first-time homebuyer, both borrower and spouse, under the act's definition: no home owned in the past three years, with exceptions for single parents and displaced homemakers who only owned with a spouse, and for owners of homes without a permanent foundation.
• You, a parent, grandparent or great-grandparent lived in Washington before April 1968.
• That person is Black, Hispanic, Native American or Alaska Native, Native Hawaiian or other Pacific Islander, Korean, or Asian Indian.

Forgiveness. House Bill 1696, effective July 27, 2025, added loan forgiveness. WSHFC's FAQ says the Covenant loan is forgiven automatically at five years and one month after closing if your income at purchase was at or below the county threshold, you still live in the home, the first mortgage is current, and WSHFC still owns the loan. Buyers above the threshold repay in full on sale or refinance. The full text of HB 1696 is on the Legislature's site (opens in a new tab).

Current status, from WSHFC's own notices:

• Pre-reservation list since April 20, 2026. WSHFC's Covenant page says "demand is outpacing the monthly supply of funds," while the program "continues to receive funding each month." Your lender submits your eligibility documents and pre-approval; you can't go under contract until WSHFC authorizes it in writing.
• New counseling rule. On October 30, 2026 WSHFC said buyers added to the list from December 1 must complete one-on-one pre-purchase counseling with a HUD-certified agency, and that it expects the list to stay "for the foreseeable future."
• Legal challenges. WSHFC reported a lawsuit against the program, a federal judge denying a request to block it (February 13, 2026), and a HUD fair-housing investigation (March 25, 2026). On June 26, 2026 it said it intends to keep running the program. Grantsights can't predict how those cases end; plan with a financing backup.

Grantsights analysis of WSHFC's 2025 Covenant impact report (July 1, 2024 to December 31, 2025) shows $119,265,215 loaned on 1,087 homes, an average of $109,720 per buyer. King (343) and Pierce (394) counties account for 737 of those loans, about 68%. The report also says 61% of borrowers were at or below 80% of area median income, the group most likely to fall under the forgiveness thresholds.

Local Programs in Seattle, Tacoma, Spokane, Snohomish and East King County

$76,000 is the most Seattle's Office of Housing allows per household for an open-market purchase, according to its Buy A Home page (opens in a new tab), checked November 3, 2026. City and county programs change often, so check status before you plan around one.

Notes:

• Seattle partners set the actual loan. The Office of Housing page says HomeSight's low-interest loan can reach $70,000 and Parkview Services' deferred second mortgage can go higher for eligible buyers; each sets its own terms. WSHFC's separate Seattle DPA ended on June 30, 2023.
• Tacoma had two programs. WSHFC's Tacoma DPA ended in June 2023. The city's own $80,000 program is the one now closed to applications. Pierce County buyers can still use WSHFC's statewide programs, and Pierce had the most Covenant loans of any county.
• Spokane. The city's and county's housing sites blocked automated reading on November 3, 2026, so this guide doesn't list amounts. Call the city's Community, Housing and Human Services department or SNAP.

Many local programs are funded by HUD's HOME program; our HOME Investment Partnerships guide explains how that money reaches cities and counties.

FHA, VA and USDA Loans in Washington

3.5% is the lowest FHA down payment, according to HUD's FHA loans page (opens in a new tab), and WSHFC's Home Advantage DPA can cover it, since the 3% to 5% is figured on the loan amount. Every WSHFC government loan is an FHA, VA or USDA mortgage with WSHFC's rate and DPA attached.

• FHA. WSHFC's rates page notes that FHA, VA, USDA and Fannie Mae loans can exceed $832,750 in high-cost counties, up to $1,063,750 for one unit, with a 2% high-balance fee on Home Advantage. That matters in King and Snohomish counties.
• VA. VA's purchase loan page (opens in a new tab) says there's no down payment if the price isn't higher than the appraised value, and no private mortgage insurance, though a funding fee may apply. Washington veterans can add WSHFC's $10,000 Veterans DPA for closing costs, and an honorably discharged veteran doesn't need first-time buyer status for House Key.
• USDA. Rural parts of Washington qualify for USDA Section 502 loans. USDA's site blocked automated reading on November 3, 2026; our USDA housing guide covers the program.

What WSHFC Doesn't Tell You on Its Program Pages

6.875% was WSHFC's House Key Opportunity FHA rate on November 3, 2026, versus 7.75% to 8.75% for Home Advantage FHA loans carrying 3% to 5% DPA, according to WSHFC's rates page (opens in a new tab). Grantsights checked the program pages against the rate sheet, the lender announcements and the recapture tax page, and five things stand out.

1. Bigger DPA means a higher rate. On the same day, Home Advantage FHA with 3% DPA was 7.75% with a 1% origination fee; with 5% DPA it was 8.75% with no origination fee. On a $434,250 loan, the extra 2% is $8,685 of help and the skipped fee saves $4,343, but the higher rate adds about $305 a month, which uses up both in roughly 43 months. Ask for quotes at each DPA level.
2. "Funds always available" applies to Home Advantage, not Covenant. WSHFC's lender flyer says Home Advantage funding is "continuous and without limits." Covenant buyers may wait months on the pre-reservation list.
3. House Key can trigger federal recapture tax; Home Advantage can't. WSHFC's recapture page says the tax can apply to loans from its House Key State Bond Program and to MCCs if you sell within nine years, at a gain, with income above federal limits. The maximum is 6.25% of the original loan or 50% of the gain, whichever is less, reported on IRS Form 8828 (opens in a new tab).
4. Interest builds on 1% to 4% loans. A $15,000 Opportunity DPA at 1% simple interest owes $16,500 after 10 years. A $30,000 ARCH loan at 4% simple interest adds $1,200 a year.
5. No credit-score floor isn't the same as no credit check. WSHFC dropped its 620 minimum, but your lender's automated underwriting still decides. Some lenders add their own minimums.

For example, a couple in Pierce County earning $98,000 buying a $450,000 home with FHA (base loan $434,250) can't use the $15,000 Opportunity DPA, because the two-person limit in Pierce is $83,000. Their choice is specifically Home Advantage with 4% DPA ($17,370, due on sale) at 7.875%, about $3,149 a month in principal and interest, or House Key at 6.875% with no DPA, about $2,853 a month, if they can bring the 3.5% down payment themselves. If they had a child, the three-person Opportunity DPA limit of $103,700 would let them take House Key plus $15,000 at 1%, saving about $296 a month against the 7.875% option. Rates change daily, so treat these as an illustration of the November 3 sheet, not a quote. On that sheet, a buyer under the Opportunity DPA limit had a best bet that's easy to miss: House Key's lower rate plus $15,000 at 1%, rather than the larger 5% Home Advantage loan.

Common Mistakes and Red Flags

$0 is what a real program charges you to apply. The FTC's government grant scams page (opens in a new tab) says "No government agency will ever contact you to demand that you pay to get a grant," and WSHFC says it doesn't lend to consumers directly; participating lenders do.

• Red flag: "Washington first-time buyer grant" ads that ask for a fee. WSHFC's programs are loans arranged through Commission-trained loan officers. No program on its pages is a cash grant.
• Common mistake: treating a deferred loan as free money. A 5% Home Advantage DPA on a $500,000 loan is $25,000 you'll owe when you sell or refinance, even years from now.
• Common mistake: refinancing without checking the second loan. Refinancing triggers repayment of WSHFC DPA, and it can end Covenant forgiveness if WSHFC no longer holds the loan.
• People underestimate the Covenant paperwork. WSHFC's February 2026 notice says staff review 30 to 50 family histories a week and return incomplete ones without review. Gather birth, census, school or military records early.
• Going under contract too soon. For Covenant, WSHFC says loans can be reserved only after you're authorized in writing to go under contract, with no exceptions.
• Wire fraud at closing. Confirm any wiring instructions by phone with your lender or escrow company at a number you already have.

If you're renting while you save, our rental assistance programs guide covers help with rent in the meantime.

How to Apply for Washington Down Payment Assistance, Step by Step

2 years is how long WSHFC's homebuyer class certificate stays valid, so you can take it well before you shop. There's no separate application to WSHFC; your loan officer handles the reservation.

1. Take the free WSHFC homebuyer education class. It's required for every Commission loan, online or in person, and every borrower signing the note needs their own certificate. Find one on WSHFC's class list (opens in a new tab).
2. Find a Commission-trained loan officer. WSHFC lists participating lenders on its first mortgage programs page (opens in a new tab); not every loan officer at those companies is trained, so ask.
3. Check limits for your county and household size in the table above, and whether the home is in a Target Area.
4. Ask for side-by-side quotes: Home Advantage at 3%, 4% and 5% DPA, and House Key with Opportunity DPA if you qualify.
5. For Covenant, start months early. Call the Washington State Homeownership Hotline at 1-877-894-4663, gather family history documents, get an underwriter-signed pre-approval, and expect the pre-reservation list. Book one-on-one counseling if you'll join the list on or after December 1, 2026.
6. For HomeChoice, ARCH or Bellingham, book the required one-on-one counseling once your lender says you're ready to close. HUD's counselor finder (opens in a new tab) lists approved agencies, and HUD's Washington page (opens in a new tab) links WSHFC's programs.

For general tips on applying to public programs as a person rather than an organization, see how to apply for grants as an individual.

What Happens If Funds Run Out or You're Denied

3 fallback routes exist when one Washington program is closed or says no: a different WSHFC DPA, a local program, or a federal loan with less down.

• Covenant wait list. WSHFC says every eligible buyer who follows the pre-reservation process will get Covenant funds. While you wait, you can still use Home Advantage or House Key DPA if you'd rather not wait.
• Over the income limit. If you're above the Opportunity DPA limit, Home Advantage's $215,000 cap probably still fits. If you're above that, an FHA loan with 3.5% down or a VA loan may be the route.
• Denied by underwriting. WSHFC relies on the lender's approval, so a denial usually means the first mortgage didn't qualify. A HUD-approved counselor can help with credit or debt-to-income problems; WSHFC lists housing counseling at no cost through the hotline.
• Local program closed. Tacoma's city program and WSHFC's old Seattle and Tacoma programs are closed. Ask a counselor which local funds are open now.
• Already own a home? House Key requires first-time status, but Home Advantage doesn't. Owners who need repairs rather than a purchase can look at home repair grants for low-income homeowners.

Buying in another state? See our guides for California, New York and Michigan.

If you need help with other household costs while you save, the Grantsights free eligibility checker points you to official routes such as benefit finders, rental help and 211. It doesn't hand out grants or home buyer money.

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Sources

1. WSHFC: Downpayment Assistance (opens in a new tab) - program amounts, interest, repayment terms, income limits for each DPA, ARCH and Bellingham limits
2. WSHFC: First Mortgage Programs (opens in a new tab) - Home Advantage and House Key eligibility, DPA pairing rules, participating lenders
3. WSHFC: House Key Limits (opens in a new tab) - House Key income and acquisition cost limits (effective September 15, 2025) and Opportunity DPA income limits (effective June 8, 2026)
4. WSHFC: Covenant Homeownership Program (opens in a new tab) - eligibility, county income limits (effective June 8, 2026), pre-reservation process
5. WSHFC: Covenant FAQs (opens in a new tab) - forgiveness rules under HB 1696
6. WSHFC: Covenant DPA Loan Forgiveness Income Thresholds (opens in a new tab) - county thresholds for loans closed on or after June 8, 2026
7. WSHFC: Covenant DPA Program Updates (October 30, 2026) (opens in a new tab) - pre-reservation list and counseling requirement from December 1
8. WSHFC: Update on Covenant Program Lawsuit (February 13, 2026) (opens in a new tab), Covenant Program Inquiry (March 25, 2026) (opens in a new tab) and Covenant Homeownership Program (June 26, 2026) (opens in a new tab) - legal status
9. WSHFC: CHP Impact Report, July 1, 2024 to December 31, 2025 (opens in a new tab) - loans, amounts and county counts
10. WSHFC: Home Advantage income limit raised to $215,000 (September 12, 2025) (opens in a new tab)
11. WSHFC: Credit Score for Commission Programs (June 28, 2023) (opens in a new tab) - 620 minimum removed
12. WSHFC: Today's Rates (opens in a new tab) - rates and DPA options effective 9:00 a.m. November 3, 2026; high-balance loan limits
13. WSHFC: Federal Recapture Tax (opens in a new tab) and MCC Reissuance (opens in a new tab) - recapture rules, $375 reissuance fee
14. WSHFC: Homebuyer FAQs (opens in a new tab) - no MCCs for home purchase; first-time buyer definition
15. WSHFC: Seattle Downpayment Assistance Program ended (June 30, 2023) (opens in a new tab) and Tacoma Downpayment Assistance Program sunset (April 21, 2023) (opens in a new tab)
16. City of Seattle Office of Housing: Buy A Home (opens in a new tab) - $76,000 maximum, eligibility, partner organizations
17. City of Tacoma: Down Payment Assistance (opens in a new tab) - $80,000 program terms and closed status (page dated November 7, 2025)
18. Snohomish County: HOME Investment Partnerships (opens in a new tab) - county HOME uses
19. Washington State Legislature: HB 1696 (2025) (opens in a new tab)
20. HUD: FHA loans (opens in a new tab), HUD Washington state page (opens in a new tab) and HUD housing counselor finder (opens in a new tab)
21. VA: Purchase loan (opens in a new tab)
22. IRS: About Form 8828, Recapture of Federal Mortgage Subsidy (opens in a new tab)
23. FTC: Government grant scams (opens in a new tab)