Down Payment Assistance Programs in Washington State (2026)
Last updated 05/20/2026 by
Ante Mazalin
Edited by
Andrew Latham
Summary:
Washington State down payment assistance is a set of programs through the Washington State Housing Finance Commission (WSHFC) that help buyers cover down payment and closing costs.
Programs range from a broad statewide option with no first-time buyer requirement to a first-in-the-nation reparative program for buyers affected by historic housing discrimination.
- Covenant Homeownership Program: Best for buyers from racial groups historically excluded from Washington homeownership, with the highest assistance ceiling in the state and a forgiveness path for lower-income participants.
- Home Advantage DPA: Best for moderate- to higher-income buyers who want straightforward down payment help with no first-time buyer requirement and a high statewide income limit.
- House Key Opportunity DPA: Best for lower-income first-time buyers who need to pair down payment assistance with a below-market first mortgage and meet tighter income thresholds by county.
- Local programs: Best for buyers in specific cities — ARCH covers East King County suburbs, Bellingham serves buyers in the city limits, and Seattle’s Office of Housing provides assistance through nonprofit partners.
Washington is one of the most expensive housing markets in the country, but it also has one of the most comprehensive state DPA systems, including a program that does not require first-time buyer status and one that can deliver six figures in assistance.
Every WSHFC program pairs with a first mortgage originated through a Commission-trained lender and requires completion of a free homebuyer education class. All programs are accessed through HereToHome.org, WSHFC’s homebuyer portal.
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Covenant Homeownership Program
The Covenant Homeownership Program is the largest down payment assistance program in Washington state and one of the most ambitious in the country.
Created by the Covenant Homeownership Act in 2023 and expanded by H.B. 1696 in 2025, it provides up to $150,000, or 20% of the home’s purchase price, whichever is lower, plus closing cost assistance, as a 0% interest deferred loan.
The loan is repaid when the borrower sells, refinances, transfers, or vacates the property, or at 30 years. No monthly payments are required.
Forgiveness path: For buyers whose household income was at or below 80% of the area median income at the time of purchase, the loan is automatically forgiven at five years and one month after closing. Three conditions must be met: the buyer must still be owner-occupying the property, the first mortgage must be in good standing, and WSHFC must still hold the loan in its portfolio.
Following H.B. 1696’s enhancements (effective July 28, 2025), forgiveness applies to all eligible Covenant homebuyers — including those who purchased before the program’s original July 1, 2024 cutoff — as long as the three conditions above are met.
Who qualifies: Borrowers must be first-time buyers, earn at or below 120% of the area median income for their county, and have documentation showing that they themselves, a parent, grandparent, or great-grandparent lived in Washington state before April 1968.
The person who lived in Washington before 1968 must be a member of one of the following groups: Black, Hispanic, Native American or Alaska Native, Native Hawaiian or other Pacific Islander, Korean, or Asian Indian.
Why April 1968?
The Fair Housing Act was passed in April 1968, making racial discrimination in housing illegal at the federal level. The Covenant program targets the period when state-sanctioned discrimination — including racially restrictive property covenants and redlining — was still legally enforced. Washington documented nearly 50,000 racially restrictive covenants across the state.
Funding and availability: The program is funded by a $100 document recording fee on every real estate transaction in Washington, which generates between $75 million and $100 million annually. As of April 20, 2026, lenders must follow a pre-reservation process before reserving Covenant funds, because monthly demand has begun to exceed the monthly supply. Buyers are advised to start the process early, including completing homebuyer education and securing underwriter pre-approval, before house-hunting.
Federal investigation notice (updated May 2026)
On March 24, 2026, HUD’s Office for Fair Housing and Equal Opportunity launched a fair housing investigation into the Covenant Homeownership Program. HUD stated it believes the program may violate the Fair Housing Act due to its race-based eligibility criteria. The investigation is ongoing; no final determination has been issued.
The Washington State Housing Finance Commission has not shut down the program, which continues to accept applications as of this article’s publication date. Prospective applicants should monitor the program’s status at HereToHome.org for updates.
Documentation required: Borrowers must provide documentation of the pre-1968 Washington residence and racial/ethnic identity of the qualifying family member. Acceptable documents include birth certificates, school records, military records, census data, church records, probate records, and genealogical records.
Covenant Income Limits by County (effective July 28, 2025)
These limits reflect 120% of the area median income for each county. Buyers at or below these limits are eligible to apply.
| County | Maximum Household Income |
|---|---|
| Adams | $113,750 |
| Asotin | $104,500 |
| Benton | $126,700 |
| Chelan | $115,800 |
| Clallam | $113,750 |
| Columbia | $120,250 |
| Cowlitz | $113,750 |
| Douglas | $115,800 |
| Ferry | $113,750 |
| Franklin | $126,700 |
| Garfield | $113,750 |
| Grant | $113,750 |
| Grays Harbor | $113,750 |
| Island | $133,700 |
| Jefferson | $117,950 |
| King | $188,500 |
| Kitsap | $149,150 |
| Kittitas | $129,250 |
| Klickitat | $113,750 |
| Lewis | $113,750 |
| Lincoln | $113,750 |
| Mason | $120,250 |
| Okanogan | $113,750 |
| Pacific | $113,750 |
| Pend Oreille | $113,750 |
| Pierce | $144,950 |
| San Juan | $132,950 |
| Skagit | $131,300 |
| Skamania | $148,900 |
| Snohomish | $188,500 |
| Spokane | $120,950 |
| Stevens | $113,750 |
| Thurston | $140,050 |
| Wahkiakum | $113,750 |
| Walla Walla | $117,500 |
| Whatcom | $130,100 |
| Whitman | $117,950 |
| Yakima | $113,750 |
Home Advantage Down Payment Assistance
WSHFC’s Home Advantage program offers two distinct DPA options depending on the buyer’s income and home price. Both pair with the Home Advantage first mortgage.
Home Advantage DPA (standard): Provides 3%, 4%, or 5% of the first-mortgage loan amount as a 0% interest deferred second mortgage. No monthly payments are required. The balance is due when the borrower sells, refinances, transfers, moves out, or pays off the home. Income must not exceed $215,000, which is one of the highest statewide limits in the country. First-time buyer status is not required.
Home Advantage Needs-Based DPA: Provides up to $10,000 at 1% simple interest, also deferred with no monthly payments. Income limits are lower: $157,100 for households in King and Snohomish counties, $122,100 in all other counties. A needs assessment is required, except for military veterans. First-time buyer status is not required.
Which Home Advantage option is right for you?
The standard Home Advantage DPA is generally the stronger fit for buyers purchasing above $250,000, since the percentage-based structure produces a larger assistance amount. The Needs-Based option is typically recommended for buyers purchasing below $250,000 who also meet the tighter income limits. Your Commission-trained lender will help you determine which program works best.
House Key Opportunity Down Payment Assistance
The House Key Opportunity DPA provides up to $15,000 at 1% simple interest, deferred with no monthly payments. It pairs with the House Key Opportunity first mortgage, which carries below-market rates targeted at lower-income buyers. Unlike the Home Advantage programs, House Key requires first-time buyer status — or that you are purchasing in a federally designated Target Area.
A needs assessment is required, except for military veterans.
Income limits apply by county group and household size:
| Counties | 1–2 Person Household | 3+ Person Household |
|---|---|---|
| King, Snohomish | $96,950 | $121,150 |
| Clark, Kitsap, Pierce, Skamania | $79,450 | $99,300 |
| Thurston, Whatcom | $74,700 | $93,350 |
| All other counties | $67,600 | $84,500 |
Specialty Programs: Veterans and Buyers with Disabilities
WSHFC administers two targeted programs for buyers with specific circumstances, both deferred with no monthly payments.
Veterans Down Payment Assistance Program: Provides up to $10,000 at 3% simple interest for eligible Washington state military veterans. Eligible borrowers include those with honorable discharges, members and honorably discharged former members of the Washington National Guard and Reserve, and unremarried surviving spouses or dependent children of deceased veterans. Income limits are $157,100 in King and Snohomish counties and $122,100 in all other counties. First-time buyer status is required unless purchasing in a Target Area.
HomeChoice Down Payment Assistance: Provides up to $15,000 for buyers who have a disability, or who have a family member with a disability living with them. The disability must be verified and meet the definition under the Americans with Disabilities Act of 1990 or Washington RCW 71A.10.020. Income limits match the Veterans program: $157,100 in King and Snohomish counties, $122,100 elsewhere. First-time buyer status is required unless purchasing in a Target Area. HomeChoice also requires a one-on-one pre-purchase counseling session with an approved housing counselor before closing.
Local Down Payment Assistance Programs
ARCH East King County
The ARCH (A Regional Coalition for Housing) program provides up to $30,000 at 4% simple interest for buyers purchasing in 15 East King County cities: Beaux Arts Village, Bellevue, Bothell, Clyde Hill, Hunts Point, Issaquah, Kenmore, Kirkland, Medina, Mercer Island, Newcastle, Redmond, Sammamish, Woodinville, and Yarrow Point.
First-time buyer status is not required. The home must be owner-occupied and must not have been occupied by a tenant within 90 days of the purchase and sale agreement. Purchase price limits are $660,000 for new construction and $646,000 for existing homes.
Borrowers must contribute 2% of the purchase price toward the down payment, with up to half of that amount allowable from gift funds. A one-on-one pre-purchase counseling session is also required.
Income limits apply by household size:
| Household Size | Maximum Income |
|---|---|
| 1 | $84,850 |
| 2 | $96,950 |
| 3 | $109,050 |
| 4 | $121,150 |
| 5 | $130,850 |
| 6 | $140,550 |
| 7 | $150,250 |
| 8 | $157,100 |
Bellingham Down Payment Assistance Program
The City of Bellingham’s program provides up to $40,000 at 3% simple interest for first-time buyers purchasing within Bellingham city limits. No monthly payments are required; the balance is due when the borrower sells, refinances, transfers, moves out, or pays off the home.
Purchase price limits are $667,850 for single-unit homes and $375,250 for condominiums. Borrowers must contribute the greater of $2,500 or 1% of the purchase price toward the down payment, with up to 25% of that contribution allowable from gift funds. A one-on-one pre-purchase counseling session with Kulshan Community Land Trust is required.
Income limits apply by household size:
| Household Size | Maximum Income |
|---|---|
| 1 | $60,700 |
| 2 | $69,400 |
| 3 | $78,050 |
| 4 | $86,700 |
| 5 | $93,650 |
| 6 | $100,600 |
| 7 | $107,550 |
| 8 | $114,450 |
Seattle Office of Housing
The Seattle Office of Housing provides down payment assistance to buyers at or below 80% of area median income through partnerships with local nonprofit organizations. Assistance is available only for homes within Seattle city limits. Buyers must be first-time purchasers (or not have owned a home in the past three years), complete a pre-purchase homebuyer education program, and attend a one-on-one housing counseling session.
Up to $76,000 is available for open-market purchases through Seattle Housing Levy funds. Partner organizations — including HomeSight, Parkview Services, Habitat for Humanity Seattle-King County, and Homestead Community Land Trust — each offer different assistance structures and amounts. Buyers work directly with one of these partners to access funds.
How to Apply for Washington Down Payment Assistance
Every WSHFC program is accessed through a Commission-trained lender. Here is the standard process:
- Take a free homebuyer education class. All WSHFC programs require a certificate from a Commission-sponsored class. Classes are offered online and in person throughout the state. Find a class at HereToHome.org.
- Contact a Commission-trained lender. Lenders are listed at HereToHome.org. Your lender will review your income, household size, county, and purchase goals to match you with the program — or combination of programs — that fits best.
- For the Covenant program, start early. As of April 20, 2026, the Covenant program requires a pre-reservation process. Before house-hunting, secure underwriter pre-approval and begin gathering family history documentation. Your lender submits these materials to WSHFC to reserve Covenant funds before you go under contract.
- Find a home and submit your loan file. Once you are under contract, your lender reserves both the first mortgage and the DPA loan through WSHFC’s reservation system and prepares your closing package.
- Close on your home. Both loans close simultaneously. You receive one set of closing documents and make one combined payment on your first mortgage each month.
Other Ways to Lower Your Down Payment
FHA loans allow down payments as low as 3.5% with a credit score of 580 or higher, and they can be stacked with WSHFC DPA programs. VA loans eliminate the down payment entirely for eligible veterans and active-duty service members — though WSHFC’s Veterans DPA can further reduce closing costs even with a VA loan.
Leasehold homeownership is another path that reduces the upfront purchase price by separating the land from the structure. Jubilee is one provider offering this model, which can make homes in high-cost markets more accessible. Review the trade-offs of leasehold homeownership before committing.
Down Payment Assistance in Other States
Programs vary significantly by state — income limits, assistance amounts, forgiveness terms, and lender networks all differ. These guides cover verified program details for seven other states.
- Oregon: OHCS’s Flex Lending program provides 4–5% of the loan amount as a second mortgage paired with a fixed-rate first, and the OHCS DPA Program reaches up to $60,000 for first-time and first-generation buyers at or below 100% AMI.
- New Jersey: NJHMFA provides $15,000 as a zero-interest second mortgage that becomes fully forgivable after five years of continuous occupancy.
- Massachusetts: MassHousing provides $25,000 at 0% deferred, and ONE+ reaches up to $50,000 for buyers in 29 Gateway Cities.
- Virginia: Virginia Housing’s DPA Grant delivers 2–2.5% of the purchase price as a true gift, never repaid. DHCD’s deferred loan reaches $50,000 for buyers at or below 60% AMI.
- Florida: Florida Housing’s FL Assist provides $10,000 at 0% deferred for 30 years. Hometown Heroes reaches up to $35,000 for Florida workers. Orange County offers tiered assistance up to $70,000.
- Utah: UHC offers up to $27,500 in down payment assistance as a second mortgage, with or without monthly payments. The First-Time Homebuyer Assistance Program adds up to $20,000 for buyers of newly constructed homes.
- Connecticut: CHFA’s Time To Own provides up to $25,000 at 0% interest, forgiven 10% annually over 10 years. The DAP loan adds up to $15,000 as a second mortgage for buyers who need additional help.
Frequently Asked Questions
Do I need to be a first-time homebuyer to use Washington DPA?
Not for every program. Home Advantage DPA, Home Advantage Needs-Based DPA, and ARCH East King County do not require first-time buyer status. The Covenant Homeownership Program, House Key Opportunity DPA, Veterans DPA, HomeChoice DPA, and the Bellingham program do require first-time buyer status — though most allow an exception for purchases in federally designated Target Areas.
Can I stack multiple Washington DPA programs?
Yes. WSHFC programs are designed to be layered. A Covenant-eligible buyer can also use a Home Advantage or House Key first mortgage, and may layer other local or nonprofit assistance on top. Your Commission-trained lender will identify which combinations are permitted and maximize your total assistance.
What happens to my Covenant loan if I refinance?
The Covenant loan becomes due and payable when you refinance. If the loan has not yet reached the five-year forgiveness threshold, you will need to repay the full balance at the time of refinancing. If you are near the five-year mark and expect to qualify for forgiveness, consult with your lender before refinancing.
Is the Covenant program running out of money?
The program is funded by a $100 document recording fee on every Washington real estate transaction, which generates $75 million to $100 million annually. WSHFC states the program continues to receive funding each month. The April 2026 pre-reservation process was introduced because monthly demand began to exceed the monthly supply of funds — not because the program is ending. Buyers who follow the pre-reservation steps are expected to receive funds.
Can I use Washington DPA with an FHA or VA loan?
Yes. WSHFC DPA programs are compatible with conventional loans and government loans including FHA, VA, USDA, and HUD 184. Your first mortgage must be originated through a Commission-trained lender, but the underlying loan type can vary based on your eligibility and the program requirements.
How do I find a Commission-trained lender?
WSHFC maintains a searchable lender directory at HereToHome.org. You can filter by location. Alternatively, call the Washington State Homeownership Hotline at 1-877-894-4663 for a referral based on your situation and goals.
Key takeaways
- The Covenant Homeownership Program provides up to $150,000 at 0% interest for buyers with pre-1968 Washington roots from six racial groups historically excluded from homeownership. Loans may be forgiven after five years for buyers who were at or below 80% AMI at the time of purchase. As of April 2026, a pre-reservation process is required — start before house-hunting.
- Home Advantage DPA provides 3%, 4%, or 5% of the first mortgage at 0% interest with no monthly payments. The income limit is $215,000 statewide and no first-time buyer status is required, making it the most accessible WSHFC program for moderate- to higher-income buyers.
- House Key Opportunity DPA provides up to $15,000 at 1% simple interest for lower-income first-time buyers, with income limits ranging from $67,600 to $121,150 depending on county and household size.
- ARCH East King County reaches up to $30,000 for buyers in 15 East King County cities. The Bellingham program reaches up to $40,000 within Bellingham city limits. Seattle’s Office of Housing provides up to $76,000 through nonprofit partners for buyers at or below 80% AMI within Seattle.
- Every WSHFC program requires a free homebuyer education class and must be paired with a first mortgage through a Commission-trained lender. All programs are accessed through HereToHome.org.
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