Washington State Housing Finance Commission programs
The Washington State Housing Finance Commission (WSHFC) offers two first-time homebuyer programs that provide down payment assistance, discounted rates and incentives for purchasing or upgrading to eco-friendly homes.
WSHFC doesn’t make loans directly. Instead, you’ll work with a Commission-trained loan officer within the WSHFC-approved lender network. The approved lender will determine if you qualify for down payment assistance, then process and underwrite your loan.
Your lender can also help you choose the right loan type. Both WSHFC first-loan programs work with Federal Housing Administration (FHA), VA, U.S. Department of Agriculture (USDA) and conventional loans.
Most state and federal programs define a first-time buyer as someone who hasn’t owned a home in the past three years. But if you’re buying in a federally designated target area — a neighborhood with lower incomes or homeownership rates — you might still qualify for first-time buyer programs, even if you’ve owned a home more recently.
» MORE: How much house can you afford?
To be considered a first-time homebuyer, you must not have owned a home in the past three years.
Home Advantage program
The Home Advantage program offers lower interest rates and down payment assistance to qualified first-time homebuyers and repeat buyers.
To qualify for a Home Advantage loan, you’ll need to:
- Make less than $215,000 per year
- Complete a WSHFC-sponsored homebuyer education seminar within the last two years
You can also pair your loan with the EnergySpark program, which offers a one-quarter percent interest rate discount if you buy an energy-efficient home or make qualifying energy-saving upgrades after purchase.
Home Advantage recipients receive a small interest rate discount when buying an energy-efficient home or making upgrades.
Home Advantage down payment assistance
When you qualify for Home Advantage mortgages, you can get up to 5% in down payment assistance. The assistance is a second loan with a 0% interest rate, only repayable when you sell the home, refinance, pay off your mortgage or move out of the home.
Needs-based assistance is available for Home Advantage borrowers earning up to $164,400 in King and Snohomish counties ($126,800 in all other counties). This program offers up to $10,000 in down payment assistance at 1% simple interest.
House Key Opportunity program
The House Key Opportunity program is designed for lower-income buyers who need help with upfront costs and want more affordable monthly payments.
To qualify for a House Key Opportunity loan, you’ll need to:
- Meet your county’s income limit (typically between $118,000 and $200,000)
- Be a first-time homebuyer or buy in a federally designated target area
- Buy a home within your county’s price cap (usually between $500,000 and $775,000)
- Complete a WSHFC-sponsored homebuyer education seminar within the past two years
House Key Opportunity down payment assistance
When you qualify for a House Key Opportunity mortgage, you can get up to $15,000 in down payment assistance (called the Opportunity loan). The aid comes as a second loan with a 1% simple interest rate, meaning interest doesn’t compound over time. You’ll repay the loan when you sell the home, refinance, pay off your loan or move out. Funds may be put toward the down payment and closing costs.
Down payment assistance options
In addition to the assistance offered through Home Advantage and House Key Opportunity, there are other down payment assistance programs in Washington, each with its own eligibility rules, loan terms and funding limits.
The HomeChoice program serves homebuyers with disabilities, while the ARCH program targets both first-time and repeat buyers in specific parts of King County. The Covenant Homeownership program benefits individuals from communities affected by housing discrimination. You can also find down payment assistance specifically for military veterans.
» MORE: Ways to get down payment assistance
HomeChoice
The HomeChoice down payment assistance program is for buyers with a disability or those who have a disabled family member living with them. It offers up to $15,000 in assistance and can be paired with either the WSHFC Home Advantage or House Key Opportunity mortgage programs.
The income limit is $164,400 in King and Snohomish counties and $126,800 in all other counties.This second loan has no interest and no monthly payments. You repay it only when you move, refinance, pay off or sell the home.
Veterans
If you’re a veteran living in Washington state, you can get up to $10,000 in down payment assistance in the form of a 3% simple interest loan.
To qualify, you must be one of the following:
- A veteran with an honorable discharge or a medical discharge with an honorable record
- A current or former member of the Washington National Guard or Reserve with an honorable discharge
- An unremarried spouse of a deceased veteran or their dependent child
Income limits for King and Snohomish counties are capped at $164,400. The limit for all other counties is $126,800.
As with other loan assistance programs, the loan becomes fully repayable should you refinance, sell, pay off or move out of your home. This WSHFC program can be combined with the Home Advantage or House Key Opportunity first-mortgage loan programs.
Covenant
The Covenant Homeownership Program serves first-time homebuyers who are members of groups that have experienced housing discrimination, including the Black, Hispanic, Indigenous and Native Hawaiian/Pacific Islander communities. It provides a 0% interest down payment assistance loan of up to $150,000 or 20% of the home’s price.
To qualify, you or your parent or grandparent must have lived in Washington prior to 1968. Like other WSHFC down payment programs, it can be combined with Home Advantage or House Key Opportunity loans.
The Covenant program has an income limit of 120% of the local AMI, and lower-income homeowners may qualify for loan forgiveness after five years.
Educational requirements for homebuyer programs
All first-time homebuyer and down payment assistance programs through Washington state require you to complete a free community-sponsored homebuyer education seminar within two years of using the program.
These seminars can be in-person or online and are usually a few hours long. Classes are designed to help first-time homebuyers learn about the homebuying process. Topics typically include:
- How to buy a home, step-by-step
- How home loans work
- Common first-time buyer pitfalls
- How much to put down
- Closing costs in Washington
You can find a full schedule of approved classes on the WSHFC website.
Additional resources for first-time homebuyers
Washington provides some additional local and community resources that help first-time homebuyers with down payment costs and mortgage options.
BECU grant for Washington homebuyers
Boeing Employees Credit Union (BECU) is a large local credit union that offers up to $8,000 in grant assistance to qualifying first-time homebuyers in Washington and a handful of other states.
The BECU First-Time Homebuyer Grant isn’t a loan and doesn’t need to be repaid as long as you live in the home for at least three years.
To qualify, you need to:
- Be or become a BECU member
- Purchase a single-family residence
- Take a qualifying homebuyer education course
- Earn less than the income limits, which vary by location
King County (ARCH)
This WSHFC program is for buyers purchasing a home in the ARCH (A Regional Coalition for Housing) area of East King County. It can be combined with a Home Advantage or House Key Opportunity first mortgage.
The ARCH area includes:
- Beaux Arts Village
- Bellevue
- Bothell
- Clyde Hill
- Hunts Point
- Issaquah
- Kenmore
- Kirkland
- Medina
- Mercer Island
- Newcastle
- Redmond
- Sammamish
- Woodinville
- Yarrow Point
Qualified buyers can receive up to $30,000 in down payment assistance as a second mortgage loan with a 4% simple interest rate. No monthly payments are required, but the loan becomes fully repayable if you sell, refinance, move out or pay off the loan.
To qualify, your household income must fall between $81,700 for a one-person household and $154,000 for an eight-person household. You’ll also need to contribute 2% of the home purchase price at closing.
ARCH income limits by household size
| Household size | Maximum income limit |
|---|---|
| 1 | $81,700 |
| 2 | $93,350 |
| 3 | $105,000 |
| 4 | $116,650 |
| 5 | $126,000 |
| 6 | $135,350 |
ARCH purchase price limits
To qualify, the home must also fall under these purchase price limits:
- New construction: $660,000
- Existing home: $646,000
Bellingham
If you purchase a home within the city limits of Bellingham, you may qualify for down payment assistance through the city’s homebuyer program. This program is available to eligible borrowers using a Home Advantage or House Key Opportunity first mortgage.
You can receive up to $40,000 in assistance at a 3% simple interest rate. No monthly payments are required, but the loan becomes fully repayable if you sell, refinance or move out of the home.
To qualify, your household income must be within the limits set by the program.
Bellingham income limits by household size
| Household size | Maximum income limit |
|---|---|
| 1 | $60,720 |
| 2 | $76,300 |
| 3 | $85,840 |
| 4 | $95,350 |
| 5 | $103,000 |
| 6 | $110,640 |
Bellingham purchase price limits
The home you purchase must fall under the following price caps:
- Single-unit (detached, attached or manufactured): $667,850
- Condominium: $375,250
Tacoma
If you’re buying a home in the city of Tacoma, you may qualify for up to $80,000 in down payment assistance. This is a 0% interest loan with no monthly payments.
To qualify for Tacoma down payment assistance, you’ll need to:
- Purchase a home within Tacoma city limits
- Be a first-time homebuyer (you and your spouse or partner haven’t owned a home in the past three years)
- Take a WSHFC-approved homebuyer education course
- Meet income and debt-to-income limits
Tacoma income limits by household size
| Household size | Maximum income limit |
|---|---|
| 1 | $67,700 |
| 2 | $77,350 |
| 3 | $87,000 |
| 4 | $96,650 |
| 5 | $104,400 |
| 6 | $112,150 |
Common challenges and solutions for first-time homebuyers
First-time homebuyers face quite a few challenges, especially as interest rates, insurance and taxes can make housing feel more unaffordable and out of reach. Here are a few things to be prepared for if you’re looking to buy your first home:
- Large upfront costs: Buying a home usually requires a down payment of at least 3% to 5% of the purchase price. With the median home cost rising to over $400,000 in the U.S., this means saving up at least $12,000 to $20,000. Combined with closing costs of another 3% to 6% of the home, you’re looking at needing $40,000 or more in some cases. Down payment assistance programs can help with these costs, lowering the amount you need saved to purchase your first home.
- Home maintenance costs: Many first-time homebuyers don’t calculate the true cost of owning a home. Home maintenance can cost thousands per year, but larger maintenance items, like a new roof, can cost tens of thousands. It’s important to build savings for home repairs and maintenance into your budget before you buy. A good rule of thumb is that you should save 1% of the home purchase price per year for maintenance.
- Understanding insurance and taxes: Your mortgage is only one piece of the puzzle when it comes to affording a home. You’ll also need to pay for homeowner’s insurance and property taxes either every six months or every month as part of your overall payment. Make sure to understand the details of how much you’ll pay for each before purchasing a home.
» MORE: First-time homebuyer benefits
FAQ
Does Washington have first-time homebuyer programs?
Yes, there are two main first-time homebuyer programs in Washington state. The Home Advantage program offers down payment assistance and lower interest rates on several types of loans to qualified borrowers. The House Key Opportunity program also offers down payment assistance and lower rates to low-income borrowers.
Both programs require you to work with a WSHFC-approved lender. The lender will help you apply and figure out which loan type you qualify for.
How much do first-time homebuyers have to put down in Washington state?
In general, most first-time homebuyer loans require a down payment of at least 3% to 5% of the home purchase price to buy a home. But there are down payment assistance programs that can cover most or all of these down payment costs through a low-interest second mortgage. These programs don’t require you to pay back the loan until you sell, refinance, move out of the home or pay off your first mortgage.
Are there any programs for low-income homebuyers in Washington?
Yes, the House Key Opportunity program offers down payment assistance and lower rates to low-income borrowers. If you make less than 80% of the AMI for your area, you may be able to get your down payment covered through a low-interest second loan. There are also city and county programs for low-income buyers, so ask your lender about additional assistance options in your area.
How can I qualify for down payment assistance in Washington?
To qualify for down payment assistance in Washington, you usually need to earn below certain income limits for your area, typically 80% to 90% of the AMI. In most cases, you must be a first-time homebuyer, meaning you haven’t owned a home in the past three years. Some exceptions apply if you're buying in a federally designated target area, usually a neighborhood with lower incomes or low homeownership rates.
You’ll also need to take a free homebuyer education course and work with an approved lender.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Redfin, “Washington Housing Market.” Accessed June 12, 2026.
- Washington State Housing Finance Commission, “Here to Home.” Accessed June 12, 2026.
- Washington State Housing Finance Commission, “EnergySpark.” Accessed June 12, 2026.
- Washington State Housing Finance Commission, “Downpayment Assistance.” Accessed June 12, 2026.
- Washington State Housing Finance Commission, “Target Areas.” Accessed June 12, 2026.
- BECU, “First-Time Homebuyer Grant.” Accessed June 12, 2026.
- City of Tacoma, “Down Payment Assistance.” Accessed June 12, 2026.
- Federal Reserve Bank of St. Louis, “Median Sales Price of Houses Sold for the United States.” Accessed June 12, 2026.
