In Washington, down payment assistance programs help thousands of buyers overcome the biggest barrier to homeownership: saving for a down payment. With home prices continuing to rise across the state, these programs offer crucial financial support, making homeownership possible.
Quick Overview: Washington Down Payment Assistance Options
- State programs: Up to 5% of the loan amount, which can be up to $40,000. (Home Advantage) or $15,000 (Opportunity DPA)
- Local programs: Up to $90,000 in Seattle, $50,000 in Snohomish County, and $45,000 in King County (amounts subject to change).
- Specialized programs: Veterans DPA ($10,000), Covenant Homeownership Act.
- Structure: Most are deferred loans with 0% interest, paid back when you sell or refinance.
- Eligibility: Varies by program; some have no income limits and/or no first-time buyer requirements.
These programs work by bridging the gap between what you have saved for down payment and what is required for down payment.. Instead of needing $50,000 or more for a down payment, you might need only a few thousand dollars or even nothing at all.
This guide covers the main down payment assistance programs available in Washington state, from statewide options through the Washington State Housing Finance Commission to local city and county programs. You’ll learn what you qualify for, how to apply, and how to combine multiple programs for maximum benefit.
Statewide Down Payment Assistance Programs for Washington
When you’re looking for Washington down payment assistance, lenders offering loans designed by the Washington State Housing Finance Commission (WSHFC) are your ally. This state agency has been helping Washington families achieve homeownership for decades.
The beauty of WSHFC programs lies in their structure. Most assistance comes in the form of deferred loans, which means you won’t have monthly payments eating into your budget. Instead, you’ll repay the assistance when you sell your home, refinance your first mortgage, or reach the end of your loan term. It’s like getting an interest-free loan from a very patient friend.
Home Advantage DPA
The Home Advantage program is the heavyweight champion of Washington down payment assistance. This program offers up to 5% of your loan amount as a 0% interest deferred loan. That’s right, 0% interest, which is practically unheard of in today’s lending world.
Here’s what makes this program special: It has broad eligibility requirements, meaning that more families can qualify. The assistance gets repaid only when you move, sell or refinance, so you can focus on building equity instead of juggling multiple monthly payments.
House Key Opportunity DPA
For families with low to moderate incomes, the House Key Opportunity DPA offers up to $15,000 in assistance. This program is structured as a deferred second mortgage, which means it sits quietly behind your first mortgage until you’re ready to sell or refinance.
The program works particularly well with FHA loans, which already offer lower down payment requirements and flexible credit standards.
Veterans DPA
Washington state honors its service members with the Veterans DPA program, offering up to $10,000 in assistance to honorably discharged veterans and active-duty service members. Like other WSHFC programs, this comes as a 0% interest deferred loan.
The Veterans DPA pairs naturally with VA loans, which already offer incredible benefits like no down payment requirements.
Specialized and Local DPA Programs Across Washington
Beyond the statewide programs, Washington offers specialized and local options. These programs are where you can really see communities stepping up to address specific needs, whether that’s helping families who’ve faced historical discrimination, supporting veterans, or simply recognizing that Seattle’s housing market needs different solutions from rural areas.
The beauty of these programs is that some can be layered together. You might qualify for a state program and a local program and a specialized program all at once. It’s like finding multiple puzzle pieces that all fit together to make homeownership possible.
County and City specific down payment assistance in WA
Local governments across Washington understand that their residents face unique housing challenges, and many have created their own assistance programs. The amounts can be substantial, sometimes even larger than state programs.
Seattle’s program is particularly generous, offering up to $90,000 at a low-interest-rate deferred loan. In one of the country's most expensive housing markets, this kind of assistance can be the difference between renting forever and owning your own home.
East King County steps up with the ARCH program, offering $30,000 at 4% simple interest. Bellingham has a similar program with similar terms.
Other niche programs
Washington down payment assistance includes some truly unique programs designed for specific situations and communities.
- The HomeChoice DPA Program recognizes that families dealing with disabilities often face additional financial challenges. It provides up to $15,000 specifically for buyers in King and Snohomish counties who have a disability or have a family member with a disability living in their household.
- The Mortgage Credit Certificate (MCC) isn’t upfront cash, but it’s money in your pocket every year. This federal tax credit lets you claim a portion of your annual mortgage interest as a tax credit, reducing your tax burden year after year. There are complex rules around the MCC. We recommend talking to one of our mortgage professionals and a tax professional to understand if this program can help you.
How to Qualify and Apply for Down Payment Assistance in Washington
Getting started with Washington down payment assistance doesn’t have to feel overwhelming. Think of it like following a recipe—once you know the ingredients and steps, the whole process becomes much more manageable. We’re here to walk you through everything, from understanding what programs you might qualify for to actually getting those funds reserved for your dream home.
ELIGIBILITY REQUIREMENTS
Before we get into the typical eligibility requirements, we want to tell you that we have a very flexible program that does not have many of the typical requirements. This program has:
- No Income Limits.
- Credit Scores as low as 580.
- No First Time Homebuyer Requirement
- No Location Relocation Requirement
Typical eligibility requirements
While each program has its own personality, most Washington down payment assistance programs share some common requirements listed below:
- Income limits are probably the most common requirement. Some programs tie their income limits to something called area median income (AMI), which is basically the middle income for families in your county. For example, the Covenant Homeownership Program allows incomes up to 100% of AMI, while others might cap it at 80%. The Home Advantage program currently has a generous income limit of $215,000.
- Credit score requirements vary quite a bit between programs. Many programs work with credit scores as low as 620, and some of our specialized programs are even more flexible. If your credit needs some work, don’t panic. There’s often time for us to coach you how to improve it before you buy your home.
- The first-time homebuyer requirement is more flexible than you might think. Generally, it means you haven’t owned a home in the past three years. But there are exceptions for single parents, displaced homemakers, and people who’ve only owned homes that weren’t permanent or livable.
- Some programs also have location requirements, such as needing to purchase within Seattle city limits for Seattle’s DPA program, or demographic criteria for specialized programs serving veterans, or historically underserved communities.
- Most programs require homebuyer education. You’ll spend about five hours learning everything from how mortgages work to what to expect at closing. It’s like getting a crash course in homeownership before you dive in. We can help you find the homebuyer education class that’s right for you when the time comes.
Your step-by-step application guide
Here’s how the whole process typically unfolds, from start to finish:
Start by contacting an approved lender (that’s us). This step is absolutely crucial because not every lender can offer every DPA program. For WSHFC programs, you need a lender who’s been trained on their specific requirements and processes. We specialize in these programs and stay up-to-date on all the latest options, including exclusive programs that aren’t widely advertised.
Get pre-qualified for your mortgage so you know exactly how much home you can afford. This is when we’ll also evaluate which DPA programs you qualify for based on your income, credit, and other factors. It’s exciting to see how much assistance you might be eligible for!
Ask your lender to help you schedule your homebuyer education. There are different courses required for different programs. Some of them take several hours to complete, so let us help you make sure you are taking the course you need.
Connect with a housing counselor if your chosen program requires it. Programs like Seattle’s DPA often require one-on-one counseling sessions beyond the basic education class. These sessions can be incredibly valuable. Counselors help you create a realistic budget, understand your credit report, and prepare for all the costs of homeownership.
Reserve your assistance funds once you’re ready to make an offer. We’ll work with you to reserve both your first mortgage and any DPA funds simultaneously. This ensures that everything is lined up and ready when you find your perfect home.
The most important step is having a lender who can help you through the process. If you’d like to see if you’re eligible for Washington down payment assistance, connect with us today.
Frequently Asked Questions about DPA in Washington
We love talking with folks about Washington down payment assistance—it’s one of our favorite topics because we get to help people realize that their homeownership dreams are closer than they think! Here are the questions that come up most often in our conversations.
Can I buy a home with no money down in Washington
Absolutely! This is the question that gets people most excited, and for good reason. It might sound too good to be true, but we help many buyers do this in Washington state.
When you work with our experts in Washington down payment assistance programs, magic happens. These programs can cover your entire down payment. Then you may be able to use strategies like seller concessions to handle closing costs.
We’ve become specialists at navigating these programs because we know how life-changing it can be when someone realizes they don’t need to wait years to save up $50,000 or more. The path to homeownership with minimal out-of-pocket costs is real, and we’re here to show you exactly how it works for your situation.
What is a deferred loan?
Think of a deferred loan as a very patient friend who lends you money without expecting monthly payments. In Washington, down payment assistance with a deferred loan is what most programs offer—and it’s amazing when you understand how it works.
With a deferred loan, you receive the assistance money upfront to help with your down payment, but you don’t make any monthly payments on that amount. Instead, the loan just sits there quietly, often at 0% interest, until certain things happen that trigger repayment.
The most common repayment triggers include selling your home, refinancing your first mortgage, moving out (so it’s no longer your primary residence), paying off your main mortgage completely, or reaching the end of the loan term (often 30 years).
This structure is brilliant because it lets you focus on your primary mortgage payment without worrying about an additional monthly payment for the assistance. It’s designed to remove barriers, not create new ones.
Do I qualify for down payment assistance?
Most people are pleasantly surprised to learn that they qualify for more programs than they initially thought. Here’s the encouraging news: Washington’s down payment assistance programs are designed to help a wide range of buyers, not just those with the lowest incomes.
Income requirements vary significantly among programs. While some programs target families earning less than 80% of area median income (AMI), others, like the Covenant Homeownership Program, allow incomes up to 100% of AMI. In King County, for example, 100% AMI for a family of four is around $120,000 annually. The Home Advantage program currently has a generous income limit of $215,000. Many middle-income families are surprised to discover that they qualify. We even have one program with no income limit at all!
Credit score requirements are often more flexible than traditional loans, with many programs accepting scores as low as 620. Some specialized programs offer even more flexibility. We have a flexible program that allows credit scores as low as 580.
First-time buyer status is required for most programs, but remember—this typically means you haven’t owned a home in the past three years, not that you’ve never owned one before. We also have a program that does not require you to be a First Time Homebuyer.
The best way to know for sure is to speak with our specially trained loan officers who can evaluate your specific situation against all available programs. You might qualify for multiple programs that can be combined for maximum benefit.
Can I use down payment assistance with any type of loan?
This is a smart question because loan compatibility can make or break your assistance strategy. The good news is that Washington down payment assistance programs work with most popular loan types, but there are some strategic combinations that work better than others.
- FHA loans pair beautifully with most DPA programs since they already offer lower down payment requirements (3.5%) and flexible credit standards. Programs like House Key Opportunity DPA are specifically designed to work well with FHA loans.
- VA loans create an incredible opportunity for eligible veterans. Since VA loans require no down payment, you can potentially use Veterans DPA ($10,000) plus other assistance programs for closing costs, essentially getting paid to buy a home.
- Conventional loans work with most programs, though some have specific requirements about loan-to-value ratios or mortgage insurance.
- USDA loans can be combined with certain DPA programs in eligible rural areas, though options may be more limited.
The key is working with a lender who understands which combinations work best. Some DPA programs work better with specific loan types, and an experienced lender can help you find the most advantageous combination for your situation.
What happens if I move or sell my home before the deferred loan term ends?
This is one of the most practical questions we hear, and understanding the answer helps you make informed decisions about your homeownership journey.
When you sell your home or move out (making it no longer your primary residence), your deferred loan becomes due.
Let’s say you received $15,000 in down payment assistance and sell your home five years later. If your home has appreciated in value (which often happens in Washington’s market), the equity you’ve built can often cover the loan repayment . You’ve essentially lived in your home for years without making payments on that $15,000, while building equity that often far exceeds the assistance amount.
Your homeownership story starts with a single step. Let’s take that step together and turn your dream of owning a home in Washington into a new address.