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KingWu/Getty Images May 25, 2022 Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Bankrate logo

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At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo

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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. With outdoor beauty, major companies like Amazon and Microsoft and no state income tax, Washington continues to welcome new residents. In fact, more people have moved in than out of the state over the past three decades. That influx can spell difficulties for , but all isn’t lost. The Washington State Housing Finance Commission works with mortgage lenders to offer a range of programs to help first-time homebuyers. The state’s definition of a first-time homebuyer provides some leeway, too: someone who hasn’t owned and occupied a primary residence in the last three years, not necessarily someone new to homeownership.

Washington first-time homebuyer loan programs

The Washington State Housing Finance Commission (WSHFC) has two primary first-time homebuyer mortgage programs, Home Advantage and House Key Opportunity, both of which can be applied to a conventional, FHA, VA or USDA loan. To qualify, you’ll need to complete a five-hour homebuyer education course (currently, courses are being ) and meet other program requirements.

WSHFC Home Advantage

The Home Advantage program can help Washington first-time homebuyers qualify for a low interest rate. The requirements are fairly straightforward: 620 minimum credit score Maximum 50 percent debt-to-income (DTI) ratio Annual income under $160,000

WSHFC House Key Opportunity

House Key Opportunity is geared toward homebuyers with lower incomes who are also leveraging certain down payment assistance programs. The range from $75,000 to $140,000, depending on where you want to buy and how big your household is. The home you want to buy cannot exceed a certain amount — ranging from $265,000 to $575,000 — based on the location of the home. Like Home Advantage, the benefit of House Key Opportunity is a competitive interest rate, which is lower on FHA, VA and USDA loans. For a conventional loan, you’ll be able to qualify for a rate discount if your income is below 80 percent of the area median income (AMI). Here is a by county.

WSHFC EnergySpark

If you qualify for the Home Advantage program, you might want to explore buying a home that is especially eco-friendly or one that can be renovated to meet Washington’s green standards. That’s because, if so, you could be eligible to take advantage of the EnergySpark program, which offers an additional discount on your interest rate. Property requirements: Must be a new home that meets specific NEEM/Energy Star, LEED or Built Green certification standards Must be an existing home that can be renovated to deliver 10 percent energy savings compared to its existing usage

Washington down payment assistance

Coming up with a down payment for a home in Washington can be daunting, but if you’re a first-time homebuyer, the state has a few options that can help. In fact, according to the WSHFC, the average homebuyer scores $10,000 in through the agency. All of the following assistance programs are loans, and you’ll need to pay them back when you sell your home or refinance your mortgage or pay it off. To qualify, you’ll need a minimum credit score of 620 and to meet income requirements, which vary by program. You could also be eligible if you’re not a first-time homebuyer but purchasing in a specified “targeted area.”

Home Advantage Down Payment Assistance DPA

Combined with a Home Advantage first mortgage, this down payment assistance loan can provide up to 4 percent of the total amount of your mortgage (or 5 percent if you’re taking out a conventional HFA Preferred loan). There is no interest charged on the loan, and payments are deferred for 30 years.

Home Advantage DPA Needs Based

Also paired with a Home Advantage first mortgage, this program is for homebuyers making considerably less than the $145,000 income threshold. If your annual income is less than $105,300 (or $134,600 in King or Snohomish counties), you could be eligible for up to a $10,000 loan for your down payment needs. You’ll pay 1 percent interest on the loan, and your payments are deferred for 30 years.

Opportunity DPA

This down payment assistance program, combined with the House Key Opportunity first mortgage, is a second mortgage of up to $10,000, with a 1 percent interest rate and 30-year deferred payments. The income limits are much lower and vary based on location and number of people in the household: County 1-2 persons 3+ people As of May 9, 2022
Source: King, Snohomish $76,250 $95,300 Clark, Kitsap, Pierce, Skamania, Thurston, Whatcom $68,200 $85,200 All others $55,900 $69,850

Veterans DPA

Veterans and their surviving and never-remarried spouses and dependent children can also qualify for up to $10,000 in down payment funds packaged as a second mortgage. The payments on the mortgage are deferred for 30 years, with an interest rate of 3 percent. The assistance can be combined with either the Home Advantage or House Key Opportunity first mortgage.

HomeChoice Disability DPA

If you or someone in your household is living with a disability, you might qualify for up to $15,000 in down payment assistance, also as a second mortgage. The second loan has a 1 percent interest rate and, like other down payment assistance, defers payments for 30 years.

Other first-time homebuyer loan programs

First-time homebuyers in Washington can also find help through local housing initiatives. In Seattle, for example, individual homebuyers with an annual income under $75,380 (the limit is higher for larger households) could qualify for up to $55,000 to cover closing costs and a portion of a down payment. Other areas, including Tacoma, Bellingham and Pierce County, have similar programs. It’s not just about where you buy, either — where you get the financing for your home can make a big difference in your ability to get assistance. For example, , the Boeing Employees’ Credit Union based in Washington, offers a first-time homebuyer grant up to $7,500 for eligible members. Grants are typically better than second mortgages because you don’t have to pay them back (although some second mortgage loans are forgivable after a certain timeframe). Lightbulb Bankrate Insight Be sure to use Bankrate’s to find out if you qualify for other nationally-available forms of assistance.

Get started

Ready to move one step closer toward buying your first home in Washington? As you sort through mortgage and down payment assistance options, you can fill out through the Washington State Housing Finance Commission so that the agency can help you determine which programs best fit your needs. As you start searching for a mortgage lender, be sure to compare options from different lenders. You can use the to find loan officers to help you navigate the process. Each works for a lender that could have different and terms, so comparison is key.

First-time homebuyer programs in nearby states

SHARE: Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters.

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