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 into the state than out of it over the past three decades, according to the Washington State Office of Financial Management.
That influx can spell difficulties for first-time homebuyers, 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 buyers. The state’s definition of a first-time homebuyer allows some leeway, too: someone who hasn’t owned and occupied a primary residence in the last three years.
Washington homebuying statistics
Median sale price, as of January 2025: $604,900 (Redfin)
Median down payment, as of December 2024: $111,150 (Attom)
Most affordable counties in the state, as of February 2025: Garfield, Ferry, Columbia and Lincoln
Washington first-time homebuyer loan programs
The Washington State Housing Finance Commission (WSHFC) oversees 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 and meet other program requirements.
WSHFC Home Advantage
The Home Advantage program can help Washington first-time homebuyers qualify for a low interest rate.
Requirements
Pros and cons
WSHFC House Key Opportunity
House Key Opportunity is geared toward homebuyers with lower incomes who are also leveraging certain down payment assistance programs.
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 guide to the 80 percent limits by county.
Requirements
Pros and cons
WSHFC EnergySpark
If you qualify for the Home Advantage program, you might want to explore buying a home that is especially eco-friendly or can be renovated to meet Washington’s green standards. If so, you could be eligible to take advantage of the EnergySpark program, which offers an additional discount on your interest rate.
Requirements
Pros and cons
Washington down payment assistance and grants
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 down payment assistance through the agency.
To qualify for the following assistance programs, you’ll need a minimum credit score of 620 and have to meet income requirements, which vary by program. You could also be eligible if you’re not a first-time buyer 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 (up to 5 percent if getting a conventional or FHA loan). A household income limit of $180,000 applies.
Pros and cons
Home Advantage DPA Needs Based
Combined with a Home Advantage first mortgage, this program is for homebuyers making considerably less than the $180,000 income threshold. If your annual income is less than $115,900 (or $147,400 in King or Snohomish counties), you could be eligible for up to a $10,000, 30-year loan for your down payment needs. You’ll pay 1 percent interest on the loan but won’t repay the funds and interest until the loan term ends.
Pros and cons
Opportunity DPA
This down payment assistance program, combined with the House Key Opportunity first mortgage, is a second mortgage of up to $15,000, with a 1 percent interest rate and 30-year deferred payments. Buyers must attend an educational course to qualify.
Pros and cons
The income limits for the Opportunity DPA program, as of April 22, 2024, are much lower than the House Key Opportunity first mortgage and vary based on location and number of people in the household:
County
1-2 person household
3+ person household
King, Snohomish
$88,800
$110,950
Clark, Kitsap, Pierce, Skamania, Thurston, Whatcom
$75,550
$94,400
All others
$63,950
$79,900
Source: Washington State Housing Finance Commission
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.
Household income limits do apply: $147,400 for King and Snohomish counties and $115,900 in all other counties across the state.
Pros and cons
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. Income limits do apply– $147,400 for those buying property in King or Snohomish counties and $115,900 for those in other counties statewide.
Pros and cons
BECU First-Time Homebuyer Grant
The Boeing Employees’ Credit Union (BECU) based in Washington, offers a first-time homebuyer grant of up to $8,000 for eligible BECU members. The home must serve as your primary residence and you’ll need to stay there at least three years.
Pros and cons
City-specific homebuyer assistance programs
First-time homebuyers in Washington can also find help through local housing initiatives.
King County (area east of Seattle, including Bellevue)
Though the City of Seattle’s down payment assistance program has ended, funds are still available in the area via the ARCH East King County Downpayment Assistance Loan Program.
Requirements
Pros and cons
Spokane
SNAP operates an assistance program in its Spokane region designed to make homeownership more attainable for eligible buyers. Applicants may apply for a loan of up to 100 percent loan-to-value (LTV).
Requirements
Pros and cons
Tacoma
The City of Tacoma operates a down payment assistance program in partnership with the Tacoma Community Redevelopment Authority (TCRA). Applications are open through December 2025 or until funds have been exhausted. Assistance comes in the form of a 25-year, interest-free loan of up to $60,000.
Requirements
Pros and cons
Clark County (Vancouver, Washington area)
Clark County residents using a WSHFC mortgage (Home Advantage or House Key) may be eligible for Homebuyer Downpayment Assistance. The program offers up to $60,000 in down payment and closing cost assistance.
Requirements
Pros and cons
Other first-time homebuyer loan programs
While you’re considering first-time buyer programs in Washington, be sure to explore the variety of nationally available loan programs, too, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment as little as 3.5 percent.
VA loans – If you’re a member of the military or a veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Ready to move one step closer to your first home in Washington? As you prepare to become a first-time homebuyer, here are some next steps:
Do your homework. As you sort through mortgage and down payment assistance options, you can fill out this form through the Washington State Housing Finance Commission to help determine which programs best fit your needs.
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number.
Compare lenders. You can use the WSHFC website to find loan officers to help you navigate the process. Each works for a lender that could have different interest rates and terms, so comparison and rate-shopping are key to securing a competitive loan.
Shop for homeowners insurance. Because insurance can make a significant impact on your monthly budget, shopping local insurers is also a good way to prepare. Ask multiple companies for competing quotes to find a policy that best fits your needs.
Explore other first-time homebuyer programs by state
