Specialty Loans
Down Payment Assistance
Washington programs that can cover part or all of your down payment.
Don't let the down payment stop you from buying in Washington. WSHFC and city programs offer real money — grants, deferred seconds, and forgivable loans — that can cover most or all of your down payment and closing costs. Many WA buyers qualify and never apply because they assume they make too much. Worth a five-minute check.
Available Programs
- • Home Advantage — Up to 4% of loan amount; no first-time buyer requirement
- • House Key Opportunity — First-time buyers and veterans; deeper assistance
- • HomeChoice — Up to $15,000 additional for buyers with disabilities
- • Veterans Down Payment Assistance — Up to $10,000 for WA veterans
- • City programs in Seattle, Tacoma, Bellingham, Spokane, Bremerton, and others
How it works
You apply for your first mortgage (FHA, VA, USDA, or conventional) through an approved WSHFC lender. The DPA is added as a second lien (or grant) at closing. WSHFC issues a slightly higher rate on the first mortgage to fund the assistance — usually 0.25–0.5% above standard rates. The math almost always favors taking the assistance unless you're planning to refinance within 2–3 years. I run the comparison both ways so you see exactly what the rate trade-off costs vs. saves.
What this looks like in Washington
Income limits vary by county and household size — generally $145K–$200K, which covers a huge slice of WA's workforce. Home prices in King, Snohomish, and Pierce hit WSHFC's higher acquisition limits. Eastern WA and rural counties have lower acquisition caps but easier-to-qualify income brackets. The Seattle Office of Housing has its own first-time buyer assistance that stacks. Tacoma and Bellingham run city-funded HOME programs. Always worth checking what's available in your specific city before assuming WSHFC is the only option.
Pros
- • Closes the down payment gap
- • Deferred second — no monthly payment
- • Stacks with city programs
- • Works with FHA, VA, USDA, conventional
Cons
- • First-mortgage rate slightly higher (0.25–0.5%)
- • Income limits apply
- • Education class required
- • Doesn't pair with non-QM/bank statement loans
Best for: WA buyers within county income limits who need help with the down payment or closing costs. Especially powerful for first-time buyers, veterans, and buyers with disabilities.
Common Questions
Related Loan Types
Popular WA markets for Down Payment Assistance
WSHFC down payment assistance pairs perfectly with WA's first-time-buyer markets where income limits and home prices line up — South King, Pierce, Spokane, Clark, and Whatcom counties.