Washington First-Time Home Buyer Grants

In the state of Washington, first-time home buyer, is a person who has not owned and occupied a principal residence in the past three years, with exceptions for buyers in targeted areas. We published this guide to examine Washington’s top 2025 first-time home buyer programs, down payment assistance, grants and links for state and local initiatives, and presents two case studies to underscore their impact.

Washington State’s housing market, with a median home price of $585,000 in the first three quarters of 2024, presents significant hurdles for first-time home buyers, especially in high-cost areas like Seattle, Tacoma, and Spokane. The median down payment was $80,554 for single-family homes during this period, making upfront costs a major barrier. The state of Washington continues to offer a range of state, local, and federal programs providing down payment assistance (DPA), grants, and low-interest loans to make homeownership more accessible.

2025 Washington State First-Time Home Buyer Programs

The Washington State Housing Finance Commission (WSHFC) is the primary provider of first-time home buyer programs, offering 30-year fixed-rate mortgages (FHA, VA, USDA, or conventional) paired with DPA.

WA lenders typically require a minimum credit score of 620 (640 for some programs), a debt-to-income (DTI) ratio of 45–50%, completion of a WSHFC-approved homebuyer education course, and a minimum borrower contribution of 1% of the purchase price.

This year the income limits range from $100,000–$180,000, and purchase price limits vary from $345,000–$750,000 by area. The maximum mortgage loan amount for these Washington first time home buyers is $806,500.

1. WSHFC Home Advantage Program

The Home Advantage Program offers 30-year fixed-rate mortgages (FHA, VA, USDA, or conventional) for first-time buyers or those in targeted areas. It supports single-family homes, condos, townhouses, and manufactured homes. The program includes DPA up to 4% of the first mortgage amount as a 0% interest, 30-year deferred home equity loan, repayable upon sale or refinance. A homebuyer education course is required. Details at WSHFC Home Advantage.

2. WSHFC Home Advantage Needs-Based DPA

This program provides up to $10,000 in DPA as a 1% interest, 30-year deferred second mortgage for low-income first-time buyers (income below 80% AMI). It pairs with the Home Advantage first mortgage and requires a 620 credit score and homebuyer education. Learn more at WSHFC Needs-Based DPA.

3. WSHFC House Key Opportunity Program

The House Key Opportunity Program offers 30-year fixed-rate mortgages with up to 5% DPA as a 0% interest, 30-year deferred second mortgage for first-time buyers or those in targeted areas (e.g., specific zip codes in King, Pierce, or Snohomish counties). It supports FHA, VA, USDA, or conventional loans and requires a homebuyer education course. Contact a participating lender at WSHFC House Key.

4. WSHFC HomeChoice Program

The HomeChoice Program targets first-time buyers with disabilities or those with a disabled household member, offering up to $15,000 in DPA as a 1% interest, 30-year deferred second mortgage. It pairs with Home Advantage or House Key first mortgages and requires special counseling. Details at WSHFC HomeChoice.

5. WSHFC Veterans Down Payment Assistance

This program provides up to $10,000 in DPA as a 3% interest, 30-year deferred second mortgage for Washington veterans, active military, National Guard, reservists, or surviving spouses with dependent children. It pairs with Home Advantage or House Key and requires a 620 credit score. See WSHFC Veterans DPA.

6. WSHFC Opportunity Down Payment Assistance

The Opportunity DPA offers up to $15,000 as a 1% interest, 30-year deferred second mortgage for first-time buyers in specific areas or with select loan types (FHA, USDA, VA, or Fannie Mae). It pairs with Home Advantage or House Key and requires homebuyer education. Details at WSHFC Opportunity DPA.

7. HomeStart Savings Program

Offered through the Federal Home Loan Bank of Seattle and local financial institutions, this program matches first-time buyers’ savings 3:1 up to $5,000 for down payment and closing costs. Income limits (80% AMI) and a homebuyer education course apply. Contact a participating lender via WSHFC HomeStart.

Local WA First-Time Home Buyer Incentives

1. City of Tacoma Down Payment Assistance

Tacoma’s program, partnered with the Tacoma Community Redevelopment Authority, offers up to $60,000 as a 0% interest, 25-year deferred loan for first-time buyers with incomes at or below 80% AMI. Applications are open through December 2025 or until funds are exhausted. A WSHFC homebuyer education course is required. Details at Tacoma DPA.

2. Clark County Down Payment Assistance

Clark County provides up to $60,000 in DPA ($45,000 from the county, $15,000 from WSHFC) as a 0% interest, 30-year deferred second mortgage for first-time buyers with incomes at or below 80% AMI. The program relaunched in February 2025. Contact Clark County DPA.

3. Bellingham Down Payment Assistance

Bellingham offers up to $40,000 in DPA as a 3% interest, 30-year deferred second mortgage for first-time buyers purchasing within city limits. Income and purchase price limits apply. Details at Bellingham DPA.

4. Seattle Office of Housing Down Payment Assistance

Seattle partners with nonprofits like HomeSight and Habitat for Humanity to provide up to $55,000 for open-market homes, $70,000 for smaller resale-restricted homes, or $90,000 for larger resale-restricted homes (3+ bedrooms). Assistance is a low-interest, deferred second mortgage for buyers at or below 80% AMI. Contact Seattle Office of Housing.

5. King County Down Payment Assistance

King County offers up to $45,000 as a 3% interest, 30-year deferred loan for first-time buyers purchasing in Auburn, Federal Way, Tukwila, or unincorporated areas. Income limits (80% AMI) apply. Details at HomeSight King County.

6. Snohomish County Down Payment Assistance

Snohomish County provides up to $50,000 as a 3% interest, 30-year deferred loan for first-time buyers purchasing within the county. A homebuyer education course is required. Learn more at HomeSight Snohomish County.

7. Spokane HomeStarts Program

Community Frameworks’ HomeStarts program offers up to $20,000 in DPA as a deferred loan for first-time buyers in Spokane County. Income limits and homebuyer education apply. Contact Spokane HomeStarts.

8. ARCH East King County Down Payment Assistance

The ARCH program provides up to $50,000 in DPA for first-time buyers in East King County (e.g., Bellevue, Kirkland). Assistance is a deferred loan with income limits (80% AMI). Details at ARCH DPA.

Case Study 1: The Martinez Family in Tacoma

The Martinez family, earning $75,000 annually, aimed to buy a $400,000 condo in Tacoma. As first-time buyers, they qualified for the WSHFC Home Advantage Program with an FHA loan requiring a 3.5% down payment ($14,000). They received a $16,000 Home Advantage DPA (4% of the mortgage, 0% interest, deferred) and a $60,000 Tacoma DPA loan (0% interest, 25-year deferral). After contributing $1,000 and completing a WSHFC-approved online course via HomeSight, they closed in March 2025. The $76,000 in assistance covered their down payment and $5,000 in closing costs, with no immediate repayments, allowing them to build equity in a competitive market.

Case Study 2: Sarah Johnson in Spokane

Sarah, a veteran earning $50,000, wanted a $300,000 home in Spokane. Through the WSHFC Veterans DPA, she received a $10,000 deferred loan (3% interest, 30-year term) paired with a House Key Opportunity VA loan (0% down). The Spokane HomeStarts program added $20,000 in DPA as a deferred loan. The New American Funding Pathway provided $6,000 for closing costs. After completing a WSHFC education seminar via SNAP, Sarah closed in April 2025. The $36,000 in assistance covered all upfront costs, enabling her to purchase without depleting her savings, leveraging her veteran status for favorable terms.

Tips for Washington First-Time Home Buyers

1. Get Pre-Approved: Obtain a pre-approval letter from a WSHFC-approved lender to clarify your budget and strengthen offers. Find lenders at WSHFC Lenders.

2. Combine Programs: Pair WSHFC’s DPA with local programs (e.g., Tacoma, Clark County) or New American Funding’s Pathway for maximum assistance, ensuring compatibility.

3. Complete Education Courses: WSHFC requires courses like those offered by HomeSight or SNAP ($50–$75). See WSHFC Homebuyer Education.

4. Check Targeted Areas: First-time buyer requirements may be waived in designated zip codes. Check WSHFC Targeted Areas.

5. Monitor Credit and DTI: Aim for a 620+ credit score and DTI below 45–50%. Use LendingTree Spring for credit monitoring.

Washington’s 7% home price increase in 2024 and 45-day median market time highlight a competitive market, especially in Seattle. DPA programs like Tacoma’s and Clark County’s are limited and first-come, first-served, with funds potentially exhausting by late 2025. Most DPA loans require repayment upon sale or refinance, and income caps (e.g., 80% AMI) may exclude buyers in high-cost areas like King County. USDA loans are restricted to rural areas, and VA loans require military eligibility. Buyers should verify funding availability and review repayment terms with lenders.

Takeaways on WA First Time Home Buyer Grants

Washington’s 2025 first-time home buyer programs, led by WSHFC’s Home Advantage, House Key, and targeted DPA for veterans and disabled buyers, alongside local initiatives in Tacoma, Clark County, and Seattle, provide critical support for overcoming high upfront costs. By combining these with federal options like FHA, VA, or HomeReady loans, buyers can minimize out-of-pocket expenses. Work with approved lenders, complete required education, and act quickly to secure limited funds, making homeownership achievable in Washington’s competitive market.

Share on Facebook

Tweet

Follow us