Washington’s DPA ecosystem is anchored by the Washington State Housing Finance Commission (WSHFC) — the state’s primary housing finance agency. WSHFC administers a comprehensive suite of programs including the flagship Home Advantage DPA, specialized programs for veterans and disabled buyers, and the landmark Covenant Homeownership Downpayment Assistance Program — the nation’s first Special Purpose Credit Program designed to address and remedy historical housing discrimination.
Washington’s high home prices — statewide median approaching $600,000 in late 2025 — make DPA particularly impactful.
The Bookspan Baker Team at Guild Mortgage is an approved WSHFC participating lender.
WSHFC’s flagship homebuyer program — a 30-year fixed-rate first mortgage (FHA, VA, USDA, or conventional) paired with a DPA second mortgage.
30-year fixed-rate; competitive WSHFC interest rate
Available to first-time buyers AND repeat buyers who meet income limits
Compatible with FHA, VA, USDA, and conventional loan types
Homebuyer education course required (5-hour online seminar or self-study)
Minimum credit score: 620–640
Income limit: Up to $180,000–$215,000 (varies by lender)
Amount: 3–5% of the first mortgage loan amount (up to 5% for conventional or FHA)
Interest Rate: 0%
Monthly Payments: None — fully deferred for 30 years
Repayment Due: When you sell, refinance, pay off the first mortgage, or no longer occupy as primary residence — or at the end of 30 years, whichever comes first
Income Limit: $180,000 household income
Amount: Up to $10,000 at 1% interest, 30-year deferred
Eligibility: Buyers under specific lower income limits; needs-based assessment by loan officer
Veterans automatically eligible: Veterans qualify for the $10,000 needs-based amount without the income assessment
Practical example: On a $450,000 purchase with a $427,500 first mortgage, 5% DPA provides $21,375 — covering FHA’s 3.5% down payment plus substantial closing cost coverage.
Below-market rate first mortgage for lower-income buyers. Income limits: $100,000–$175,000 depending on county and household size. Purchase price limits apply. Pairs with Opportunity DPA (up to $15,000).
WSHFC’s dedicated DPA for eligible veterans:
Amount: Up to $10,000
Interest Rate: 3%
Monthly Payments: None — 30-year deferred
Eligibility: Eligible veterans using a WSHFC Home Advantage or House Key first mortgage
Since VA loans require no down payment, this $10,000 typically covers closing costs — often making total cash to close near-zero for eligible veterans
WSHFC’s HomeChoice program for buyers with disabilities or a household member with a disability:
Amount: Up to $15,000
Interest Rate: 1% simple interest
Monthly Payments: None — deferred until sale, refinance, or payoff
Pairing: Must be used with a WSHFC Home Advantage or House Key first mortgage
Washington’s landmark Covenant Homeownership DPA is the nation’s first Special Purpose Credit Program specifically designed to address the legacy of discriminatory housing policies — including racially restrictive covenants, redlining, and other systemic barriers — that prevented specific communities from building home equity in the 20th century.
Created by the Washington State Legislature and funded by a $100 recording assessment on every real estate transaction in Washington — Washington was the first state in the country to pass such
legislation.
Key features:
Available to: At least one homebuyer on the note and deed of trust must occupy the home and have been (or have a parent or grandparent who was) a Washington State resident before April 11, 1968, and be in one of the communities identified in the Covenant Homeownership Study: Black, Hispanic, Native American, Alaska Native, Native Hawaiian, Pacific Islander, Korean, or Asian Indian
First Mortgage Required: Home Advantage or House Key first mortgage
Phase II expanded eligibility beyond Phase I
Contact WSHFC or a participating lender for current funding and amounts
Tacoma DPA (Pierce County): Up to $60,000 as a 0% interest, 25-year deferred loan for first-time buyers with incomes at or below 80% AMI within Tacoma city limits.
Clark County DPA (Vancouver area): Up to $60,000 ($45,000 county + $15,000 WSHFC) as a 0% interest, 30-year deferred second mortgage for first-time buyers at or below 80% AMI. Relaunched February 2025.
Seattle Office of Housing: Various programs for income-eligible buyers within Seattle city limits.
Federal Home Loan Bank HomeStart: Matches first-time buyers’ savings 3:1 up to $5,000 for down payment and closing costs (80% AMI limit; through participating lenders).
A 0% interest, 30-year deferred second mortgage of 3–5% of the first mortgage amount — no monthly payments until you sell, refinance, or move out. Available to repeat buyers as well as first-time buyers who meet income limits.
Washington’s landmark Special Purpose Credit Program — the first of its kind in the nation — providing DPA for buyers from communities historically excluded from homeownership by discriminatory housing policies. Funded by a $100 recording assessment on all Washington real estate transactions.
Yes. The Veterans DPA provides up to $10,000 deferred at 3% for eligible veterans using a WSHFC first mortgage alongside a VA loan — typically covering closing costs for near-zero total cash to close.
Yes — unlike many state DPA programs, Home Advantage is available to repeat buyers who meet income limits, not just first-time buyers.
