A Washington Down Payment Program That Covers Up to 20 Percent Down. Here Is Who It Is Really For…

One of the most common things I hear from buyers is, “I would love to own a home, but I will never save enough for a down payment.”

What many people do not realize is that Washington State has a down payment assistance program that can cover up to 20 percent down with zero interest for buyers who meet very specific criteria.

It is called the Covenant Homeownership Down Payment Assistance Program, and it was created to address long term impacts of historical housing discrimination.

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What the Covenant Homeownership Program Offers

This program provides qualified first time homebuyers with up to 20 percent down payment assistance, capped at $150,000, plus eligible closing costs.

The loan is zero interest and is designed to help buyers bridge the gap that has kept homeownership out of reach for generations.

It can be used on a wide range of property types, including single family homes, condos, townhomes, manufactured homes, and certain duplexes.

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Who This Program Is Designed For

This is where the program becomes very specific.

The Covenant Homeownership DPA Program is designed for first time homebuyers in Washington who were impacted by racially restrictive housing covenants prior to April 11, 1968, or who are descendants of someone who was.

It also applies to buyers who identify as Black, Hispanic, Native American, Alaska Native, Native Hawaiian or other Pacific Islander, Korean, or Asian Indian.

Eligibility is not based on credit alone, and income limits are higher than many people expect, though you cannot exceed them even by one dollar.

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Additional Requirements to Know About

There are a few important requirements buyers should be aware of.

The home must be purchased as a primary residence.
Buyers must complete a state sponsored homebuyer education class.
A home inspection is required.
Documentation is required to support eligibility, including family records or historical documents when applicable.

While this may sound intimidating at first, many buyers find the process very manageable with the right lender and guidance.

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Why This Program Matters Right Now

With home prices and interest rates still challenging for many first time buyers, programs like this can make the difference between waiting indefinitely and actually moving forward.

I am seeing many people assume they do not qualify without ever asking the question. In reality, some buyers are closer to eligibility than they think.

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Final Thoughts

If you or someone you know has felt like homeownership was never meant to be an option, this is a program worth learning about.

Even if you are unsure whether you qualify, a simple conversation can help clarify next steps and avoid missing an opportunity that was specifically created to help.

If you would like more information, I am always happy to connect you with a trusted lender who specializes in this program and walk through how it could apply to your situation.