Home Advantage DPA
Open · Deferred loan
3%, 4%, or 5% of the first-mortgage loan amount
A 0% interest, payment-deferred second loan paired with the Commission's Home Advantage first mortgage, usable for down payment and closing costs. It is not forgiven: the balance is due on sale, refinance, transfer, when the home stops being your principal residence, or when the first mortgage is paid off (at 30 years or earlier). Buyers purchasing under $250,000 may use the Home Advantage Needs-Based DPA (up to $10,000 at 1%) instead.
Who qualifies: First-time homeownership not required. Household income must not exceed $215,000. Owner-occupied principal residence only. Must attend a free Commission-sponsored homebuyer education class. Must use a Commission-trained lender.
Washington State Housing Finance Commission · Agency website → · Checked 2026-09-30
Covenant Homeownership Program
Funding rounds · Deferred loan
Up to 20% of the cost of the home, up to $150,000, plus closing costs
A payment-deferred second loan for down payment and closing costs, paired with a Home Advantage or House Key Opportunity first mortgage. A 2025 amendment (H.B. 1696) allows loan forgiveness for some participants; the program page does not spell out who qualifies for forgiveness. Demand exceeds monthly funding, so lenders must first place buyers on a pre-reservation list, and buyers may only go under contract after written authorization.
Who qualifies: First-time homebuyer (borrower and spouse) under the Act's definition. Household income at or below 120% of AMI (county limits effective 6/8/2026, e.g. $197,300 in King and Snohomish). The buyer or a parent, grandparent or great-grandparent lived in Washington before April 1968 and belongs to one of the groups named in the Act (Black, Hispanic, Native American/Alaska Native, Native Hawaiian or other Pacific Islander, Korean or Asian Indian), with documentation. Homebuyer education class required.
Washington State Housing Finance Commission · Agency website → · Checked 2026-09-30