First-Time Homebuyer Programs in Washington State
Buying a home for the first time is a huge milestone.
It can be a daunting experience because it’s such a major life decision to make. There’s just so much to consider! Your budget, the location, your long-term needs, and so on 😟
Don’t worry, we’re here to help you make your homeownership journey easier 😊
The good news is that in the state of Washington, there are programs offered to make homeownership more accessible for first-time buyers like you.
Let’s break them down now!
Washington State First-Time Homebuyers Programs
1. Home Advantage Program
Offered by the Washington State Housing Finance Commission, this program is one of the more popular options for new buyers!
It’s simple, reliable, and practical.
The main catch is that you’ll be given an opportunity to secure a 30-year fixed-rate mortgage, but that’s not all. You’re also provided a downpayment assistance of up to 5% of the total loan amount.
Other things you might want to know:
- It’s available to households that are earning up to $180,000
- You’re required to take a homebuyer education course. (It’s worth your time)
- The upfront costs are reduced, helping you buy a home sooner rather than later
2. Opportunity First Mortgage Loan
This arrangement is another fantastic pick for buyers in Washington State.
You get to have a downpayment assistance of up to $15,000 at just a 1% interest rate, which is deferred for 30 years. What’s not to like? You’ll be getting some extra financial support now and you don’t have to pay it back anytime soon!
Other things you might want to know:
- This program is specifically made for first-time buyers. Lower interest rates
- You’ll be taking a homebuyer education course. (It’s for your own good)
3. Mortgage Credit Certificate (MCC)
This allows clients to reduce their tax liability. How? You’ll be claiming a portion of your mortgage interest as a tax credit. Sounds good, right?
A deduction lowers the amount of your income that gets taxed, but a tax credit is even better, as it cuts down your actual tax bill, dollar for dollar. Talk about convenience 😉
Other things you might want to know:
- The tax credit is up to 20% of the annual mortgage interest
- Has certain income/purchase price limits (Contact your local housing counselor for specifications.)
- The home must be your primary residence (no investments here).
4. FHA (Federal Housing Administration) Loans
These loans aren’t just exclusive to Washington homebuyers.
You have the option to put down a lower down payment and the credit score requirements are more flexible compared to other types of loan arrangements. If you’re having trouble with your credit history, look no further.
Other things you might want to know:
- The downpayment rate can be as low as 3.5%
- It can be combined with other down payment assistance programs, allowing you to maximize your savings
- Borrowers can qualify with a credit score as low as 580.
5. Unison HomeBuyer
If you’re interested in a unique option, the Unison HomeBuyer might be the perfect match for you.
Basically, Unison will co-invest in your home purchase, providing you with additional funds. In exchange, you will be giving Unison a share of your home’s future appreciation or depreciation.
Other things you might want to know:
- There are neither monthly payments, nor interest charges
- It can be combined with traditional mortgage programs
- In the case of a depreciation, your loss would be lower when compared to doing it on your own.
6. Covenant Homeownership Program
A new program launched by WSHFC in 2024.
This helps first-time buyers with down payments and closing costs. This has a 0% interest rate and you only need to be pay back when you sell or refinance your home.
Other things you might want to know:
- You can get up to 20% of the purchase price covered, and even up to $150,000, if you're the one covering the closing costs
- If your family has been established in or if you have ties in Washington before 1968 and you really are a first-time homebuyer, and your household income is below or at 100% of the Area Median Income, you are qualified for this program.
Which First-Time Home Buyer Program is the Right One for You?
You should choose a program based on your specific needs and what you’re most financially comfortable with.
And work WithJoy.AI to buy your home and save even more! We rebate 70% of our commission back to home buyers that use us! That means if you buy a $450K home, that has a 3% buyer’s agent commission, we will rebate you $9,450 at closing!
Buying a home for the first time is a huge milestone.
It can be a daunting experience because it’s such a major life decision to make. There’s just so much to consider! Your budget, the location, your long-term needs, and so on 😟
Don’t worry, we’re here to help you make your homeownership journey easier 😊
The good news is that in the state of Washington, there are programs offered to make homeownership more accessible for first-time buyers like you.
Let’s break them down now!
Washington State First-Time Homebuyers Programs
1. Home Advantage Program
Offered by the Washington State Housing Finance Commission, this program is one of the more popular options for new buyers!
It’s simple, reliable, and practical.
The main catch is that you’ll be given an opportunity to secure a 30-year fixed-rate mortgage, but that’s not all. You’re also provided a downpayment assistance of up to 5% of the total loan amount.
Other things you might want to know:
- It’s available to households that are earning up to $180,000
- You’re required to take a homebuyer education course. (It’s worth your time)
- The upfront costs are reduced, helping you buy a home sooner rather than later
2. Opportunity First Mortgage Loan
This arrangement is another fantastic pick for buyers in Washington State.
You get to have a downpayment assistance of up to $15,000 at just a 1% interest rate, which is deferred for 30 years. What’s not to like? You’ll be getting some extra financial support now and you don’t have to pay it back anytime soon!
Other things you might want to know:
- This program is specifically made for first-time buyers. Lower interest rates
- You’ll be taking a homebuyer education course. (It’s for your own good)
3. Mortgage Credit Certificate (MCC)
This allows clients to reduce their tax liability. How? You’ll be claiming a portion of your mortgage interest as a tax credit. Sounds good, right?
A deduction lowers the amount of your income that gets taxed, but a tax credit is even better, as it cuts down your actual tax bill, dollar for dollar. Talk about convenience 😉
Other things you might want to know:
- The tax credit is up to 20% of the annual mortgage interest
- Has certain income/purchase price limits (Contact your local housing counselor for specifications.)
- The home must be your primary residence (no investments here).
4. FHA (Federal Housing Administration) Loans
These loans aren’t just exclusive to Washington homebuyers.
You have the option to put down a lower down payment and the credit score requirements are more flexible compared to other types of loan arrangements. If you’re having trouble with your credit history, look no further.
Other things you might want to know:
- The downpayment rate can be as low as 3.5%
- It can be combined with other down payment assistance programs, allowing you to maximize your savings
- Borrowers can qualify with a credit score as low as 580.
5. Unison HomeBuyer
If you’re interested in a unique option, the Unison HomeBuyer might be the perfect match for you.
Basically, Unison will co-invest in your home purchase, providing you with additional funds. In exchange, you will be giving Unison a share of your home’s future appreciation or depreciation.
Other things you might want to know:
- There are neither monthly payments, nor interest charges
- It can be combined with traditional mortgage programs
- In the case of a depreciation, your loss would be lower when compared to doing it on your own.
6. Covenant Homeownership Program
A new program launched by WSHFC in 2024.
This helps first-time buyers with down payments and closing costs. This has a 0% interest rate and you only need to be pay back when you sell or refinance your home.
Other things you might want to know:
- You can get up to 20% of the purchase price covered, and even up to $150,000, if you're the one covering the closing costs
- If your family has been established in or if you have ties in Washington before 1968 and you really are a first-time homebuyer, and your household income is below or at 100% of the Area Median Income, you are qualified for this program.
Which First-Time Home Buyer Program is the Right One for You?
You should choose a program based on your specific needs and what you’re most financially comfortable with.
And work WithJoy.AI to buy your home and save even more! We rebate 70% of our commission back to home buyers that use us! That means if you buy a $450K home, that has a 3% buyer’s agent commission, we will rebate you $9,450 at closing!
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