2025 Guide | First-Time Homebuyer Programs in Washington: Grants, Zero-Down Options & DPA
If you're buying your first home in Washington, you may be eligible for programs that reduce your down payment, lower your monthly cost, or eliminate your upfront cash requirement altogether. This guide breaks down the most impactful first-time buyer programs in the state so you understand which ones fit your situation.
VA Loan — 0% Down (For Eligible Veterans & Active Duty)
The VA loan remains one of the strongest homebuyer programs available. It offers:
0% down payment
No mortgage insurance
Flexible credit guidelines
Competitive interest rates
Lower monthly payments
If you're military or a veteran, this is often the best combination of affordability and long-term savings.
➡️ Related: What Should Military Families Know When Relocating to Washington (PCS Move) and Buying a Home?
USDA Loan — 0% Down (For Rural-Eligible Areas)
Many Washington buyers are surprised to learn they qualify for zero-down in rural-approved locations. Areas in:
Thurston County
Pierce County (outside city limits)
Kitsap County
Mason County
Lewis County
often qualify.
Benefits include:
0% down
Low mortgage insurance
Flexible credit requirements
If you're open to homes just outside major cities, USDA can be a powerful option.
FHA Loan — 3.5% Down
FHA loans offer flexibility for buyers who want a low down payment or have credit challenges.
Benefits include:
3.5% down
As low as 580 credit score
Higher allowable debt-to-income
Predictable, stable terms
A good choice for buyers needing affordability and broader approval options.
Conventional Loans — 3% Down for First-Time Buyers
Conventional loans are designed for long-term savings and lower mortgage insurance.
Benefits include:
3% down for first-time buyers
Lower private mortgage insurance
No upfront mortgage insurance fee
Strong equity growth potential
Ideal for buyers with strong credit or buyers comparing long-term cost differences between FHA and Conventional.
Washington State Down Payment Assistance (DPA) Programs
Washington State Housing Finance Commission (WSHFC) programs offer assistance paired with FHA, VA, USDA, or Conventional loans.
Highlights include:
Assistance of 4%–5% of the loan amount
Low or zero-interest second mortgage
Income-based qualification
Repayment triggered only when you sell, refinance, or pay off your mortgage
These programs help buyers with steady income but limited upfront savings.
Covenant Down Payment Assistance — Up to $150,000 for Eligible Buyers
One of the most powerful programs available today is the Covenant Down Payment Assistance Program, offering up to $150,000 to eligible homebuyers in Washington.
This program was created to address historic housing inequality and help first-time buyers build generational wealth through homeownership.
Program Highlights
Up to $150,000 in assistance
Designed for buyers who have faced systemic barriers to homeownership
Can dramatically reduce your monthly payment
Can eliminate mortgage insurance
Can increase your purchase power by hundreds of thousands
Structured as a forgivable or low-interest second mortgage (depending on criteria)
Who Is Eligible
General guidelines include:
First-time homebuyer status
Income limits based on county
Generational ties to communities impacted by historic housing discrimination
Buyers whose families were excluded from homeownership opportunities
This program can completely change what’s possible for eligible Washington buyers.
Why This Matters
The Covenant Program allows many buyers to:
Buy sooner
Buy with little to no upfront cash
Reduce long-term housing expenses
Build equity faster
It is one of the largest and most impactful assistance programs available today.
Local Grants & Community Assistance Programs
Some Washington counties, cities, and employers offer additional resources, including:
Closing cost grants
First responder programs
Teacher and medical worker incentives
Employer-assisted down payment funds
Availability varies based on funding cycles.
How These Programs Affect Income Requirements
Using assistance programs can significantly reduce the income needed to qualify. Lower down payments, reduced mortgage insurance, and large DPA contributions all lower the monthly payment.
If you’re comparing what income you'll need, this guide helps:
➡️ How Much Income Do You Need to Buy a Home in Washington? (2025 Affordability Guide)
Choosing the Right Program for Your Situation
The best program depends on:
Your savings
Your credit score
Your monthly debt
Your employment history
Your long-term goals
Loan type eligibility
Whether you qualify for VA, USDA, WSHFC, or Covenant
Many buyers will qualify for multiple programs, so comparing payments and long-term benefits is essential.
Final Thoughts
Washington offers more homebuyer support programs than most states — including some of the strongest zero-down and high-assistance options in the country. Whether you're eligible for VA, USDA, WSHFC down payment assistance, or the groundbreaking Covenant Program, there is likely a path that fits your budget and long-term goals.
If you want to explore zero-down options, grants, or down payment assistance programs — including the Covenant Program — reach out anytime. I’ll walk you through what you qualify for and help you take the clearest path to becoming a homeowner in Washington.
Written by: Lani Fisher, Washington Realtor & First-Time Homebuyer Specialist