Washington First-Time Home-Buying Assistance Programs & Grants
(Last Updated – 06/2025)
With its abundance of forests, mountains, and water, Washington is an incredibly beautiful state. It’s also a great place to work: The ever-booming tech scene has created numerous job opportunities. It’s no wonder then that so many people, including first-time buyers, are looking to purchase a home in the Evergreen State.
But living in Washington isn’t necessarily cheap: Homes sell for an average of $611,301, according to Zillow, which is substantially higher than the U.S. average of $367,969.
If you’re a first-time homebuyer in Washington, however, several first-time homebuyer programs in the state may help you save on your first home, and other resources can make purchasing property more affordable. Read on for details.
Who Is Considered a First-Time Homebuyer in Washington?
In Washington, anyone who hasn’t owned a home in the last three years is considered a first-time homebuyer. Some programs may offer access to those who don’t fit this mold — if you purchase a home in a target area or are an honorably discharged veteran, for example — so it can be worthwhile to check the fine print.
💡 Quick Tip: You deserve a more zen mortgage loan. When you buy a home, SoFi offers a guarantee that your loan will close on time. Backed by a $10,000 credit.‡
3 Washington Programs for First-Time Homebuyers
First-time homebuyer programs in the state are accessible through the Washington State Housing Finance Commission’s Here to Home homeownership site. The programs may have certain requirements, including income caps and purchase price maximums. However, if you meet the criteria, you can save on the interest with special mortgage loans or get down payment and closing cost assistance.
1. WSHFC: Home Advantage Program
This first-mortgage loan program can help homebuyers with a household income under $180,000 (no matter your family size or location) get a low-interest rate on a mortgage.
You’ll need to attend a free Homebuyer Education Seminar. Once you receive your certificate of completion, contact a Commission-Trained loan officer to see if you qualify for the program.
2. WSHFC: House Key Opportunity Program
This program offers the best loan terms for first-time homebuyers with low to moderate incomes (meaning those who have never owned a home or haven’t owned and occupied a home in the last three years) or who are looking to purchase a home in a target area.
There are income and acquisition cosst limits you must meet, and you will likely need a credit score of at least 620. Plus you will also need to attend a free homebuyer education course offered by WSHFC.
3. WSHFC: Down Payment Assistance
If you take out a mortgage through either of the above WSHFC programs, you may also be eligible for its Down Payment Assistance program, which provides, on average, $10,000 to be used toward a down payment. The loan is likely to be deferred, and you won’t have to pay until the mortgage is paid off or you sell or transfer the property.
To qualify, you must have a household income within certain limits and a credit score of 620 or more. Using an online mortgage calculator can help you see how much you’d pay for a home loan each month and size up various options.
How to Apply to Washington Programs for First-Time Homebuyers
First you must meet the program’s qualifications, as outlined above. In addition, you may need to attend a free Homebuyer Education Seminar. The next step in the process is to contact a loan officer trained by the commission to see if you qualify. Find out more at the WSHFC website .
Federal Programs for First-Time Homebuyers
A number of federal government programs exist for people with low credit scores or limited down payment funds. Although they are sometimes for repeat homeowners, these national programs can be very helpful for people who are buying a first home or who haven’t owned a home in several years.
The mortgages are generally for single-family homes, two- to four-unit properties that will be owner-occupied, approved condos, townhomes, planned-unit developments, and some manufactured homes.
Federal Housing Administration (FHA) Loans
The FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Here are a few key points to note:
• Homebuyers choose from a list of approved lenders participating in the FHA loan program. Loans offer competitive interest rates and require down payments of 3.5% of the purchase price. Borrowers typically need FICO® credit scores of 580 and up. A buyer with a score as low as 500 must put down 10% or more.
• FHA loan limits in 2025 range from $524,225 for single units to $1,008,300 for four-unit properties, with higher limits in high-cost areas.
• In addition to examining your credit score, lenders will typically look at your debt-to-income ratio (DTI, your monthly debt payments compared with your monthly gross income). FHA allows a DTI of up to 57%, vs. a typical 45% to 50% maximum for a conventional loan.
• If you are lucky enough to receive gift money for the down payment, that is often allowed from certain donors and will be documented in a gift letter for the mortgage.
• FHA loans always require mortgage insurance premiums (MIP): This includes a fee of 1.75% of the base loan amount, which can be rolled into the loan, upfront. Borrowers also carry annual premiums for the life of the loan. As of 2025, monthly MIP for new homebuyers is 0.15% to 0.75%. A down payment of at least 10% allows the removal of mortgage insurance after 11 years. For a $300,000 mortgage balance, upfront MIP would be around $5,250 and monthly MIP, at a rate of 0.55%, would be about $137.
Want to learn more about these loans, including FHA loans for refinance and rehab of properties? Read up on FHA requirements, loan limits, and rates.
Freddie Mac Home Possible Mortgages
Low- and very low-income borrowers may make just a 3% down payment on a Home Possible® mortgage. Consider these points:
• These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity.
• The Home Possible mortgage is for buyers who have a credit score of at least 660.
• The Home Possible mortgage is for buyers who have a credit score of at least 660. Once you pay 20% of your loan, the mortgage insurance will be canceled, which will lower your mortgage payments.
Fannie Mae HomeReady Mortgages
HomeReady® Mortgages allow down payments as low as 3% for low-income borrowers. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above. Like those offered by the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants.
For income limits, a comparison to an FHA loan, and other information, go to this Fannie Mae site .
Fannie Mae Standard 97 LTV Loan
The conventional 97 LTV loan is for first-time homebuyers of all income levels who have a credit score of 620 or better and meet debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get down payment and closing cost assistance from third-party sources.
Department of Veterans Affairs (VA) Loans
Active members of the military, veterans, reservists, and surviving spouses who are eligible may apply for loans backed by the Department of Veterans Affairs. Here are some of the advantages:
These loans designed for those who serve our country do not require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20%. And they have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.
• VA loans, which can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment. Most borrowers pay a one-time funding fee that can be rolled into the mortgage.
• VA loans do not require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20%.
• These loans have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.
Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA, so make sure to review a guide to qualifying for a VA loan as a first step in the process.
💡 Quick Tip: A VA loan can make home buying simple for qualified borrowers. Because the VA guarantees a portion of the loan, you could skip a down payment. Plus, you could qualify for lower interest rates, enjoy lower closing costs, and even bypass mortgage insurance.†
Native American Veteran Direct Loans (NADLs)
These no-down-payment loans for eligible Native American veterans and their spouses may be used to buy, improve, or build a home on federal trust land. Unlike VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. The VA requires no mortgage insurance, but it does charge a funding fee. You can learn more about these loans by emailing [email protected].
US Department of Agriculture (USDA) Loans
No down payment is required on these loans to moderate-income borrowers that are guaranteed by the USDA in specified rural areas. Borrowers pay an upfront guarantee fee and an annual fee that serves as mortgage insurance.
The USDA also issues loans to low- and very low-income people directly. For loan basics and income and property eligibility, head to this USDA site .
HUD Good Neighbor Next Door Program
If you are a police officer, firefighter, emergency medical technician, or teacher, you may qualify for an affordable path to homeownership in the area you serve. Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years.
Visit the HUD program page for more information.
First-Time Homebuyer Stats for 2025
Here are a few numbers to know about homebuyers in America:
• Percentage of buyers nationwide who are first-time buyers: 24%
• Median age of first-time homebuyers: 38
• Median down payment for first-time homebuyer: 9%
• Average home price in Washington: $611,301
• Median list price in Washington: $624,650
• Percent of sales over list price in Washington: 38%
• Percent of sales under list price in Washington: 37%
• Average credit score of homebuyer in Washington: 735
Financing Tips for First-Time Homebuyers
Now that you know the mortgage basics for a first-time homebuyer in Washington, here are other financial strategies that may help you purchase a house.
• Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. A first-time homebuyer, for the purposes of IRA withdrawals, is someone who has not owned a principal residence in the last two years.
You will still owe income tax on any IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside is that large withdrawals may take a sizable bite out of your retirement savings.
• Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of those contributions for any reason, though you need to have held the account for five years.
You can also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years. With accounts held for less than five years, homebuyers will pay income tax on earnings withdrawn.
• 401(k) loans. If your employer sponsors and allows borrowing from a 401(k) plan, you can consider taking a loan against the 401(k) account to help finance your home purchase.
With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000, within a 12-month period without incurring taxes or penalties.
• State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.
• The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas can claim a portion of their mortgage interest as a tax credit, up to $2,000. Any additional interest paid can still be used as an itemized deduction.
To qualify for the credit, you must be a first-time homebuyer, live in the home, and meet income and purchase price requirements, which vary by state. If you refinance, the credit disappears, and if you sell the house before nine years, you may have to pay some of the tax credit back. There are fees associated with applying for and receiving the mortgage credit certificate that vary by state. Often, the savings from the lifetime of the credit can outweigh these fees, however.
• Your employer. Your employer may offer access to lower-cost lenders and real estate agents in your area, as well as home buying education courses. It can be worthwhile to check with your benefits team to see what may be available.
• Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.
Finally, using an online home affordability calculator can show you how much house you can afford.
The Takeaway
First-time homebuyers in Washington may qualify for one of the state’s programs designed to help them save money on a mortgage, down payment, and closing costs. There are also other options, such as federal and conventional loans, that can help them achieve their goal of owning a home in the Evergreen State.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.FAQ
Should I take first-time homebuyer classes?
It can be a smart move. First-time homebuyer classes can help familiarize you with the lingo involved with buying a home, as well as important principles and steps to follow when purchasing a property. First-time homebuyer classes are also required for many government-sponsored loan programs. And for everyone else, this experience is a great way to get acquainted with the home-buying process before you dive into your search in earnest.
Do first-time homebuyers with bad credit qualify for homeownership assistance?
Often they do. Many government and nonprofit homeowner assistance programs are available to people with not-so-great credit scores. And often, interest rates and other loan pricing are competitive with those of loans available to borrowers with higher credit scores. Almost any lending program has credit qualifications, so do your research.
Is there a first-time veteran homebuyer assistance program in Washington?
Yes. WSHFC has a Veterans Downpayment Assistance Loan Program that can help first-time veteran homebuyers with up to $10,000 in assistance with a down payment on a home. The U.S. Department of Veterans Affairs also offers home loans to servicemembers, veterans, and eligible surviving spouses.
What credit score do I need for first-time homebuyer assistance in Washington?
Credit score requirements vary, depending on the homebuyer assistance program. For example, the Down Payment Assistance Program offered by WSHFC requires a credit score of 620, but exceptions occur.
What is the average age of first-time homebuyers in Washington?
The average age of a first-time homebuyer has increased to an all-time high of 38, according to data from the National Association of Realtors®.
Photo credit: iStock/MarkHatfield
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