Washington State Housing Finance Commission (WSHFC) Downpayment Assistance Program

Washington State Housing Finance Commission (WSHFC) Downpayment Assistance Program

For many homebuyers in Washington, saving for a down payment is one of the biggest barriers to homeownership. Fortunately, the Washington State Housing Finance Commission (WSHFC) offers a variety of down payment assistance (DPA) programs designed to help qualified buyers across the state bridge that gap and take the next step toward owning a home.

As a mortgage professional familiar with Washington lending programs, I work directly with eligible buyers to explore options offered through WSHFC, helping clients navigate the process and access financial tools tailored to their goals and budget.

What Is Downpayment Assistance?

Downpayment assistance refers to funds made available to help homebuyers cover the upfront costs of purchasing a home—primarily the down payment, but in some cases closing costs as well. These funds are often structured as **second mortgages**, and many of WSHFC’s options come with **deferred payments** and **low or no interest rates**, meaning repayment may not be required until the home is sold, refinanced, or paid off.

WSHFC offers multiple assistance programs that are paired with eligible first mortgage options. These programs are available throughout the state, not limited to specific cities or counties.

Who Oversees the Program?

The Washington State Housing Finance Commission is a public agency established in 1983. Its mission is to provide access to affordable housing for Washington residents through home loan programs, educational resources, and special financing tools like down payment assistance. The Commission works in partnership with lenders, real estate professionals, and non-profits to help qualified borrowers access affordable mortgage solutions across Washington.

Common WSHFC Downpayment Assistance Programs

There are several DPA programs administered by WSHFC, each designed to serve different needs and borrower profiles. As a mortgage broker, I help determine which of these programs may apply based on income, location, household size, and property type.

• Home Advantage DPA: Offers up to 4% of the first mortgage loan amount. The funds come in the form of a **0% interest, deferred-payment second mortgage**, which is repaid only when the borrower sells, refinances, or pays off the home.
• Opportunity DPA: Offers up to $15,000 in assistance. This program is **income-restricted** and must be paired with the Opportunity first mortgage loan product.
• Veterans DPA: For eligible Washington veterans or active-duty military members. Offers up to $10,000 with **0% interest** and **deferred repayment**.
• HomeChoice Program: Designed for buyers with disabilities or family members with disabilities. Offers up to $15,000 in assistance under the same deferred second mortgage terms.
• House Key Schools: May be available for employees of eligible Washington public K-12 schools. Includes enhanced DPA for educators and school staff.

Each program is subject to availability and may include specific property and income limits. Program structures and amounts are subject to change based on state funding and guidelines.

How the Downpayment Assistance Loan Works

Most WSHFC assistance options function as a **second mortgage**, but unlike typical loans, they come with unique features designed to reduce financial strain:

• 0% interest in most cases
• No monthly payments—repayment is deferred
• Only repaid when the home is sold, refinanced, transferred, or paid off

This structure allows first-time buyers in Washington to focus on their monthly housing payments without having to worry about an additional second mortgage bill.

Who May Qualify?

WSHFC downpayment assistance programs are designed to support a broad range of buyers, but some basic eligibility criteria apply:

• Borrowers must meet **program-specific income limits**, which vary by county and household size
• The home must be used as the **primary residence**
• A minimum credit score is generally required (often 620 or higher)
• Completion of a **WSHFC-approved homebuyer education course** is mandatory
• First-time homebuyer status is required for many (but not all) programs

Some programs also have targeted availability for veterans, disabled individuals, or those in specific professions.

First Mortgage Pairing Options

To use a WSHFC DPA program, borrowers must pair the assistance with an eligible first mortgage product—typically one of the following:

• Home Advantage First Mortgage: A 30-year, fixed-rate loan offered through WSHFC-approved lenders. Available statewide and commonly used in tandem with the Home Advantage DPA.
• House Key Opportunity First Mortgage: A more restrictive program with income and property limits but paired with larger assistance amounts. Often used with programs like the Opportunity DPA or HomeChoice.

Both first mortgage types may be used with FHA, VA, USDA, or conventional loan structures, depending on the borrower’s qualifications and property type.

Benefits of WSHFC Downpayment Assistance

The primary benefit of WSHFC DPA programs is reducing or eliminating the need for upfront down payment funds, which helps many buyers enter the market sooner.

Other potential advantages include:

• Access to affordable first mortgage rates through WSHFC-approved lenders
• No repayment required on assistance until the home is sold or refinanced
• Support for low- to moderate-income borrowers across all of Washington State
• Availability of special programs for veterans, educators, and buyers with disabilities

This combination of affordability and flexibility is one reason many Washington homebuyers explore WSHFC options when planning their first purchase.

Common Questions About WSHFC Assistance

Is the assistance free money?
No. While no monthly payments are typically required, the assistance is a loan and must be repaid when the borrower sells, refinances, or pays off the home.

Can I use the assistance for closing costs too?
In some cases, yes. The assistance may be applied toward down payment and, if allowed, other eligible closing costs. Program rules vary.

What is the maximum income allowed?
Income limits vary by program and are based on household size and county. I work directly with buyers to verify eligibility based on the most current limits.

Do I have to be a first-time homebuyer?
Many WSHFC programs require first-time homebuyer status, but there are exceptions—especially for veterans or certain targeted areas. “First-time buyer” typically means you haven’t owned a home in the last three years.

How do I get started?
The first step is to complete the WSHFC homebuyer education course. From there, I help clients review their income, credit, and property details to find the most appropriate programs and first mortgage pairing.

How I Help Buyers Use WSHFC Programs

As a mortgage professional, I’m familiar with the guidelines and real-time updates that affect WSHFC availability and qualification. I assist buyers with:

• Confirming program eligibility
• Pairing the right first mortgage and assistance product
• Helping with the homebuyer education course requirements
• Guiding the application and documentation process

Because these programs involve multiple layers—state guidelines, lender overlays, and property criteria—it’s important to work with someone who understands how to bring it all together.

Start Exploring Your Options

If you’re looking to buy a home in Washington State and want to explore down payment assistance, the Washington State Housing Finance Commission offers a variety of potential solutions. With the right guidance and education, you may be closer to homeownership than you think.

I’m here to help you evaluate your eligibility and explore whether WSHFC downpayment assistance is a fit for your goals.