Overview
Washington is one of the costliest states for first-time buyers, with a statewide median home price around $570,000 — and far higher in the Seattle metro. The Washington State Housing Finance Commission (WSHFC) provides assistance built around pairing a competitive first mortgage with a separate down payment loan, and the state's lack of an income tax helps offset the high prices by leaving more of each paycheck for housing.
WSHFC's Home Advantage program is the most widely used path: a below-market 30-year fixed first mortgage combined with the Home Advantage Down Payment Assistance loan, worth up to 5% of the loan amount as a zero-interest second mortgage with no monthly payment, repaid when you sell or refinance. It's open to buyers statewide who complete a homebuyer education seminar and meet income limits — and because the assistance is a percentage of the loan, the help scales up with Washington's higher home prices.
State Programs
Home Advantage DPA
Deferred down payment assistanceHouse Key Opportunity Program
Below-market rate mortgage for lower incomes (pairs with DPA)Federal Programs Available in Washington
These nationwide programs can be combined with Washington state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Washington
For lower-income buyers, the House Key Opportunity program offers a below-market first mortgage that pairs with WSHFC down payment assistance — including a second of up to $15,000 at a low 1% simple interest rate — with income thresholds that run roughly $100,000 to $175,000 depending on location and household size. WSHFC also runs targeted assistance for veterans and for buyers with disabilities (HomeChoice), plus a needs-based option of up to $10,000 for households under 80% of area median income. On top of all this, the Seattle Office of Housing offers down payment assistance of up to $55,000 for buyers within city limits — a major help in the state's priciest market.
Washington has no state income tax, a meaningful advantage when you're trying to qualify for a mortgage on a high-priced home. The exception is a 7% capital gains tax that applies only to large long-term gains (above roughly $270,000) on assets like stocks — it generally doesn't touch wages or the sale of your home. Property taxes are moderate, averaging about 0.93% of value, with rates set locally and subject to Washington's voter-approved levy limits. As elsewhere, confirm the specific bill for any home, since rates differ across counties and cities.
Outside Seattle, more affordable markets like Spokane, Tacoma, and the Tri-Cities stretch WSHFC assistance further, and many of those areas have local programs too. Veterans and active-duty buyers near Joint Base Lewis-McChord, Naval Base Kitsap, or NAS Whidbey Island should compare a zero-down VA loan with the state programs. Because WSHFC requires a homebuyer education seminar before you apply, completing it early — and talking to a participating lender or a HUD-approved counselor — is the fastest way to line up the combination of programs you qualify for.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: June 15, 2026.