First-time home buyer programs in Washington: WSHFC, Seattle

Who counts as a “first-time buyer” in Washington?

WSHFC defines a first-time homebuyer as someone who has not owned and occupied a primary residence at any time in the past three years. For its House Key Opportunity loan, you do not have to be a first-time buyer if you buy in a Target Area (economically distressed census tracts, mapped on WSHFC’s site) or are an honorably discharged veteran. Its larger program, Home Advantage, has no first-time requirement at all.

Every WSHFC loan requires a free homebuyer education class (about five hours); each borrower who signs the note and deed of trust needs a certificate, valid for two years.

WSHFC: two first mortgages, several down payment loans

WSHFC does not lend directly. Participating lenders originate the loan; the Commission supplies the rate and the second loan. Its two first-mortgage programs, as described on its pages in October 2026:

• Home Advantage: one statewide income limit of $215,000, whatever the household size or home price, no first-time requirement. WSHFC’s Home Advantage program page still shows $180,000, but its FAQ, its homebuyer page and its first-mortgage page all give $215,000; confirm the figure with your lender.
• House Key Opportunity: lower rates for first-time buyers with lower incomes. It uses tax-exempt bond money, so funds are first come, first served.

For House Key Opportunity, WSHFC’s limits table (effective September 15, 2025) shows, for King County:

The down payment loans are all payment-deferred second loans, with no monthly payment. The balance is due when you sell, refinance, transfer the property, stop living in it, or pay off the first mortgage (at 30 years at the latest). The main options:

• Home Advantage DPA: 3%, 4% or 5% of the first mortgage at 0%; income up to $215,000; first-time status not required.
• Home Advantage Needs-Based DPA: up to $10,000 at 1% simple interest, with a needs assessment. WSHFC’s page gives two King County income limits ($164,400 and $157,100), so ask your lender which applies.
• House Key Opportunity DPA: up to $15,000 at 1% simple interest; first-time buyers or Target Area homes. King and Snohomish income limits (effective June 8, 2026): $93,350 for 1–2 people and $116,650 for 3 or more.
• HomeChoice: up to $15,000 for a buyer with a disability, or a household member with one.
• Veterans: up to $10,000 at 3% interest.
• Covenant Homeownership Program: up to 20% of the home’s cost, up to $150,000, plus closing costs, for people with family roots in Washington before 1968 who belong to groups affected by housing discrimination. WSHFC says demand now outpaces monthly funding, so lenders must submit a pre-reservation first.
• ARCH (East King County): up to $30,000 at 4% simple interest in member cities such as Bellevue, Kirkland, Redmond and Sammamish; not Seattle. Price limits: $646,000 for an existing home and $660,000 for new construction.

WSHFC’s FAQ answers “Do you have MCCs available for home purchase?” with “No.” The federal recapture tax can still apply to House Key loans if you sell within nine years, you have a gain and your income is above federal limits. WSHFC puts the maximum at the lesser of 50% of the gain or 6.25% of the original loan; Home Advantage loans carry no recapture tax.

Example. On a $600,000 first mortgage, Home Advantage DPA of 3% to 5% is $18,000 to $30,000 at 0%, with nothing to repay until you sell, refinance or move out. That can cover the down payment on an FHA loan and part of the closing costs.

Seattle: the Office of Housing

The City of Seattle’s Office of Housing gives down payment help through nonprofit homeownership partners, using Seattle Housing Levy money. Its page states:

• the household must earn 80% of area median income or less by household size, and be a first-time buyer (no home owned in the last three years, with an exception for displaced homemakers);
• the maximum is $76,000 per household for open-market purchases;
• the home must be inside Seattle city limits, used as a principal residence; houses, condos, co-ops, land trusts and leased land qualify;
• you need a city-approved homebuyer class and one-on-one housing counseling from one of two approved providers.

The Office’s homeownership income limits, effective May 15, 2026, are $92,080 for one person, $105,280 for two, $118,400 for three and $131,520 for four. The city’s page also says the Seattle Downpayment Assistance Program is no longer available through WSHFC.

The partners differ: the page cites purchase-assistance loans of up to $70,000 at one and up to $110,000 by layering sources at another, and a community land trust whose homes typically cost $50,000 to $100,000 below market value, with a resale limit. The city’s Rainier Valley initiative aims to create at least 100 permanently affordable for-sale homes on former Sound Transit sites. See our Seattle page.

Payotte found no county-run first-time buyer program on King County’s own pages; ARCH covers East King County only.

Comparison of the main programs

At Seattle prices, the caps matter: the city’s median owner-occupied value is $950,800 (see home prices), above the $725,000 House Key and $646,000 ARCH existing-home limits. The median is an owner estimate, not a sale price, but check the price limit before you shop. Our home-buying steps guide shows where the lender fits. For free counseling, WSHFC points to the state’s Homeownership Information Hotline, 1-877-894-4663.