Washington’s Covenant Homeownership Program: What It Is + Who Qualifies (2024–2026)

If you’ve been hoping to buy a home in Washington but the down payment and closing costs feel like a huge barrier — there’s a program you should know about.

Washington State launched the Covenant Homeownership Program in 2024, and it was created to help first-time homebuyers who have been historically impacted by housing discrimination finally get a real shot at homeownership.

This program can provide major financial help — including down payment assistance and closing costs — and it’s already changing what’s possible for many buyers across our state.

Let’s break it down in simple terms.

What is the Covenant Homeownership Program?

The Covenant Homeownership Program is a Washington State program that offers eligible buyers:

Down payment assistance
Closing cost assistance
Through a 0% interest loan

This loan is different than most assistance programs because it is:

✅ 0% interest

✅ Paid back only when you sell or refinance

✅ Potentially forgiven after 5 years for certain households (more on that below)

What are the program benefits?

Depending on eligibility, buyers may receive:

💰 Up to 20% Down Payment Assistance

The program can provide up to:

20% of the home’s purchase price
OR $150,000
Whichever is lower

🧾 Closing Costs Fully Covered

Many buyers are surprised by how much closing costs can be — this program can cover those costs too, which is huge.

🟢 0% Interest Loan

This is not a grant — it’s a zero-interest loan. That means:

No interest builds up over time
No monthly payments are required while you live in the home (in most cases)
Repayment is typically due only when you:
- Sell
- Refinance
- Or reach the end of the loan term

⭐ Loan Forgiveness After 5 Years (For Some Buyers)

For households earning 80% or less of the Area Median Income (AMI), there may be loan forgiveness after 5 years, as long as the program requirements are met.

Who qualifies for the Covenant Program?

This is where the Covenant program is unique.

To qualify, a buyer generally must meet all of the following:

✅ 1. Be a First-Time Homebuyer

The program is designed for first-time homebuyers (with some definitions that may include people who haven’t owned a home in several years).

✅ 2. Meet Income Limits

Your household income must be:

At or below 120% of the Area Median Income (AMI)

Income limits vary depending on county and household size, so it’s important to check your specific area.

✅ 3. Washington Residency Requirement (Family History)

You must have:

Lived in Washington before April 1968
OR
Have a parent, grandparent, or great-grandparent who lived in Washington before April 1968

This is a key piece of the program and connects directly to the historical purpose behind it.

✅ 4. Identify as an Eligible Group

The program includes eligibility for people who identify as:

Black
Hispanic
Native American
Alaska Native
Native Hawaiian
Pacific Islander
Korean
Asian Indian

Why was this program created?

The Covenant Homeownership Program was designed as a response to the long-term impact of discriminatory housing practices in Washington’s history.

For many families, homeownership wasn’t just difficult — it was intentionally blocked.

This program exists to help correct that, by making it possible for qualified first-time buyers to purchase a home with meaningful support.

How do you apply?

This program is accessed through participating lenders.

That means the first step is usually:

Talk with a lender who offers the program
Confirm eligibility (income, first-time status, family residency, etc.)
Get pre-approved
Then shop for a home with your Realtor

Want to know if you qualify?

If you’re thinking about buying a home in Washington, this program could be a game-changer — but it’s important to get clear answers based on your specific situation.

If you want, I’m happy to connect you with a lender who can:

Check your eligibility
Explain the details
Walk you through next steps

And if you’re ready to start house hunting, I’d love to help you build a plan and find the right home.

Ready to take the next step?

Send me a message and let’s talk about what’s possible.