Covenant Homeownership Program

The Covenant Homeownership Program, offered through the Washington State Housing Finance Commission, creates a new funding source to help people who have been impacted by discrimination own homes.  The program provides down payment and closing cost assistance in the form of a loan, secondary to the primary mortgage.

Buyers must work with a WSHFC-trained lender and loan officer to get pre-approved for the mortgage and establish their eligibility to participate in the Covenant program.  

Some requirements include:

• Buyer must be a current resident of the State of Washington purchasing a primary residence.
   
• All buyers must be first time home buyers.  Buyers may be eligible if they have not owned a home within the past three years, they are a single parent who has only owned a home while married to a former spouse, they are a displaced homemaker and have only owned a home with a spouse, they have only owned a residence with no permanent foundation (like a manufactured home), or they have only owned a property determined to be uninhabitable.
   
• Qualifying income < 100% of Area Median Income.  That's $88,300 in Jefferson County, $93,900 in Clallam County, and $119,700 in Kitsap (as of 12/23/2024).
   
• One homebuyer or a parent, grandparent, or great grandparent must have lived in Washington before April, 1968.
   
• The person who lived in Washington before April, 1968 is/was Black, Hispanic, Native American, Native Hawaiian or other Pacific Islander, Korean, or Asian Indian.  If there are two (or more) buyers, only one buyer must meet the racial requirements.
   
• Down payment assistance loan is 0% interest with payments deferred.  Loan is repaid when the home is sold or transferred, the first mortgage is refinanced or repaid, the home is no longer a primary residence, or after 30 years (whichever comes first).
   
• Maximum assistance is 20% down (up to $150,000) plus closing costs.  Buyer's broker commission can be included in closing costs.
   
• Buyers must work with a lender to get pre-approved for a mortgage and confirm their eligibility to participate in the program before negotiating an offer.  Do not wait until you are under contract!
   
• Homeownership education is required.
   
• A home inspection is required for all properties.  The lender doesn't need to see the home inspection.  But the buyer must prove he paid for one.
   

For more information, visit the WSHFC web site or call or text Emily Caryl Ingram at 360-301-7575.  We'd love to see more buyers take advantage of this program!