Washington State First-Time Home Buyer Programs of 2021

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
First-time home buyers in Washington can take advantage of special loan programs and down payment assistance available just for residents. Got your eye on a cottage in King County? Or maybe a split-level in Spokane? The Washington State Housing Finance Commission, or WSHFC, knows the lay of the land and the lenders that can help.
National first-time home buyer programs
The WSHFC provides a wide variety of loan programs and down payment assistance; however, there are national loan programs to consider, as well.
Administered by government agencies — such as the VA or FHA — or federally authorized companies, such as Fannie Mae and Freddie Mac, these programs offer low-down-payment options, too.
Conventional mortgage
Best for:
Low down payments, limited mortgage insurance premiums
What you need to know:
A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac allow down payments as low as 3% for first-time buyers or lower-income home buyers. Unlike FHA loans, conventional loans allow borrowers to eventually cancel their mortgage insurance or avoid mortgage insurance altogether if they put at least 20% down.
Mortgage loans from our partners

on New American Funding
on New American Funding
VA loans
Best for:
Military, low down payments
What you need to know:
The U.S. Department of Veterans Affairs helps service members, veterans and surviving spouses buy homes. VA loans are especially generous, providing competitive interest rates, often requiring no down payment or mortgage insurance. Although there is no official minimum credit score, most VA-approved lenders require scores of at least 640.
FHA loans
Best for:
Low credit score, low down payments
What you need to know:
This is the go-to program for many first-time home buyers with lower credit scores. The Federal Housing Administration allows down payments as low as 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500 but requires a 10% down payment for a score that low. Mortgage insurance is required for the life of an FHA loan and cannot be canceled.
USDA loans
Best for:
Low down payments, rural home buyers
What you need to know:
A USDA home loan is a zero-down-payment mortgage for eligible rural and suburban home buyers. USDA loans are issued by the U.S. Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program. There are income limitations, which vary by region. Applicants with credit scores of 640 or higher receive streamlined processing. Those with scores below that must meet more stringent underwriting standards.
WSHFC highlights and eligibility requirements
These are first-time home buyer assistance programs tailored just for residents in the Evergreen State. If you live here, it's a good idea to see if you qualify for them.
» MORE: Tips for first-time home buyers
Highlights
30-year fixed-rate home loans.
Down payment assistance up to 4% of the mortgage amount.
Available for single-family houses, condos, townhouses and manufactured homes.
Eligibility
A home buyer education course is required, in person or online.
Annual household income typically cannot exceed $145,000.
Some down payment assistance programs are restricted to first-time home buyers.
If you haven’t owned and occupied your primary residence in the past three years, you qualify as a first-time home buyer.
Specific areas are exempt from the first-time home buyer requirement.
Mortgage loans from our partners

on New American Funding
on New American Funding