Washington Home Advantage

What is Washington Home Advantage?

Washington Home Advantage is a deferred second loan for homebuyers in Washington.

• The Washington Home Advantage Down Payment Assistance program, offered through the Washington State Housing Finance Commission (WSHFC), provides eligible first-time homebuyers with down payment and closing cost assistance of up to 4% of the first mortgage loan amount. The assistance is structured as a second mortgage with low interest. Borrowers must use a WSHFC Home Advantage first mortgage. Income and purchase price limits apply. The program is available statewide in Washington and is compatible with FHA, VA, USDA, and Conventional loans.
• Up to 4% of first mortgage amount in down payment and closing cost assistance.
• Low 1% fixed interest rate on the second mortgage.
• Available to all homebuyers, not just first-time buyers.
• Statewide availability throughout Washington State.
• Compatible with FHA, VA, USDA, and Conventional loans.
• No prepayment penalty.
• Paired with competitive WSHFC Home Advantage first mortgage rates.
• Funding comes from State.

How much assistance does it provide?

Washington Home Advantage provides assistance worth 4% of the purchase price, as set by the program.

• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Washington Home Advantage is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Sale, Refinance, No Longer Primary, and Maturity Date.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Washington Home Advantage is open to buyers who will live in the home as their primary residence.

What are the income limits?

Washington Home Advantage limits household income to 100% of the area median income, which varies by county and household size.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Washington Home Advantage caps the purchase price as follows: Purchase price limits vary by county; see WSHFC website for current limits.

• Eligible property types include Single Family, Condo, Townhouse, Manufactured Home, and New Construction.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

Washington Home Advantage serves buyers purchasing anywhere in Washington.

How do you apply?

Applications for Washington Home Advantage go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through WSHFC-approved homebuyer education seminar providers. See wshfc.org for a list of approved providers and online/in-person seminar options..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.