How does the Covenant Homeownership Program help homebuyers?
The Covenant Homeownership Program provides downpayment and closing cost assistance for first-time homebuyers in the form of a loan, secondary to the primary mortgage loan. The loan has a 0% interest rate. It is paid back on the sale or refinancing of the home.
Who qualifies as a first-time homebuyer?
The Covenant Homeownership Act defines “first-time homebuyer” broadly. You may be eligible if:
You have not owned a home within the past three years
You are a single parent who has only owned a home while married to a former spouse.
You are a displaced homemaker and have only owned a home with a spouse.
You have only owned a residence that had no permanent foundation (such as a manufactured home)
You only owned a property that was determined to be uninhabitable.
How do you see if you qualify?
Contact us using the easy form below, and we'll help you get started, walking you step by step through the process.
Who is eligible for this program?
Based on the mandates of the Covenant Homeownership Act and the recommendations of the Covenant Homeownership Program Study, the following eligibility criteria apply:
Household income at or below 100% of the Area Median Income (AMI).
First-time homebuyer.
The homebuyer or a parent/grandparent/great-grandparent lived in Washington state before April 1968.
The person who lived in Washington before April 1968 is Black, Hispanic, Native American, Alaska Native, Native Hawaiian or other Pacific Islander*, Korean or Asian Indian.
*Following the U.S. Census definitions, “Pacific Islander” includes individuals with origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands, including, for example, Samoan, Chamorro, Tongan, Fijian, and Marshallese.
What is required of homebuyers using the Covenant program?
As with all Commission home loans, homebuyers must meet lender underwriting requirements, i.e. qualify for a home loan from a lending institution. You must also take a free homebuyer education class, either virtually or in person. Dozens of classes are taught each week by lenders across the state.
Further, Covenant homebuyers must provide documentation of the residency and race/ethnicity of the person (whether the homebuyer themselves or their parent/grandparent/great-grandparent) who lived in Washington state before April 1968. The Housing counselors, Commission staff and other program partners are committed to helping homebuyers gather this documentation.
