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A Complete Guide to Washington State Down Payment Assistance Programs for Aberdeen, Hoquiam, and Westport Buyers (2025)
đź“– 8 minute read
This guide explains how first-time and returning homebuyers in Grays Harbor County can access these state programs to reduce or eliminate down payment requirements in 2025.
The Bottom Line
That's how much down payment assistance you could receive on Grays Harbor's median home price of $349,500—at 0% interest, with payments deferred for 30 years.
Why Most Grays Harbor Buyers Don't Know About These Programs
The Washington State Housing Finance Commission (WSHFC) manages several down payment assistance (DPA) programs, but they aren't widely advertised in our area. These aren't grants or gimmicks—they're state-backed loans designed to make homeownership more accessible for working families in Grays Harbor County and throughout Washington.
The catch? You need to work with a lender who participates in these programs. Not all mortgage lenders in the Aberdeen-Hoquiam area are familiar with or offer these state programs, which is why many local buyers never hear about them.
Washington State Down Payment Assistance Programs: Three Options for Grays Harbor Buyers
1. Home Advantage DPA
Best for: First-time and repeat buyers with moderate income
How it works:
- Provides up to 4% of your loan amount for down payment and closing costs
- 0% interest rate—you pay back exactly what you borrowed
- Payments are deferred for the entire 30-year term of your first mortgage
- Can be combined with FHA, conventional, VA, or USDA loans
- The loan is forgiven when you sell, refinance, or pay off your first mortgage
Income limits: Vary by county. In Grays Harbor County, limits are generally around $116,900 for a household of 1-2 people, and higher for larger households. These limits are more favorable than in King or Pierce counties, making it easier for local buyers to qualify.
Real Example: On a $350,000 home with an FHA loan:
- FHA requires 3.5% down = $12,250
- Home Advantage DPA provides 4% = $14,000
- You cover closing costs with the remaining DPA funds
- Total cash needed out of pocket: Minimal to none
2. House Key Opportunity DPA
Best for: Low-to-moderate income first-time buyers
How it works:
- 0% interest down payment assistance loan
- Must be combined with the House Key Opportunity First Mortgage
- Designed specifically for buyers who need maximum assistance
- More restrictive income limits than Home Advantage
This program is typically for buyers earning 80% or less of the area median income.
3. Covenant Homeownership Program
Best for: Households impacted by Washington's history of housing discrimination
How it works:
- Down payment and closing cost assistance as a 0% interest loan
- Potential for complete loan forgiveness after 5 years of homeownership
- Designed to address historical inequities in homeownership
- Eligibility based on specific criteria related to past discriminatory practices
This program has specific eligibility requirements. Contact a participating lender to determine if you qualify.
Comparing Your Options
| Program | Max Assistance | Interest Rate | Best For |
|---|---|---|---|
| Home Advantage DPA | Up to 4% of loan | 0% | Most buyers |
| House Key Opportunity | Varies | 0% | Lower income buyers |
| Covenant Program | Varies | 0% (potential forgiveness) | Specific eligibility |
What You Need to Qualify
While requirements vary by program, here are the general qualifications:
Credit Score: Most programs require a minimum credit score of 620-640, though some lenders may have different requirements when combining with FHA loans (which can go as low as 580).
Income Limits: These vary by county and household size. Grays Harbor County income limits are generally more favorable than larger counties like King or Snohomish, making it easier for local buyers to qualify for assistance.
First-Time Buyer: Some programs are for first-time buyers only (defined as not owning a home in the past 3 years), while others allow repeat buyers.
Homebuyer Education: You'll need to complete a homebuyer education course, which can often be done online in a few hours.
Primary Residence: The home must be your primary residence—no investment properties or vacation homes.
The Real Math: What Does This Mean for You?
Real Scenario: First-Time Homebuyer in Aberdeen
Home Price: $289,000 (similar to our current Aberdeen listings)
| Traditional FHA Approach: | Â |
| Down payment (3.5%) | $10,115 |
| Closing costs (est. 2-3%) | $5,780-$8,670 |
| Total cash needed | $15,895-$18,785 |
With Home Advantage DPA:
| DPA assistance (4%) | $11,560 |
| Covers down payment | $10,115 |
| Remaining for closing costs | $1,445 |
| Additional cash needed | $4,335-$7,225 |
This is a $11,560 swing in upfront cash required—and you're paying 0% interest on the DPA loan, with payments deferred for 30 years.
Common Questions
Do I have to pay back the DPA loan?
Yes, but here's the key: with Home Advantage DPA, the loan is at 0% interest and payments are deferred for the entire 30-year term. When you sell your home, refinance, or pay off your first mortgage, the DPA loan becomes due. You pay back exactly what you borrowed—no interest.
What if I sell my home before 30 years?
The DPA loan becomes due when you sell. It's paid from your home's equity at closing, just like your first mortgage. Since homes typically appreciate over time, most sellers have sufficient equity to cover both loans.
Can I use this with a VA loan?
Yes! The Home Advantage DPA can be combined with VA loans. This is particularly useful because while VA loans don't require a down payment, they do have closing costs that the DPA can help cover.
How long does the process take?
Once you're working with a participating lender, the DPA doesn't add significant time to your mortgage process. You'll need to complete a homebuyer education course (typically 6-8 hours online) before closing.
What if my income is too high for these Washington State programs?
If you exceed the income limits for state DPA programs, ask your lender about other options. Some lenders offer their own down payment assistance programs, and there may be additional local programs available in Grays Harbor County through community organizations or credit unions.
How to Get Started with Down Payment Assistance in Grays Harbor County
If you're interested in exploring Washington State down payment assistance programs, here's what to do:
- Connect with a participating lender. Not all mortgage lenders in the Aberdeen-Hoquiam area participate in WSHFC programs. We work with local lenders who specialize in these state programs and can help you navigate the application process.
- Complete the required homebuyer education course. This is mandatory for most programs and can be completed online in 6-8 hours. The course covers the buying process, home maintenance, and financial management.
- Review your budget honestly. While down payment assistance programs dramatically reduce upfront costs, ensure you can comfortably afford the monthly mortgage payment on a Grays Harbor County home.
- Start looking at homes in your price range. Once you have DPA pre-approval, you can shop with confidence in Aberdeen, Hoquiam, Westport, Ocean Shores, and surrounding areas.
Ready to Explore Down Payment Assistance Options?
We're Grays Harbor County real estate experts who work with local lenders specializing in Washington State down payment assistance programs. Whether you're looking in Aberdeen, Hoquiam, Westport, or anywhere in the county, we can connect you with the right resources and guide you through the homebuying process.
Schedule a Free ConsultationOr call us: 1-360-545-3842
Important Disclosure: This guide provides general information about Washington State Housing Finance Commission programs. Eligibility requirements, income limits, and program details can change. Always verify current program details with a participating lender and consult with a qualified mortgage professional about your specific situation. Information current as of December 2025.
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Down Payment Assistance in Grays Harbor County: How to Buy with Little to No Money Down
A Complete Guide to Washington State Down Payment Assistance Programs for Aberdeen, Hoquiam, and Westport Buyers (2025)
This guide explains how first-time and returning homebuyers in Grays Harbor County can access these state programs to reduce or eliminate down payment requirements in 2025.
The Bottom Line
That's how much down payment assistance you could receive on Grays Harbor's median home price of $349,500—at 0% interest, with payments deferred for 30 years.
Why Most Grays Harbor Buyers Don't Know About These Programs
The Washington State Housing Finance Commission (WSHFC) manages several down payment assistance (DPA) programs, but they aren't widely advertised in our area. These aren't grants or gimmicks—they're state-backed loans designed to make homeownership more accessible for working families in Grays Harbor County and throughout Washington.
The catch? You need to work with a lender who participates in these programs. Not all mortgage lenders in the Aberdeen-Hoquiam area are familiar with or offer these state programs, which is why many local buyers never hear about them.
Washington State Down Payment Assistance Programs: Three Options for Grays Harbor Buyers
1. Home Advantage DPA
Best for: First-time and repeat buyers with moderate income
How it works:
- Provides up to 4% of your loan amount for down payment and closing costs
- 0% interest rate—you pay back exactly what you borrowed
- Payments are deferred for the entire 30-year term of your first mortgage
- Can be combined with FHA, conventional, VA, or USDA loans
- The loan is forgiven when you sell, refinance, or pay off your first mortgage
Income limits: Vary by county. In Grays Harbor County, limits are generally around $116,900 for a household of 1-2 people, and higher for larger households. These limits are more favorable than in King or Pierce counties, making it easier for local buyers to qualify.
Real Example: On a $350,000 home with an FHA loan:
- FHA requires 3.5% down = $12,250
- Home Advantage DPA provides 4% = $14,000
- You cover closing costs with the remaining DPA funds
- Total cash needed out of pocket: Minimal to none
2. House Key Opportunity DPA
Best for: Low-to-moderate income first-time buyers
How it works:
- 0% interest down payment assistance loan
- Must be combined with the House Key Opportunity First Mortgage
- Designed specifically for buyers who need maximum assistance
- More restrictive income limits than Home Advantage
This program is typically for buyers earning 80% or less of the area median income.
3. Covenant Homeownership Program
Best for: Households impacted by Washington's history of housing discrimination
How it works:
- Down payment and closing cost assistance as a 0% interest loan
- Potential for complete loan forgiveness after 5 years of homeownership
- Designed to address historical inequities in homeownership
- Eligibility based on specific criteria related to past discriminatory practices
This program has specific eligibility requirements. Contact a participating lender to determine if you qualify.
Comparing Your Options
| Program | Max Assistance | Interest Rate | Best For |
|---|---|---|---|
| Home Advantage DPA | Up to 4% of loan | 0% | Most buyers |
| House Key Opportunity | Varies | 0% | Lower income buyers |
| Covenant Program | Varies | 0% (potential forgiveness) | Specific eligibility |
What You Need to Qualify
While requirements vary by program, here are the general qualifications:
Credit Score: Most programs require a minimum credit score of 620-640, though some lenders may have different requirements when combining with FHA loans (which can go as low as 580).
Income Limits: These vary by county and household size. Grays Harbor County income limits are generally more favorable than larger counties like King or Snohomish, making it easier for local buyers to qualify for assistance.
First-Time Buyer: Some programs are for first-time buyers only (defined as not owning a home in the past 3 years), while others allow repeat buyers.
Homebuyer Education: You'll need to complete a homebuyer education course, which can often be done online in a few hours.
Primary Residence: The home must be your primary residence—no investment properties or vacation homes.
The Real Math: What Does This Mean for You?
Real Scenario: First-Time Homebuyer in Aberdeen
Home Price: $289,000 (similar to our current Aberdeen listings)
| Traditional FHA Approach: | Â |
| Down payment (3.5%) | $10,115 |
| Closing costs (est. 2-3%) | $5,780-$8,670 |
| Total cash needed | $15,895-$18,785 |
With Home Advantage DPA:
| DPA assistance (4%) | $11,560 |
| Covers down payment | $10,115 |
| Remaining for closing costs | $1,445 |
| Additional cash needed | $4,335-$7,225 |
This is a $11,560 swing in upfront cash required—and you're paying 0% interest on the DPA loan, with payments deferred for 30 years.
Common Questions
Do I have to pay back the DPA loan?
Yes, but here's the key: with Home Advantage DPA, the loan is at 0% interest and payments are deferred for the entire 30-year term. When you sell your home, refinance, or pay off your first mortgage, the DPA loan becomes due. You pay back exactly what you borrowed—no interest.
What if I sell my home before 30 years?
The DPA loan becomes due when you sell. It's paid from your home's equity at closing, just like your first mortgage. Since homes typically appreciate over time, most sellers have sufficient equity to cover both loans.
Can I use this with a VA loan?
Yes! The Home Advantage DPA can be combined with VA loans. This is particularly useful because while VA loans don't require a down payment, they do have closing costs that the DPA can help cover.
How long does the process take?
Once you're working with a participating lender, the DPA doesn't add significant time to your mortgage process. You'll need to complete a homebuyer education course (typically 6-8 hours online) before closing.
What if my income is too high for these Washington State programs?
If you exceed the income limits for state DPA programs, ask your lender about other options. Some lenders offer their own down payment assistance programs, and there may be additional local programs available in Grays Harbor County through community organizations or credit unions.
How to Get Started with Down Payment Assistance in Grays Harbor County
If you're interested in exploring Washington State down payment assistance programs, here's what to do:
- Connect with a participating lender. Not all mortgage lenders in the Aberdeen-Hoquiam area participate in WSHFC programs. We work with local lenders who specialize in these state programs and can help you navigate the application process.
- Complete the required homebuyer education course. This is mandatory for most programs and can be completed online in 6-8 hours. The course covers the buying process, home maintenance, and financial management.
- Review your budget honestly. While down payment assistance programs dramatically reduce upfront costs, ensure you can comfortably afford the monthly mortgage payment on a Grays Harbor County home.
- Start looking at homes in your price range. Once you have DPA pre-approval, you can shop with confidence in Aberdeen, Hoquiam, Westport, Ocean Shores, and surrounding areas.
Ready to Explore Down Payment Assistance Options?
We're Grays Harbor County real estate experts who work with local lenders specializing in Washington State down payment assistance programs. Whether you're looking in Aberdeen, Hoquiam, Westport, or anywhere in the county, we can connect you with the right resources and guide you through the homebuying process.
Schedule a Free ConsultationOr call us: 1-360-545-3842
Important Disclosure: This guide provides general information about Washington State Housing Finance Commission programs. Eligibility requirements, income limits, and program details can change. Always verify current program details with a participating lender and consult with a qualified mortgage professional about your specific situation. Information current as of December 2025.
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