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Seattle, WA | King County | Updated April 2026

Down Payment Assistance
in Seattle, WA (2026)

The market is expensive. The programs match it. Seattle buyers can access $10,000 to $150,000 in assistance — far more than most buyers realize.

$150,000
Max assistance
$977,500
FHA limit (King Co.)
620
Min. credit score
3+
Active programs

Most Seattle buyers write off down payment assistance before they research it. The assumption is that programs offering $10,000 or $15,000 are irrelevant when homes cost $800,000 to $1.2 million. That assumption leaves real money on the table. Seattle has programs specifically scaled for a high-cost market, including a city loan program offering up to $76,000 and a statewide program that goes to $150,000 for eligible buyers. The ceiling is not $10,000. Here is what is actually available in 2026.

Quick Answer: Seattle DPA in 2026

  • WSHFC Home Advantage DPA: Up to $10,000, 0% deferred, statewide, 160% AMI limit. Most accessible entry point.
  • City of Seattle Office of Housing DAL: Up to $55,000-$76,000, 0% deferred, 80% AMI limit, Seattle city limits only.
  • Washington Covenant Homeownership Program: Up to $150,000, 0% interest, for buyers from communities subject to discriminatory housing covenants.
  • FHA limit: $977,500 in King County. FHA is viable across most of the Seattle market.
  • Stack option: WSHFC first mortgage + City DAL = up to $76,000 combined assistance.

The Seattle Market Reality

Seattle's median home price sits around $850,000, making it one of the most expensive markets in the country. A conventional 5% down payment on an $850,000 home requires $42,500. Add closing costs of $16,000 to $22,000 and a buyer needs $58,000 to $65,000 in cash before moving costs. That is the real barrier, not the down payment percentage.

What most buyers miss: the state's FHA loan limit in King County is $977,500. That is not a typo. FHA financing is available on homes up to just under $1 million in Seattle. With 3.5% down on an $800,000 purchase, the down payment drops to $28,000. Layer a city DPA loan on top and cash at closing becomes manageable. The programs were designed knowing this math.

$850K
Median home price
$977,500
FHA limit (King Co.)
$136,500
Area median income
620+
Min. credit score

How Seattle DPA Programs Work

Seattle has three types of assistance in the active market:

Deferred Second Mortgage

No monthly payment. Balance due when you sell, refinance, or reach end of term (often 30 years). The City of Seattle DAL and WSHFC DPA both work this way.

0% Interest Deferred Loan

Similar to deferred, but explicitly 0% interest so no balance growth over time. The Covenant Homeownership Program works this way: the amount you borrow is the amount you repay.

Rate Reduction

WSHFC's Veterans Program reduces the first mortgage interest rate by 0.5%. On a $700,000 loan, a 0.5% rate reduction saves about $3,500 per year in interest.

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Open Seattle DPA Programs (2026)

Program Amount Type Who Status
WSHFC Home Advantage DPA Up to $10,000 Deferred 0% 160% AMI, 620+ credit Open
City of Seattle Office of Housing DAL Up to $55K-$76K Deferred 0% 80% AMI, Seattle only Verify Open
Washington Covenant Homeownership Up to $150,000 0% interest loan Covenant-eligible buyers, 100% AMI Verify Open
WSHFC Veterans Program 0.5% rate reduction Rate discount Veterans, active duty, family Open
ARCH DPA (East King County) Up to $45,000 Deferred loan Bellevue, Kirkland, Redmond area Verify Open

Status badges: Open = currently accepting applications through approved lenders statewide. Verify Open = active program, confirm current funding availability with lender or agency before contract.

What Seattle Buyers Actually Use

The most common working stack in Seattle combines a WSHFC first mortgage with the City of Seattle DAL as the second lien. Here is what that looks like on a real purchase:

Example: $750,000 FHA Purchase in Seattle
Purchase price$750,000
FHA 3.5% down payment$26,250
Closing costs (est.)$15,000
Total cash needed$41,250
City of Seattle DAL (80% AMI)-$55,000
Net cash from buyer$0 (with assistance to spare)

Income must be at or below 80% AMI ($109,000 for family of four in King County). Property must be within Seattle city limits. Verify current program availability and exact amounts with an approved lender.

Program Details

WSHFC Home Advantage DPA

Open Statewide

Washington State's most accessible DPA program. Home Advantage is the first mortgage, and the DPA is a second lien at 0% interest, deferred until sale or refinance. No monthly payment on the assistance.

Amount: Up to $10,000
Interest rate: 0%, deferred
Income limit: 160% AMI (approx. $218,000 for family of 4 in King Co.)
Credit score: 620 minimum
First-time required: Yes (except in targeted areas)
Paired with: WSHFC Home Advantage first mortgage
Best for: Buyers above 80% AMI who need modest assistance. The 160% AMI limit captures most Seattle buyers at moderate income levels. At $10,000 it doesn't solve the whole problem but covers a meaningful portion of closing costs.

City of Seattle Office of Housing: Downpayment Assistance Loan (DAL)

Verify Open

Seattle's flagship local DPA program. Unlike state programs that top out at $10,000, the DAL scales to the market. Amounts are tiered by income: lower income buyers qualify for higher loan amounts. The loan carries 0% interest with no monthly payment.

Amount: Up to $55,000-$76,000 (income-tiered)
Interest rate: 0%, deferred
Income limit: 80% AMI (approx. $109,000 for family of 4)
Credit score: Must qualify for first mortgage
Geography: Seattle city limits only
Repayment: Due on sale, refinance, or end of 30-year term
Property types: Single-family, condos (must be within city limits)
Contact: Seattle Office of Housing: (206) 684-0244
Key limitation: The 80% AMI threshold ($109,000 household income) excludes many Seattle buyers who earn above this level. If you are above 80% AMI, start with WSHFC Home Advantage DPA and explore King County Housing Authority programs for additional layering.

Washington Covenant Homeownership Program

Verify Open

Washington created this program in direct response to the state's history of racially restrictive housing covenants that prevented Black, Asian, and other minority buyers from purchasing homes in most Seattle neighborhoods. Eligible buyers can receive up to $150,000 in assistance, which is one of the largest DPA amounts of any program in the country. The loan is 0% interest and repaid when the property is sold, refinanced, or transferred.

Amount: Up to $150,000
Interest rate: 0%, repaid on sale/refi/transfer
Income limit: 100% AMI (approx. $136,500 for family of 4)
Eligibility: Buyers from communities subject to discriminatory covenants
First-time required: No
Geography: Anywhere in Washington State
Who qualifies: Buyers who are members of specific demographic groups historically excluded from homeownership by covenant-based discrimination, including Black Americans, Asian Pacific Islanders, Hispanic/Latinx individuals, and members of Native Nations. Work with a WSHFC-approved lender to confirm eligibility documentation requirements.

ARCH Downpayment Assistance (East King County)

Verify Open

A Regional Coalition for Housing (ARCH) administers DPA for buyers purchasing in participating East King County cities: Bellevue, Kirkland, Redmond, Sammamish, and others. If your target area is the Eastside rather than Seattle proper, ARCH is the program to explore.

Amount: Up to $45,000
Type: Deferred second mortgage
Geography: Participating East King County cities only
Contact: archhousing.org

How Much Assistance Can Seattle Buyers Access?

The honest range depends entirely on income and eligibility for the larger city and state programs:

Buyer Profile Available Programs Max Assistance
Income above 80% AMI ($109K+) WSHFC Home Advantage DPA $10,000
Income at/below 80% AMI, buying in Seattle WSHFC Home Advantage + City DAL Up to $76,000
Covenant-eligible buyer, income below 100% AMI Covenant Homeownership Program Up to $150,000
Veteran buying anywhere in WA VA loan (no limit) + WSHFC Veterans rate $0 down + rate reduction

Income Limits for Seattle DPA Programs (2026)

King County AMI for 2025-2026 (Seattle-Bellevue-Kent HUD area):

Household Size 80% AMI (City DAL) 100% AMI (Covenant) 160% AMI (WSHFC HA)
1 person~$76,000~$95,600~$152,900
2 people~$87,000~$109,200~$174,700
3 people~$97,850~$122,900~$196,600
4 people~$109,000~$136,500~$218,400

AMI figures are approximate based on 2024-2025 HUD data. Confirm current limits with your lender or the relevant agency before application.

Veterans and Active Duty in Seattle

Veterans buying in Seattle should start with a VA loan before considering DPA programs. VA loans have no loan limit for eligible veterans with full entitlement, meaning you can finance an $850,000 Seattle home with $0 down. No PMI. No down payment. Just the funding fee, which is often financed into the loan.

WSHFC Veterans Program

For veterans using a WSHFC first mortgage (rather than VA), Washington State offers a 0.5% interest rate reduction. On a $700,000 loan, that saves approximately $3,500 in the first year of interest. Stack this with WSHFC Home Advantage DPA ($10,000) for maximum benefit.

Find Your Best Seattle DPA Option

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How to Apply for Seattle Down Payment Assistance

1
Identify your income tier

Calculate your household gross income and compare to 80% AMI and 100% AMI thresholds. This determines which programs you can access. If you're below 80% AMI, the City DAL is the priority program.

2
Find a WSHFC-approved lender

All WSHFC programs must go through an approved lender. The WSHFC lender list is at wshfc.org/buyers/findlender.aspx. Not every WSHFC lender also handles the City of Seattle DAL, so ask specifically about layering both programs.

3
Complete homebuyer education (if required)

WSHFC programs require a HUD-approved homebuyer education course before closing. Washington Homeownership Centers (homeownership-wa.org) offer courses online and in person. The City DAL may also require counseling. Complete this early — it cannot be done the week of closing.

4
Get pre-approved and apply for DPA simultaneously

Your lender will submit the DPA application as part of the loan package. For the City DAL, your lender coordinates directly with the Seattle Office of Housing. Build in extra time — city programs can take 2-4 weeks longer than standard loan processing.

Stacking DPA Programs in Seattle

Seattle allows stacking in specific combinations. Here is what works:

Confirmed Stack: WSHFC Home Advantage + City of Seattle DAL

WSHFC first mortgage layered with City of Seattle DAL as the second lien. Combined assistance: $10,000 to $76,000. This is the standard path for buyers at 80% AMI or below purchasing within Seattle city limits.

Covenant Program: Verify Stacking Rules

The Covenant Homeownership Program's stacking rules depend on the specific first mortgage used. Confirm with your lender whether it can layer with WSHFC Home Advantage or must be used standalone. Rules may vary by funding round.

VA Loan Stacking

VA loans cannot be combined with most DPA second liens for down payment purposes (since VA already provides 100% financing), but some DPA programs will cover closing costs alongside a VA first mortgage. Ask your lender specifically about closing cost grants with VA.

Common Mistakes Seattle Buyers Make

Assuming DPA doesn't apply at Seattle price points

The City DAL and Covenant programs were specifically created for high-cost markets. A $76,000 DPA loan against an $800,000 purchase is meaningful — it covers roughly all of closing costs or the entire 3.5% FHA down payment on a $700,000 home.

Working with a lender who doesn't know City of Seattle programs

Not all WSHFC-approved lenders work with the City of Seattle Office of Housing. Ask before committing to a lender. If they don't know about the City DAL, find someone who does. You are leaving $55,000 to $76,000 on the table otherwise.

Skipping homebuyer education until the last minute

WSHFC requires HUD-approved education before closing. City programs often require counseling as well. Starting this process after you have an accepted offer can delay closing. Complete it during pre-approval.

Buying just outside Seattle city limits and losing the City DAL

The Seattle Office of Housing program requires the property to be within Seattle city limits. If you are purchasing in Shoreline, Burien, or unincorporated King County, the City DAL does not apply. Research county-level options like King County Housing Authority programs instead.

Real Seattle Buyer Scenarios

Scenario 1: Teacher, $85,000 income, buying in Seattle

Below 80% AMI for a single person. Qualifies for City of Seattle DAL (up to $55,000) plus WSHFC Home Advantage DPA ($10,000). Total potential assistance: $65,000. On a $650,000 condo with 3.5% FHA down ($22,750), $65,000 covers the down payment and most closing costs. Monthly mortgage on $627,250 at current rates: approximately $3,900. Combined with education homebuyer counseling requirement, this buyer should plan for 8-10 weeks from pre-approval to close.

Scenario 2: Tech worker, $165,000 income, buying in Seattle

Above 80% AMI — does not qualify for City DAL. Below 160% AMI — qualifies for WSHFC Home Advantage DPA ($10,000). This buyer's best move is to evaluate whether $10,000 in assistance is worth the WSHFC program constraints vs. using a conventional loan with more flexibility. At this income level, the bigger lever is choosing the right first mortgage structure (conventional at 10% down, eliminating PMI sooner) rather than maximizing DPA.

Scenario 3: Veteran, $120,000 income, buying in Kirkland

VA loan: no down payment on a $900,000 home. WSHFC Veterans Program adds a 0.5% rate reduction. Because Kirkland is in East King County, this buyer should also explore ARCH DPA (up to $45,000) for closing cost assistance alongside the VA first mortgage. Kirkland is not within Seattle city limits, so City DAL does not apply — ARCH is the relevant local program. VA funding fee may apply depending on prior use and entitlement status.

Seattle Down Payment Assistance FAQ

How much down payment assistance is available in Seattle? +
$10,000 to $150,000 depending on the program. WSHFC Home Advantage DPA provides $10,000. City of Seattle DAL goes up to $55,000-$76,000 for buyers at 80% AMI. Washington Covenant Homeownership Program reaches $150,000 for eligible buyers.
What is the FHA loan limit in King County for 2026? +
$977,500 for a single-family home. This is one of the highest FHA limits in the country and makes FHA a viable option across most of the Seattle market, not just the lowest-priced properties.
Do I need to be a first-time buyer? +
Most Seattle DPA programs require first-time buyer status (no ownership in the last 3 years). The Covenant Homeownership Program does not require first-time buyer status. Some WSHFC programs waive the requirement in federally designated targeted areas. Ask your lender to check targeted area eligibility for your specific property address.
What credit score do I need? +
620 for WSHFC programs. The City of Seattle DAL does not specify a minimum but requires you to qualify for a first mortgage — in practice 620-640. Higher scores improve your rate but the entry point is 620.
Can I stack the City DAL with WSHFC? +
Yes. A WSHFC Home Advantage first mortgage can be paired with the City of Seattle DAL as the second lien. Combined, this brings $10,000 plus up to $76,000. You need a lender approved for both programs to structure this correctly.
Can I use DPA to buy a condo in Seattle? +
Yes, condos are eligible under WSHFC and City DAL programs, but the condo project must be FHA-approved or meet conventional financing requirements. Verify condo approval status with your lender before making an offer.
Does the City of Seattle DAL require repayment? +
Yes. The City DAL is a loan, not a grant. It is 0% interest with no monthly payments, but the balance is due when you sell, refinance, or at the end of the 30-year term. You repay exactly what you borrowed — no interest accumulates.
What happens if I buy just outside Seattle city limits? +
The City of Seattle DAL requires the property to be within Seattle city limits. Buyers in Shoreline, Burien, SeaTac, or unincorporated King County should look at King County Housing Authority programs or ARCH (for East King County). WSHFC programs work statewide regardless of city boundaries.
Who qualifies for the Covenant Homeownership Program? +
Buyers from communities historically subject to racially discriminatory housing covenants in Washington State. This includes Black Americans, Asian Pacific Islanders, Hispanic/Latinx individuals, members of Native Nations, and others. Eligibility is determined by the program administrator. Income must be at or below 100% AMI. Contact a WSHFC-approved lender to confirm documentation requirements.
How long does the process take with DPA in Seattle? +
Standard WSHFC loans add minimal time beyond a conventional loan. The City of Seattle DAL adds 2-4 weeks for the city's review and approval process. Plan for 45-60 days to close when using city programs. Complete homebuyer education during the pre-approval phase, not after going under contract, to avoid delays.

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Disclaimer: Program availability, amounts, and eligibility requirements change frequently. Income limits shown are approximate and based on 2024-2025 HUD data for King County. Verify all program details, current funding status, and exact amounts directly with the Seattle Office of Housing, WSHFC, or an approved lender before signing a purchase agreement. Down Payment Scout is an informational resource and does not guarantee program availability or approval.