The Covenant Home Loan
The Covenant Home Loan Program is an exclusive benefit to current Washington State residents who are fist-time homebuyers with a PNW family heritage dating back prior to 1968. Find everything you need about qualifying for this program right here!
What Is the Covenant Home Loan Program?
The Washington State Housing Finance Commission (WSHFC) Covenant Home Loan Program was designed to help qualified first-time home buyers overcome the down payment barrier created by historical housing discrimination leading back to your family lineage prior to 1968.
Eligible buyers may receive:
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Up to $150,000 in down payment assistance
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0% interest, deferred repayment
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No monthly payment on the down payment assistance
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Compatible with other fixed-rate first mortgage programs
For many buyers in Snohomish County, this program can mean the difference between continuing to rent and owning a home (all other Washington State counties are eligible too, there is a total housing income guideline that must be honored and that is county specific (see below for more info).
Who This Program Is For
You may be a strong candidate if you:
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Are a first-time home buyer
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Plan to buy a primary residence in Washington State
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Meet WSHFC income and program guidelines
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Can prove your ethnicity falls under a discriminated class be lawsuit/study
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Total household income falls under state max threshold (changes, but currently $188,500/yr)
This program is not automatic. Incorrect income calculations, heritage documentation, loan structuring errors, or poor pre-approvals can delay or derail your purchase (which, sadly we see a lot in the community, that is why it's important to work w/ a local professional like our Team that understands this program).
How Do I Know If I am Eligible For Covenant?
In 2023, the Washington State Legislature passed the Covenant Homeownership Act that created a funding source to help current homebuyers of certain targeted ethnic groups whose family was discriminated against prior to 1968. The ethnic groups listed in the Covenant Homeownership Act are: Black, Hispanic, Native American, Pacific Islander, Alaskan Native, Korean, and Asian Indian.
Features of eligibility include:
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Up to $150,000 in down payment assistance
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The $150,000 in down payment assistance can be forgiven after 5-years if your income falls under the 80% of AMI (see Dan for more info)
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Must take a FREE home buyer education class to get certificate (see below, I offer one monthly)
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The down payment assistance is compatible with most all 30-year fixed rate loan programs
There are more details to know, but these are the main qualifying features. I've provided more information below, but I highly encourage you to enroll in one of my monthly home buyer classes to learn more and design the best home buying strategy that works for you!
How To Provide Proof of Family Heritage
If you, a parent, or grandparent lived in Washington State prior to 1968, then you may be eligible for up to $150,000 in down payment assistance per the Washington State Covenant Act. These are the eligible forms of documentation to prove family heritage residing in Washington State:
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Easiest documentation: Birth certificate, death certificate, marriage certificate, military records, tribal membership card, census data, obituary, church records, media clippings, and employer records.
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Vital records at the Washington State Dept of Health
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Count records
Often time, we help assist you in gathering the proper documentation. We've found that engaging family support in documenting a family member's residence in Washington State prior to 1968 is often the most helpful resource!
Income Guidelines And Forgiveness of the $150,00 Covenant Down Payment Assistance?
In 2026, the current maximum household income guidelines to simply qualify for this loan program is 120% of the county AMI (area median income). You can always look it up here (click here) but for now it looks like this:
Max Household Income Per County Changes:
King County
$188,500
Snohomish County
$188,500
Pierce County
$144,950
Skagit County
$131,300
Kitsap County
$149,150
Clark County
$148,900
San Juan County
$132,950
Whatcom County
$130,100
Thurston County
$140,050
Chelan County
$115,800
Now... To Be Eligible For Forgiveness of the $150,000 Assistance, income must be under 80% county AMI. That looks like this per county (on or after May 2025):
King County
$121,150
Snohomish County
$121,150
Pierce County
$96,650
Skagit County
$87,500
Kitsap County
$99,450
Clark County
$99,300
San Juan County
$88,650
Whatcom County
$86,700
Thurston County
$93,350
Chelan County
$77,200
For more county income limits and along with keeping current on updated max household income limits for the Washington State Covenant Program, you can visit the WSHFC site HERE.
What To Do Next...
I believe it's important to be working with an expert when it comes to programs like this. I've been teaching WSHFC Home Buyer Classes for Down Payment Assistance in Snohomish County, King County, Skagit County, Pierce County, San Juan County and Chelan County since 2012. I'd be happy to help walk you through the next steps and prep you for homeownership! I have a lot of helpful resources right here on my website too!
Next steps involve you messaging me or, you can begin to fill out an application on my First Time Homebuyer Concierge page and I'll contact you to set up a mortgage planning meeting!
If you have any questions, at all, or want to talk first, you can contact me here - 425-350-7136. I'm excited to connect and help you begin creating wealth through homeownership!
Why Work With Dan Keller, Snohomish County Covenant Home Loan Expert and Instructor
Not all lenders understand how to properly structure Covenant loans.
Dan Keller is a top-producing Washington mortgage advisor with deep expertise in:
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Review all WSHFC loan programs
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Covenant Home Loan compliance
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Accurate income and eligibility analysis
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Pre-approvals that hold up in competitive offers
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Clear communication with Realtors and listing agents
Buyers and Realtors trust Dan Keller because Covenant loans must be done right the first time.
How To Apply For A Washington State Covenant Home Loan with Dan Keller
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Complete Our Secure Online Application
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Dan Keller and team to review application (24-hours or less)
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Set meeting to review clear explanation of your Covenant options
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Give you estimated monthly payment and closing costs scenarios
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Shop confidently for a new home with you Covenant pre-approval
No pressure. No guesswork. Just results from an 18-year mortgage professional!