Covenant Home Loan Program in Snohomish County: Up to $150,000 in Down Payment Assistance
- Dan Keller
- 13 hours ago
- 3 min read
If you’re trying to buy a home in Snohomish County and feel stuck because of the down payment, this is the program you need to know about.
The Covenant Home Ownership Program through the Washington State Housing Finance Commission offers up to $150,000 in down payment assistance for eligible Washington homebuyers.
And in some cases, that assistance may be forgiven after five years.
For buyers in Everett, Lynnwood, and throughout Snohomish County, this can dramatically change affordability.
Buyers interested in programs like the Covenant loan often start with a homebuyer education class, which explains down payment assistance options available in Washington.
What Is the Covenant Home Ownership Program?
The Covenant Home Loan Program was created after a state-commissioned study found documented housing discrimination in Washington prior to 1968.
The program provides state-funded down payment assistance to eligible first-time homebuyers who can document heritage linking to a family member who lived in Washington prior to 1968 and belonged to an identified ethnic group.
This is not a bank promotion. It is administered directly through the Washington State Housing Finance Commission.
How the $150,000 Assistance Works
Up to $150,000 in assistance
0% interest
No monthly payment
Repaid when the home is sold or refinanced
The assistance can cover:
Down payment
Closing costs
In many Snohomish County or King County scenarios, this allows buyers to reach 20% down, eliminating PMI and lowering the monthly payment.
Watch: Covenant Home Loan Program Explained
Real Example: Snohomish County Buyer
We recently helped a first-time buyer in Snohomish County who was renting for $2,800/month and had limited savings.
Initially, they were approved using a traditional FHA loan with standard down payment assistance. Their projected payment at $575,000 was about $4,115/month.
After qualifying for the Covenant Program:
They received $129,000 in assistance
Put 20% down
Eliminated PMI
Reduced their payment to $3,330/month
That’s a $785/month difference... while building equity instead of renting.
Who Qualifies?
There are three main requirements:
1. First-Time Homebuyer
In Washington, that means you haven’t owned a home in the past three years.
2. Income Limits
Household income must fall under program maximums (limits vary by county and may change).
3. Heritage Documentation
You must be able to document heritage linking to a parent, grandparent, or ancestor who lived in Washington prior to 1968 and belonged to an identified ethnic group from the state study.
Documentation may include:
Birth or marriage certificates
Death certificates
Military records
School transcripts
Public records
The 5-Year Forgiveness Benefit
Under current guidelines, buyers earning below 80% of Area Median Income may qualify for forgiveness after five years, provided:
The home remains owner-occupied
The mortgage stays current
In qualifying cases, the assistance may not need to be repaid.
That can significantly impact long-term wealth building.
Why This Matters in Snohomish County
Home values in Snohomish County have remained resilient due to limited inventory and continued demand.
For many buyers in Everett, Lake Stevens, Marysville, and surrounding areas, the biggest obstacle isn’t income, it’s the down payment. This program directly addresses that barrier.
The Covenant Home Loan Program is available to eligible homebuyers throughout Snohomish County, including buyers purchasing in:
If you're planning to buy a home in Snohomish County and want to see if you qualify for the Covenant program, contact me for a quick consultation to help determine eligibility.
Frequently Asked Covenant Home Loan Program
Is the Covenant Home Ownership Program available in Snohomish County?
Yes. Eligible buyers purchasing in Snohomish County can use the program if they meet state requirements.
Do I have to pay back the $150,000?
The assistance is structured as a 0% interest loan. It is typically repaid when you sell or refinance. Some borrowers may qualify for forgiveness after five years if income limits apply.
Is this only for low-income buyers?
No. There are maximum income limits, but many middle-income households in Snohomish County may still qualify.
Can I use this with FHA or Conventional loans?
Yes. The Covenant assistance works alongside a traditional mortgage and requires full underwriting approval.
How do I know if I qualify?
The best first step is a short strategy call to review income, homeownership history, and heritage documentation options.
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