Covenant Homeownership Program

Washington States’ Covenant Homeownership Program provides down payment and closing cost assistance for eligible 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 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, or great-grandparent of the homebuyer) 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.

FIND OUT IF THE COVENANT HOMEOWNERSHIP PROGRAM IS FOR YOU

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877-849-4663
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Frequently Asked Questions

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In spring 2023, thanks to the advocacy and leadership of the Housing Development Consortium, the Black Home Initiative, Rep. Jamila Taylor, Sen. John Lovick, and Rep. Frank Chopp, the Washington State Legislature passed the Covenant Homeownership Act with bipartisan support. The act creates a new program and funding source to help people who have been impacted by Washington’s history of housing discrimination to become homeowners.

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, or great-grandparent of the homebuyer) 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.

You can access this program by working with a Commission-trained lender to prequalify for a mortgage loan and establish your eligibility. The Washington State Homeownership Hotline at 1-877-894-4663 is also a great way to easily connect to the Covenant Homeownership Program, as well as other free support, guidance and financial help.

The hotline will help you reach the next step based on your situation, goals and preferences. If you are not quite ready for a mortgage, the hotline will connect you with free support and guidance to get on the path to your goal, no matter where you are today.

Area Median Income (AMI) is set by county. This program uses the AMI for the county in which you are buying the home. (Further income restrictions may apply depending on the first-mortgage program.) See county chart below:

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.

The Commission intends to be as flexible as possible in accepting documentation of race and pre-1968 residency in Washington. Again, the homebuyer must submit this documentation for the person who lived in Washington before 1968—whether that person is the homebuyer themselves or their parent/grandparent/great-grandparent.

Some examples of acceptable documents include:

• Birth & Death certificates
• School records
• Death certificates
• Church records
• Probate Records
• Newspaper clippings
• Marriage certificates
• Employer records
• Military records
• Genealogical records from reliable sources
• Tribal membership records
• Draft card
• Social Security Claims & Applications
• WA State Concealed Weapon License
• Census data
• Obituaries
• Historical Societies

Your lender and/or housing counselor will help you gather the documents. Some good sources include the following. The Commission will continue to add resources to this section.

In partnership with the Washington State Housing Finance Commission, visit https://www.wshfc.org/covenant/index.htm for more information about the Covenant Homeownership Program, Covenant Homeownership Act, Covenant Homeownership Study, and other resources.