Historic Justice, Modern Help: Washington’s Covenant Downpayment Program Explained

What if I told you that your family’s history — not your credit score — could qualify you for a life-changing downpayment loan in Washington?

Welcome to one of the most groundbreaking housing equity programs in the country.

Covenant Homeownership Downpayment Assistance Program. It’s not just another loan. It's a historic recognition of past injustice — and a bold move to create new ownership opportunities for communities long shut out.

Why This Program Exists

An illustration comparing historic redlining maps and modern inclusive neighborhoods in Washington State, showing diverse individuals walking toward a house with a green checkmark symbolizing access and equity.

Imagine being told your family couldn't live in a neighborhood — not because they couldn’t afford it, but because of the color of their skin.

That happened. And not just in the South. It happened right here in Washington.

From redlining maps inked in exclusion, to restrictive covenants that spelled out who couldn’t live where, Washington's housing history isn't just stained — it’s still impacting families today.

In response, state lawmakers passed House Bill 1474, led by Rep. Jamila Taylor. It created a special fund aimed at dismantling the generational barriers caused by racially discriminatory housing policies.

The result? A state-backed loan program that treats equity not as a buzzword, but as a budget line.

How It Works

This isn’t your average downpayment assistance. Here’s what makes the Covenant Program stand out:

• Up to $150,000 in assistance for downpayment plus closing costs

• 0% interest

• Deferred repayment until you sell, refinance, or hit 30 years of ownership

You must:

• Be a first-time homebuyer

• Make under 100% of the Area Median Income (AMI)

• Be a Washington resident

• And either:

  • Have lived in Washington prior to April 11, 1968, or

  • Be descended from someone who was harmed by discriminatory housing policies in Washington before that date

    
    

This framework ensures that the people most affected by historic injustice receive targeted support—not just general assistance.

Who Qualifies

Let’s talk specifics.

The program is geared toward people from racial and ethnic communities that a state study identified as historically harmed:

• Black or African American

• Hispanic or Latino

• Native American

• Native Hawaiian

• Pacific Islander

• Korean

• Asian

• Indian

  
  

Eligibility isn't just about checking a box — you’ll need documentation. Think vital records, family histories, even historical proof of discrimination.

Pro tip: Start gathering those documents now. Don’t wait until you’ve found the perfect bungalow in Tacoma.

And remember: The Washington State Housing Finance Commission provides guidance to help you trace your eligibility. You're not alone in this process.

What This Means for the Market

This program isn’t a handout — it’s a historic investment in equity.

• Families who were renters for generations could finally step into ownership.

• Lenders and brokers get to play a role in dismantling housing inequality.

• Affordable housing demand may shift as more eligible buyers enter the market with serious purchasing power.

• Developers may respond with new housing projects tailored to this influx of buyers, increasing housing supply and improving neighborhoods.

  
  

By injecting capital into communities historically denied it, this initiative stands to create ripples far beyond any single mortgage.

Real People, Real Hurdles, Real Hope

Yes, tracking your family's housing history can be challenging. You might find yourself on ancestry websites or even searching census archives.

But this effort isn’t just about qualifying for a loan. It’s about reclaiming a story — and writing a new one.

You could be the first in your family to own a home. To build equity. To stop renting.

And it’s not just a win for your household. It’s a win for your entire legacy.

Imagine telling your children, “We used to rent. But now, this home? It’s ours — because our history mattered.”

What You Can Do Next

Here’s how to get started:

1. Visit wshfc.org/covenant

2. Sign up for a free homebuyer education class

3. Begin gathering your family’s historical documents

4. Contact a lender familiar with the program

   
   

If you're a realtor, broker, or housing counselor: learn the details. You could be the one who opens the door to a family’s first home.

Also consider sharing this information at community events, churches, and neighborhood associations. Spread the word.

More Than a Mortgage

This program isn’t just about buying a house. It’s about restoring something that was stolen: the chance to own, to build, and to belong.

Because in Washington, housing justice is no longer just a dream. It’s policy.

The Covenant Program is a promise — one that says our past doesn't have to dictate our future.

FAQs

1. Is this a grant or a loan?It’s a 0% interest, deferred-payment loan. You don’t pay it back until you sell, refinance, or after 30 years.

2. What documents are needed to prove eligibility?You may need vital records, genealogy documents, or other historical proof linking your family to housing discrimination in Washington prior to April 11, 1968.

3. Can I use this with other homebuyer programs?Yes! Many buyers pair it with other local, state, or federal assistance programs.

4. Is there a deadline to apply?No strict deadline yet, but funds are limited. Apply as soon as you're ready.

5. What if I’m not sure I qualify?Contact the Washington State Housing Finance Commission. They can help you determine eligibility and point you to trusted resources.