One of the most common conversations I have with first-time buyers in Vancouver and Clark County goes something like this: they've been saving for years, they have decent credit, they have stable income, but they just can't quite get to the down payment number they think they need.
Then I tell them about Washington's Bond Loan program, and everything changes.
Here's what it is, who qualifies, and how to use it.
Washington State's Housing Finance Commission runs a program called Home Advantage. It's sometimes called the WA Bond Loan because it's funded through mortgage revenue bonds issued by the state.
The short version: the state gives you a second loan to cover part of your down payment. You don't pay it back monthly. It sits behind your first mortgage and gets repaid when you sell, refinance, or pay off the home. The amount is either 3%, 4%, or 5% of your loan amount — your choice depending on your situation.
On a $400,000 home, 4% is $16,000 toward your down payment that you didn't have to save up. That's real money.
The WA Bond Loan is not a grant — it does need to be repaid eventually. But there's no monthly payment and no interest on most versions of the program, which makes it very borrower-friendly.
You do not have to be a first-time buyer to use this program, though there are some restrictions for repeat buyers depending on which version you qualify for. Your mortgage broker can sort out the details based on your specific situation.
The down payment assistance works alongside a conventional loan or an FHA loan. Your broker structures it as a first mortgage plus a second mortgage that covers the assistance amount. The second mortgage is set up as a deferred payment loan with no monthly obligation.
The first mortgage rate through the program is typically competitive with market rates, and sometimes slightly below depending on when you lock.
Honestly, there isn't much of one. The main things to know:
The loan is repaid when you sell or refinance. If you stay in the home long-term, you'll repay it at the end of your mortgage. It's not free money forever, but it gets you into a home now instead of spending another two or three years saving.
The income limit of $180,000 knocks out very few buyers in Clark County. Most of the families I work with qualify without issue.
And the homebuyer education course is actually worth doing regardless of whether you use this program. It covers the whole process from credit to closing and most buyers say it made them feel a lot more confident going into it.
You apply through a participating lender — which is where I come in. Not every lender is approved to originate Home Advantage loans. I work with this program regularly and can walk you through whether it makes sense for your situation, what amount of assistance to take, and how to structure the full loan to minimize your costs at closing.
Takes about 10 minutes. I'll tell you exactly what programs you're eligible for and what your monthly payment would look like.
Start Your ApplicationQuestions? Reach me at ariel@avidbroker.com or (360) 326-5022. I'm happy to run the numbers with you before you commit to anything.