Washington State Covenant Home Program - Pros and Cons

Unlocking Homeownership: Understanding Washington State’s Covenant Program
Helping First-Time Buyers Bridge the Gap

For many Washingtonians, the dream of owning a home can feel just out of reach—especially for those from communities historically excluded from homeownership opportunities. That’s where the Washington State Covenant Homeownership Program comes in. If you're new to hearing about it, don’t worry—we’re breaking it down in plain English.

What is the Covenant Homeownership Program?

The Covenant Homeownership Program is a new initiative in Washington state, launched to help level the playing field for first-time homebuyers who are part of communities that faced housing discrimination in the past. The program is funded by a fee on recorded real estate documents and provides down payment and closing cost assistanceto those who qualify.

It’s not a loan that needs to be paid back—it's a grant designed to close the wealth and homeownership gaps caused by decades of redlining, racial covenants, and discriminatory lending.

Who Qualifies?

This program is specifically for first-time homebuyers who are descendants of people affected by housing discrimination in Washington before April 11, 1968 (the date the federal Fair Housing Act was signed).

Here’s what that means:

• You must be a Washington state resident.

• You must meet income and asset limits (these vary by county).

• You need to complete a free Covenant-eligible homebuyer education course.

• You must show a connection to a historically impacted community.

The program does require documentation and review to determine eligibility, but agencies are there to help walk you through the process.

Pros of the Covenant Program

✅ Free Money for Down Payment & Closing Costs
The biggest perk: qualified buyers can get thousands of dollars to cover down payments or closing costs—some of the biggest hurdles to homeownership.

✅ No Repayment Required
Unlike a loan or second mortgage, this money does not have to be repaid. It’s a true grant.

✅ Addresses Historical Discrimination
This program is one of the first of its kind in the nation that directly acknowledges and attempts to repair the damage caused by systemic housing discrimination.

✅ Works with Other Programs
You can combine this assistance with other down payment help, VA loans, FHA, or conventional mortgage programs for even more buying power.

✅ Homebuyer Education
Free education courses provide guidance on budgeting, mortgages, and the buying process—something every first-time buyer can benefit from.

Cons of the Covenant Program

❌ Strict Eligibility Requirements
The program is not open to everyone—you must be able to prove a connection to communities harmed by past housing discrimination. That means not all first-time buyers will qualify.

❌ New Program = Some Uncertainty
As a relatively new program (launched in 2024), there may be growing pains, including how long approval takes or how well-integrated it is with lenders and agents.

❌ Funding Availability May Be Limited
Like many grant programs, it may be subject to annual funding limits—once the money runs out for the year, applicants may need to wait.

❌ Documentation Can Be Tricky
Proving your eligibility (including historic discrimination impact) can be a challenge for some, especially if records or family history are unclear.

Bottom Line: Is It Worth Looking Into?

Absolutely.
If you’re a first-time homebuyer in Washington and come from a community that has historically faced housing discrimination, the Covenant Homeownership Program could be a game-changer. It’s one of the boldest state-level moves toward closing the racial and economic homeownership gap in recent memory.

It’s also a chance to build wealth and stability for your family—something that discriminatory policies prevented for generations.

How to Get Started

Need help or want to talk through your options? Reach out—there are trained professionals who can guide you every step of the way, and I’d be happy to connect you with local resources.

Homeownership should be for everyone.
With programs like Covenant, Washington is helping make that a reality—one home at a time.