Tacoma Down Payment Assistance Program

Offered by the Washington State Housing Finance Commission, Tacoma Down Payment Assistance is a loan in the form of a second mortgage that can be used with the Home Advantage loan. As much as $20,000 is offered to help with costs associated with closing and the down payment.

This loan has a simple interest of 4%, but payments can be deferred for up to 30 years. While this loan does not have a monthly payment requirement, the loan must be repaid either when the house is sold, refinanced, transferred, is no longer the borrower’s primary residence, or when the first mortgage has been paid in full.

In order to qualify, the applicant must be a first-time homebuyer and must be planning on using the house as their primary residence. The applicant must be able contribute at least $500 towards the home purchase, but this is allowed to be from gift funds if necessary. Homebuyer education will be required. Applicants also have to meet specified income limits, which as of 2020, are as follows:

-- 1 person household: $40,500
-- 2 person household: $46,300
-- 3 person household: $52,100
-- 4 person household: $57,850
-- 5 person household: $62,500
-- 6 person household: $67,150
-- 7 person household: $71,750
-- 8 person household: $72,300

The property cannot have had any tenants for at least 90 days before the sale agreement. Manufactured homes are not allowed with this program. The house must also fall within the following purchase price limits for 2020:

-- Existing Construction: $218,000
-- New Construction: $228,000

Other programs in Washington:

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