A Pathway to Homeownership
A Pathway to Homeownership
Healthy Smart Homes presents the Covenant Homeownership Program Partnership
Healthy Smart Homes is proud to announce our contract through the WA State Housing Finance Commission Covenant Homeownership Program to assist individuals and families in obtaining homeownership. Please learn more about the program below, along with entities we collaborate with on this amazing homeownership program.
Healthy Smart Homes provides housing counseling through our community partner.
We also provide additional resource referrals to you and your family. See list below for Washington and Massachusetts.
FAQs
How does the Covenant Homeownership Program help homebuyers?
The Covenant Homeownership Program provides 20% (up to $150K) downpayment and closing cost assistance for first-time homebuyers** (see first-time homebuyer definition under eligible for this program) in the form of a loan, secondary to the primary mortgage loan. The loan has a 0% interest rate and zero monthly payments.
Why must the homebuyers or family member have lived in Washington before April 1968?
In April 1968, the passage of the Fair Housing Act made racial discrimination in housing illegal. Discrimination persisted despite the new law; however, the state no longer had an official or legal role in enforcing and upholding it.
What if I do not qualify for the Covenant Program?
There are additional grant assistance programs that can be made available to you through the WA State Housing Finance Commission. Call a representative at Healthy Smart Homes who can help you navigate your pathway to home ownership.
These downpayment assistance and debt reduction programs are resources that you could also potentially “layer” with the Covenant Program.
What are the current and trends of homeownership rates in WA for the past several decades?
Over the past five decades, African Americans have the lowest homeownership rate. Below is the chart provided by the University of WA
How do I apply for the Covenant Homeownership Program?
Through Healthy Smart Homes Inc., you can access this program by working with our staff to begin your journey toward homeownership. Please contact us by phone or email, and we will get back to you as soon as possible.
Prior to or after you meet with an HSH representative, register for Homebuyer Education (Housing Counseling, Budgets, etc.) and First-Time Homebuyer classes with a host of HUD-Certified Housing Counseling providers:
WA Housing Finance Commission providers and a host of other HUD-certified Housing Counselors of your choice. Classes are available on-line or in-person. Contact your Housing Counseling Organization of your choice.
The First-Time Homebuyer Certificate in necessary to qualify for any downpayment assistance program.
What is 120% of Area Median Income (AMI)?
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.) To determine your AMI, please click on “Area Median Income”.
Who is considered a first-time homebuyer?
If you have not owned your primary residence in the past 3 years or more, you are considered a first-time homebuyer. If you currently own property that is not your primary residence, you may still qualify. Reach out to HSH staff to discuss the particulars of your situation.
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 120% of the Area Median Income (AMI) in the county you are interested in purchasing a home.
**First-time homebuyer is a person who does not currently own a home or has not own a home in three years.
The homebuyer or a parent/grandparent/great-grandparent 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 another Pacific Islander*, Korean or Asian Indian.
*Following the U.S. Census definitions, “Pacific Islander” includes individuals with origins of indigenous people in Hawaii, Guam, Samoa, or other Pacific Islands, including, for example, Samoan, Chamorro, Tongan, Fijian, and Marshallese.
Can Indigenous Natives to their tribe use the Covenant Homeownership Program to purchase a home on sovereign and non-sovereign land?
Yes. Tribal Sovereign laws will be adhered to and utilized for any purchases and sales. Please have your lender work with the tribal council representative from your respective tribe.
Does the Covenant Program have a “Pre-Reservation Program? Yes
See Washington State Housing Finance Commission Guidelines using this link.
Yes. The demand for the Covenant 20% (up to $150K) plus closing costs Downpayment Assistance Program has increased. Funds for the downpayment assistance program derive from real estate recording fees and are deposited into an account with the WA State Housing Finance Commission on a monthly basis. The number of applicants far exceeds the monthly fund distribution. Thus, a wait list has been established to ensure potential borrowers have access to funds based on the month the funds are available. Approved applicants will receive a letter identifying what month buyers can begin searching for a home based on available funds. Initially, the borrower has 30 days to find a home and sign a purchase and sales agreement. If the borrower has not found a home in 30 days, they can request a 30 day extension.
Homeowner Rates and Covenant Program Resources and National Fair Housing Alliance Report and Video:
WA State Covenant Homeownership Study conducted by National Fair Housing Alliance. Video and Study Links.
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2025 LEGISLATIVE UPDATE
Can the Covenant Program Downpayment Assistance of 20% Downpayment Assistance be Forgiven? If yes, under what circumstances:
The borrower(s) income must have been at or below the loan forgiveness income threshold, at the time of loan purchase (per the signed underwriter’s loan approval as submitted to the loan servicer for loan pooling). Each year’s loan forgiveness income thresholds will be posted on the Commission’s website.
The Commission and its loan servicer must retain the loan for a minimum of 5 years and one month after loan closing. If the loan is not in the Commission’s portfolio for any reason at that point, then loan forgiveness is null and void.
The borrower who met Covenant program eligibility requirements (for race and family history in Washington prior to 1968) must owner occupy the property as their principal residence at the time of loan forgiveness.
The first mortgage loan needs to be in good standing at the time of forgiveness. If the first mortgage is delinquent, the Commission will not forgive the subordinate Covenant DPA mortgage until a future time when the first mortgage is current as applicable.
To be forgiven on the loan, the homeowner needs to be:
A borrower on the original loan; OR
Inherit the home through the original borrower’s passing AND be a descendant or immediate family member (including spouse).
Documents will need to be submitted to the Commission verifying death and proof of inheritance, as applicable.
ADDITIONAL RESOURCES
WASHINGTON
King County
Food Security
Need access to food? Reach out or visit any of the following food banks.
Public Health Centers
Need access to health care centers for you and your family? The following link has centers within King County.
Public Libraries
Need access to resources in order to be able to apply for financial grants? Visit this any of these locations.
Pierce County
Food Security
Need access to food? Reach out or visit any of the following food banks.
Public Health Centers
Need access to health care centers for you and your family? The following link has centers within Pierce County.
Public Libraries
Need access to resources in order to be able to apply for financial grants? Visit this any of these locations.
Snohomish County
Food Security
Need access to food? Reach out or visit any of the following food banks.
Public Health Centers
Need access to health care centers for you and your family? The following link has centers within Pierce County.
Public Libraries
Need access to resources in order to be able to apply for financial grants? Visit this any of these locations.
MASSACHUSETTS
Norfolk County
Food Security
Need access to food? Reach out or visit any of the following food banks.
Public Health Centers
Need access to health care centers for you and your family? The following link has centers within Norfolk County.
Public Libraries
Need access to resources in order to be able to apply for financial grants? Visit this any of these locations.
Suffolk County
Food Security
Need access to food? Reach out or visit any of the following food banks.
Public Health Centers
Need access to health care centers for you and your family? The following link has centers within Suffolk County.
Public Libraries
Need access to resources in order to be able to apply for financial grants? Visit this any of these locations.