Introducing The Covenant Homeownership Program

For many aspiring homeowners in Whatcom County, including Bellingham, Lynden, and surrounding areas, the dream of owning a home can feel just out of reach. High home prices, rising interest rates, and an increasing cost of living have made it challenging for even median-income earners to break into the housing market. But there’s hope: the Covenant Homeownership Program, introduced by the Washington State Housing Finance Commission (WSHFC), is designed to change that and help more Washingtonians become homeowners. If you are a First-time homebuyer, this article is a MUST read, as you could be eligible for enormous savings.

What Is the Covenant Homeownership Program?

The Covenant Homeownership Program (CHP) provides financial assistance to help eligible first-time homebuyers with down payment and closing costs. Funded by a small recording fee on real estate transactions, the program was established in response to a 2022 law recognizing that past discriminatory housing practices—including redlining, restrictive covenants, and mortgage discrimination—continue to impact Washington residents today. The goal is to begin repairing that harm by helping more people build wealth and stability through homeownership.

The Covenant Homeownership Programs gives eligible homebuyers up to $150,000 for a downpayment & closings costs on the purchase of their home! This money is given in the form of a loan at 0% interest that is paid back when the house is sold or the mortgage is refinanced. And if you are also eligible for the loan forgiveness, you may not have to pay anything back at all!

Who Qualifies for the Covenant Homeownership Program?

This program is intended for first-time homebuyers who can demonstrate a historical connection to communities harmed by discriminatory housing practices in Washington State. You are eligible for this program if:

• You 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 other Pacific Islander, Korean or Asian Indian.
• You have First-time homebuyer status (see below).
• You make under 120% of your county's median income ($130,800 in Whatcom County in 2025).
• You complete a homebuyer education course approved by the WSHFC.

If you’re unsure whether you qualify, or don't think you qualify, but are interested in other Down Payment Assistance Programs, reach out to Josh Crown at 360-389-6906.

Who Qualifies as a First-Time HomeBuyer?

Many people think that you could have never owned a home to qualify as a First-time homebuyer, but that isn't the full story. Under the Covenant Homeownership Program, here is who qualifies as a First-time homebuyer: 

• You have not owned a home within the past three years
• You are a single parent who has only owned a home while married to a former spouse.
• You are a displaced homemaker and have only owned a home with a spouse.
• You have only owned a residence that had no permanent foundation (such as a manufactured home)
• You only owned a property that was determined to be uninhabitable.
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What Is Loan Forgiveness & Am I Eligible for That as Well?

While households earning up to 120% of the area median income (AMI) may qualify for the Covenant Homeownership Program, there are additional benefits for those earning 80% of the AMI or less (currently $86,720 in Whatcom County). If your household income falls below that threshold at the time of purchase, and you have owned your home for at least five years, the down payment and closing cost assistance may be fully forgiven, meaning you won’t have to pay it back. Meaning, FREE MONEY. 

Final Thoughts

The Covenant Homeownership Program offers a valuable opportunity for first-time homebuyers in Washington State to achieve homeownership. If you are in Whatcom or Skagit County I would love to help you take advantage of these savings. 

Are you or somebody you know eligible for this program? Give me a call today.

📞 Josh Crown
📍 Local Real Estate Expert | Serving Whatcom & Skagit County
📱 (360) 389-6906