See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 24, 2026
Homebuyer Programs in Federal Way, WA (2026)
Federal Way sits between Seattle and Tacoma in south King County and is Washington's tenth-largest city, with a median sale price around $610,000. Federal Way buyers have one of the most generous local DPA stacks in the state: HomeSight's King County Purchase Assistance provides up to $45,000 as a deferred 3% loan for buyers in Auburn, Federal Way, Tukwila, and unincorporated King County, and stacks on top of WSHFC state programs like Home Advantage DPA (up to 5% of the mortgage) and HomeChoice, Opportunity, or Veterans second mortgages worth $10,000 to $15,000 each. Federal Way is not an ARCH East King County member, so the ARCH DPA loan is not available here. Countywide nonprofit programs reach Federal Way as well: Habitat for Humanity Seattle-King & Kittitas Counties, Homestead Community Land Trust, and HomeSight's Sam Smith "Hi Neighbor" Fund (up to $20,000 for eligible Black and African American buyers). The King County Housing Authority also administers a Homeownership Voucher program for qualifying Section 8 participants in Federal Way. A coordinated stack of HomeSight King County plus WSHFC can exceed $60,000 in total buyer assistance on a typical Federal Way purchase.
County Programs in King County
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| King County Housing Authority Homeownership Voucher Program | Government-Guaranteed Mortgage | Monthly Housing Choice Voucher subsidy applied to mortgage payment in place of rent. | Yes | View → |
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Monthly Housing Choice Voucher subsidy applied to mortgage payment in place of rent.
- First-time only:
- Yes
State Programs in Washington
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Covenant Homeownership Program | Forgivable Loan | Up to 20% of the purchase price (or appraised value, if lower), capped at $150,000, plus buyer-paid closing costs | Yes | View → |
| Home Advantage DPA | Deferred Loan | Up to 5% of the first mortgage loan amount | No | View → |
| Home Advantage Needs-Based DPA | Deferred Loan | Up to $10,000 | No | View → |
| HomeChoice Down Payment Assistance | Deferred Loan | Up to $15,000 | Yes | View → |
| Opportunity Down Payment Assistance | Deferred Loan | Up to $15,000 | Yes | View → |
| Veterans Down Payment Assistance | Repayable Loan | Up to $10,000 | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to 20% of the purchase price (or appraised value, if lower), capped at $150,000, plus buyer-paid closing costs
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to 5% of the first mortgage loan amount
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- Up to $10,000
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- Up to $15,000
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $15,000
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Up to $10,000
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity Seattle-King and Kittitas Counties Homeownership Program | Zero-Interest Loan | Below-market home sale with zero percent interest mortgage | Yes | View → |
| HomeSight King County Purchase Assistance | Deferred Loan | Up to $45,000 | Yes | View → |
| Homestead Community Land Trust Homeownership | Silent Second Mortgage | Homes sold 30-50% below market through community land trust model | Yes | View → |
| Sam Smith Hi Neighbor Homeownership Fund | Deferred Loan | Up to $20,000 | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Below-market home sale with zero percent interest mortgage
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $45,000
- First-time only:
- Yes
- Type:
- Silent Second Mortgage
- Amount:
- Homes sold 30-50% below market through community land trust model
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $20,000
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Most Federal Way programs target households at or below 80% of King County area median income, which is roughly $130,000 for a family of four. The HomeSight King County Purchase Assistance program and Sam Smith Fund have their own income and credit-score requirements — your housing counselor will map your numbers.
Step 2: Complete homebuyer education. HomeSight is the HUD-approved housing counseling agency that administers the King County Purchase Assistance loan. Call HomeSight at 206-723-4355 to enroll in their homebuyer education and one-on-one pre-purchase counseling. WSHFC's separate free education class is also required for WSHFC first mortgages.
Step 3: Work with HomeSight directly. Because HomeSight administers the region's largest DPA program for Federal Way, most buyers start the process by enrolling with HomeSight first, then being referred to a participating lender. HomeSight can also screen you for the Sam Smith Fund and Social Justice DPA products.
Step 4: Get pre-approved with a participating lender. WSHFC requires a participating lender. Many large Puget Sound credit unions and banks — including BECU, Sound Credit Union, WaFd, and Washington Federal — participate as WSHFC lenders and work with HomeSight on layered financing.
Step 5: Find a home within program limits. WSHFC Home Advantage and Opportunity purchase price limits for King County adjust annually and are higher than most Washington counties. Federal Way prices are generally below the King County ceiling.
Step 6: Submit your application. Your lender submits the WSHFC DPA second mortgage alongside the first. HomeSight's King County Purchase Assistance is underwritten separately; plan for a slightly longer timeline than a conventional closing.
Step 7: Close on your home. DPA funds are applied at closing to cover down payment and allowable closing costs. Deferred loans do not have monthly payments and are repaid only when you sell, refinance, or reach the 30-year term.
Frequently Asked Questions
How much down payment assistance can I get in Federal Way?+−
What is the HomeSight King County Purchase Assistance program?+−
Is Federal Way eligible for the ARCH East King County Downpayment Assistance Loan?+−
Do I have to be a first-time homebuyer?+−
What homebuyer education is required?+−
Can I use a Housing Choice Voucher to buy in Federal Way?+−
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