See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated April 28, 2026

Homebuyer Programs in Issaquah, WA (2026)

Population: 38,977 | Median home price: $1,060,000 | Est. closing costs: $21,000 - $32,000

Issaquah is an East King County city of about 38,977 residents at the foot of the Issaquah Alps, with a median home price near $1,060,000 — one of the more expensive markets in Washington. Issaquah is one of 15 ARCH member cities, which unlocks two important programs: the ARCH East King County Down Payment Assistance Loan provides up to $30,000 as a deferred loan, and the ARCH Affordable Homeownership Program offers a curated inventory of resale-restricted homes priced well below market (often $100,000+ off comparable market-rate homes). Stack with the Washington State Housing Finance Commission Home Advantage DPA up to 5% of the loan, HomeChoice up to $15,000 for buyers with disabilities, Veterans DPA up to $10,000, and the Covenant Homeownership Program up to $150,000 for eligible historically excluded buyers. Habitat for Humanity Seattle-King and Kittitas Counties serves Issaquah families at 30%-80% of King County AMI, and the King County Housing Authority Homeownership Voucher Program lets eligible Section 8 households apply their voucher subsidy toward a mortgage. Credit union grants from BECU (up to $8,000) and WSECU (up to $10,000) reduce closing-day costs.

City Programs in Issaquah

Program Name	Type	Amount	First-Time Only	Details
ARCH Affordable Homeownership Program	Grant	Below-market home purchase; subsidy value varies by property (typically tens of thousands to $100,000+ off comparable market-rate homes).	Yes	View →
ARCH East King County Down Payment Assistance Loan	Deferred Loan	Up to $30,000	No	View →

ARCH Affordable Homeownership Program

Type:: Grant
Amount:: Below-market home purchase; subsidy value varies by property (typically tens of thousands to $100,000+ off comparable market-rate homes).
First-time only:: Yes

ARCH East King County Down Payment Assistance Loan

Type:: Deferred Loan
Amount:: Up to $30,000
First-time only:: No

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 →

King County Housing Authority Homeownership Voucher Program

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 →

Covenant Homeownership Program

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

Home Advantage DPA

Type:: Deferred Loan
Amount:: Up to 5% of the first mortgage loan amount
First-time only:: No

Home Advantage Needs-Based DPA

Type:: Deferred Loan
Amount:: Up to $10,000
First-time only:: No

HomeChoice Down Payment Assistance

Type:: Deferred Loan
Amount:: Up to $15,000
First-time only:: Yes

Opportunity Down Payment Assistance

Type:: Deferred Loan
Amount:: Up to $15,000
First-time only:: Yes

Veterans Down Payment Assistance

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 →

FHA Loans

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

Good Neighbor Next Door (HUD)

Type:: Government Property Sale Program
Amount:: 50% discount off the list price of HUD-owned homes
First-time only:: Yes

Home Possible Mortgage (Freddie Mac)

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

HomeReady Mortgage (Fannie Mae)

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

HUD $100 Down Program

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

USDA Rural Development Loans

Type:: Government-Guaranteed Mortgage
Amount:: 100% financing (no down payment required); loan amount up to appraised value
First-time only:: No

VA Loans

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
BECU First-Time Homebuyer Grant	Grant	Up to $8,000 (the lesser of 3% of purchase price, 3% of appraised value, or $8,000)	Yes	View →
Habitat for Humanity Seattle-King and Kittitas Counties Homeownership Program	Zero-Interest Loan	Below-market home sale with zero percent interest mortgage	Yes	View →
WSECU Welcome Home Grant	Grant	Up to 5% of the home sale price, not to exceed $10,000	Yes	View →

BECU First-Time Homebuyer Grant

Type:: Grant
Amount:: Up to $8,000 (the lesser of 3% of purchase price, 3% of appraised value, or $8,000)
First-time only:: Yes

Habitat for Humanity Seattle-King and Kittitas Counties Homeownership Program

Type:: Zero-Interest Loan
Amount:: Below-market home sale with zero percent interest mortgage
First-time only:: Yes

WSECU Welcome Home Grant

Type:: Grant
Amount:: Up to 5% of the home sale price, not to exceed $10,000
First-time only:: Yes

Free eligibility check

19 programs available in Issaquah. See which ones you qualify for.

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How to Apply

Step 1: Confirm your eligibility. ARCH and most local programs require household income at or below 80% of King County AMI (roughly $147,400 for a four-person household for 2026). The ARCH Affordable Homeownership Program also has tiers for households at or below 50% AMI.

Step 2: Complete homebuyer education. The Washington Homeownership Resource Center, ARCH, and Habitat all offer HUD-approved courses. ARCH DPA, WSHFC programs, and credit union grants all require a certificate plus a one-on-one pre-purchase counseling session.

Step 3: Browse ARCH affordable homes. Visit archhousing.org to see current resale-restricted homes in Issaquah and other East King County cities. Inventory turns over as current owners sell, often through dedicated lotteries.

Step 4: Get pre-approved through a participating WSHFC lender. The Washington State Housing Finance Commission has a network of lenders trained on Home Advantage, HomeChoice, Opportunity, Veterans DPA, ARCH DPA, and Covenant Homeownership programs. Call the Washington Homeownership Hotline at 1-877-894-4663 to find one. WSECU and BECU originate WSHFC loans alongside their own grants.

Step 5: For Habitat homeownership, contact Habitat for Humanity Seattle-King and Kittitas Counties through habitatskc.org. For Section 8 voucher homeownership, call the King County Housing Authority at (206) 574-1100.

Step 6: Find a home within program price limits. WSHFC sales price limits in King County align with the conventional loan limit (well above $700,000 for 2026). ARCH Affordable Homeownership homes are priced at a fraction of the Issaquah median of $1,060,000.

Step 7: Submit your loan and DPA application. ARCH DPA is processed alongside your WSHFC mortgage. ARCH Affordable home purchases follow ARCH intake processes; Habitat applications follow their own intake cycles.

Step 8: Close on your home. WSHFC and ARCH DPA loans record as deferred second mortgages. Credit union grants apply as a credit on your closing disclosure.

Frequently Asked Questions

How much down payment assistance can I get in Issaquah?+

Buyers can stack significant assistance. ARCH East King County DPA provides up to $30,000. From the state, Home Advantage DPA provides up to 5% of the first mortgage, HomeChoice adds up to $15,000, Veterans DPA adds up to $10,000, Opportunity DPA adds up to $15,000, and Covenant Homeownership can provide up to $150,000 for eligible buyers. Credit unions add up to $10,000 (WSECU) or $8,000 (BECU). When paired with state DPAs, total assistance can exceed $45,000-$60,000 in many cases.

Issaquah prices are high. How does the ARCH Affordable Homeownership Program help?+

ARCH manages an inventory of 900-plus resale-restricted homes in Issaquah and other East King County cities. These homes sell at prices well below comparable market-rate homes (often $100,000+ off) and stay affordable through resale restrictions. Income generally must be at or below 80% King County AMI. Inventory turns over as current owners sell, so check archhousing.org regularly for new listings.

Do I have to be a first-time homebuyer?+

ARCH East King County DPA does not require first-time buyer status, which is unusual and helpful. WSHFC Home Advantage, BECU and WSECU grants, and Habitat all require no homeownership in the past three years. The Covenant Homeownership Program waives the first-time buyer requirement for eligible historically excluded buyers, and the Veterans DPA does not require it for active and former service members.

What is the maximum home price?+

ARCH and WSHFC sales price limits in King County typically align with the conventional loan limit (well above $700,000 for 2026). ARCH Affordable Homeownership Program homes are priced well below the Issaquah median of $1,060,000. Habitat homes are also pre-priced below market. Verify current limits with your lender before making an offer.

What homebuyer education is required?+

ARCH and WSHFC require a HUD-approved homebuyer education course plus a one-on-one pre-purchase counseling session. The Washington Homeownership Resource Center, ARCH, and Habitat all offer qualifying classes online and in person. Plan for 5 to 8 hours of coursework.

What is the ARCH Housing Trust Fund?+

The ARCH Housing Trust Fund was developed in 1993 by Issaquah and other East King County cities to fund the development and preservation of affordable housing in the region. ARCH itself does not directly issue grants to individual buyers, but it funds the affordable inventory that buyers can purchase through the ARCH Affordable Homeownership Program and pairs with the ARCH East King County DPA Loan.