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By Tyler Thompson · Licensed Real Estate Agent · Updated April 24, 2026

Homebuyer Programs in Tacoma, WA (2026)

Population: 222,867 | Median home price: $470,000 | Est. closing costs: $9,500 - $14,000

Skyline of Tacoma, WA

Tacoma is the county seat of Pierce County and Washington's third-largest city, with a population of over 222,000 and a median home price around $470,000. Tacoma offers one of the most generous city-level down payment assistance programs in the state: the City of Tacoma Down Payment Assistance Program provides up to $60,000 as a zero-interest deferred second mortgage for first-time buyers within city limits. Buyers can also use the WSHFC Tacoma Downpayment Assistance Program (up to $20,000 at 4% simple interest), the Homeownership Center Northwest Evergreen program (0% silent second mortgage), and Tacoma/Pierce County Habitat for Humanity. Combined with Washington State Housing Finance Commission programs like Home Advantage DPA, Opportunity DPA (up to $15,000), Veterans DPA (up to $10,000), and the Covenant Homeownership Program (up to $150,000 for eligible buyers), qualified first-time buyers in Tacoma can stack well over $100,000 in assistance.

City Programs in Tacoma

City of Tacoma Down Payment Assistance Program
Type:
Deferred Loan
Amount:
Up to $60,000
First-time only:
Yes
Tacoma Downpayment Assistance Loan Program (WSHFC)
Type:
Deferred Loan
Amount:
Up to $20,000
First-time only:
Yes

State Programs in Washington

Covenant Homeownership Program
Type:
Forgivable Loan
Amount:
Up to $150,000 (20% down plus 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

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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
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

Homeownership Center Northwest Evergreen Program
Type:
Silent Second Mortgage
Amount:
As-needed second mortgage up to program limits
First-time only:
Yes
Tacoma Pierce County Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Below-market home sale with zero percent interest mortgage and payment capped at 30% of gross monthly income
First-time only:
Yes

How to Apply

Step 1:

Check your eligibility. Most Tacoma-area programs require household income at or below 80% of Pierce County AMI. For example, the City of Tacoma DPA and Habitat for Humanity both use the 80% AMI threshold. WSHFC Opportunity DPA is capped at $79,450 for 1-2 person Pierce County households.

Step 2:

Complete homebuyer education. The City of Tacoma and WSHFC programs require a 5-hour WSHFC homebuyer education class (heretohome.org). Homeownership Center Northwest also offers a 5-hour homeownership class; contact them at (253) 627-6560.

Step 3:

Decide which Tacoma DPA product fits best. The City of Tacoma Down Payment Assistance Program offers the largest amount (up to $60,000 at 0% interest). The WSHFC Tacoma DPA (up to $20,000 at 4%) can be layered or used independently. HCNW Evergreen offers an "as-needed" silent second at 0%.

Step 4:

Get pre-approved through a WSHFC participating lender. This unlocks Home Advantage, Opportunity, HomeChoice, Veterans, and Covenant Homeownership Program, and is required to layer the Tacoma DPA products.

Step 5:

If you want a below-market Habitat home, contact Tacoma/Pierce County Habitat for Humanity at their office at 4824 South Tacoma Way or visit owninpierce.com to attend a homebuyer orientation. You must have lived or worked in Pierce County for at least 12 months.

Step 6:

Find a home within Tacoma city limits for the largest DPA products. The City of Tacoma DPA and WSHFC Tacoma DPA both require purchase inside Tacoma's boundaries.

Step 7:

Close on your home. Most DPAs are reserved by the lender at mortgage underwriting and disbursed at closing.

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