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

Homebuyer Programs in University Place, WA (2026)

Population: 35,049 | Median home price: $620,000 | Est. closing costs: $12,500 - $18,500

Skyline of University Place, WA

University Place is a Pierce County city of about 35,049 residents bordering western Tacoma along Puget Sound, with a median home price near $620,000. Although the City of University Place does not run its own homebuyer down payment assistance program, University Place is on the eligible list for the Pierce County Down Payment Assistance Program (the County program excludes only Tacoma, Lakewood, Bonney Lake, Auburn, and Pacific). The Pierce County DPA provides up to $24,900 as a 30-year deferred loan paired with a WSHFC first mortgage. 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. Tacoma/Pierce County Habitat for Humanity serves University Place families at 80% AMI or below. Credit union grants from BECU (up to $8,000) and WSECU (up to $10,000) reduce closing-day costs.

County Programs in Pierce County

Pierce County Down Payment Assistance Program
Type:
Deferred Loan
Amount:
Up to $24,900
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

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

How to Apply

Step 1:

Confirm your eligibility. Most local programs require household income at or below 80% of Pierce County AMI (roughly $96,500 for a four-person household). Pull a recent pay stub and tax return to verify.

Step 2:

Complete homebuyer education. The Washington Homeownership Resource Center, Tacoma/Pierce County Habitat, and HomeSight all offer HUD-approved courses. The Pierce County DPA, WSHFC programs, and credit union grants all require a certificate plus a one-on-one pre-purchase counseling session.

Step 3:

Contact a participating WSHFC lender for the Pierce County DPA. The Pierce County DPA pairs only with WSHFC Home Advantage or House Key Opportunity first mortgages. Call the Washington Homeownership Hotline at 1-877-894-4663 to find a lender. WSECU and BECU originate WSHFC loans alongside their own grants.

Step 4:

For Habitat homeownership, contact Tacoma/Pierce County Habitat for Humanity at owninpierce.com or 4824 South Tacoma Way, Tacoma. You must have lived or worked in Pierce County for at least 12 months and complete 100 sweat equity hours within 4-6 months.

Step 5:

Find a home within University Place city limits or eligible Pierce County areas. The Pierce County DPA covers University Place. WSHFC, BECU, and WSECU programs work countywide.

Step 6:

Submit your loan and DPA application. The Pierce County DPA processes alongside your WSHFC first mortgage. Habitat applications follow Habitat intake cycles.

Step 7:

Close on your home. Pierce County and WSHFC DPA loans record as deferred second mortgages. Credit union grants apply as a credit on your closing disclosure.

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