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Down Payment Assistance

Program Information

The Tacoma Down Payment Assistance is a second mortgage loan program that combines with the Washington State Housing Finance Commission's Home Advantage first mortgage loan program. The Tacoma Down Payment Assistance program is intended for people who are buying a home within the eligible Tacoma City Limits. The program allows up to $30,000 in down payment assistance with payments deferred for 30 years at a 2% simple interest rate.

There are no monthly payments on the loan. The balance is due and payable when you:
  • Sell, refinance or transfer ownership of the home
  • Fail to maintain status as a principal place of residence
  • When the home is paid off (on or before 30 years)

Use of Funds

Funds may be used for down payment and closing costs based upon need. Your minimum contribution to the down payment is $1000. Gift funds are allowed to meet the minimum contribution.


Program Eligibility

To be eligible for the Tacoma Down Payment Assistance Program your household must meet certain income requirements.  View the maximum income limits table below to determine if you are eligible for a down payment assistance loan.

Due to federal guidelines, the home being purchased must not have been occupied by a tenant within 90 days of the purchase and sale agreement. The home must also meet a maximum purchase price. See Maximum Purchase Price table below. You must be a first-time homebuyer and the home you are purchasing must be your principal residence upon purchase. The definition of a first-time homebuyer is that you have not owned a home anytime in the past three years.

To be eligible for the loan, you must attend a free Homebuyer Education Seminar sponsored by the Washington State Housing Finance Commission and receive a certificate of completion of the seminar. You must also attend a one-on-one pre-purchase counseling session just prior to closing on the home. The seminar and counseling will provide you with the information you will need to purchase and maintain your first home. The online Homebuyer Education will meet the seminar requirement for this program. **Due to COVID-19, classes are only online at this time.

Once you are pre-approved and your lender says you are ready to close on the home, please contact one of the following agencies to schedule an appointment for the one-on-one pre-purchase counseling session at the link below:


Maximum Income Limits (As of June 15, 2022)

Household Size  Maximum Annual Household Income
1 $56,850
2 $65,000
3 $73,100
4 $81,200
5 $87,700
6 $94,200
7 $100,700
8 $107,200


Maximum Purchase Price (as of June 1, 2022)

Construction Type Price
Existing Construction $399,000
New Construction $439,000

No manufactured homes are allowed with this program.

Participating Lenders

View the Premier Participating Loan Officers.

Questions and Application

If you have questions about the Tacoma Down Payment Assistance loan program, please contact Dietrich Schmitz with the Washington State Housing Finance Commission at:

  • (206) 287-4459
  • Toll free at (800) 767-4663, extension 413
  • Email

For inquiries regarding Tacoma down payment assistance loans regarding:

  • Loan Payoff Requests
  • Loan Subordination Needed for Refinancing Purposes
  • Complete a subordination request form

You may contact the Financial Assistant at (253) 591-5059 or email.