Washington First-Time Home Buyer Guide

The 2026 lineup runs through the state Housing Finance Commission: Home Advantage (income up to $215,000, no first-time requirement), House Key Opportunity for income-qualified first-time buyers, and specialty DPAs — the Covenant program at up to $150,000, Veterans at up to $10,000, and HomeChoice at up to $15,000. All require a homebuyer education class, which we help you schedule.

No — Home Advantage and its 3–5% DPA are open to repeat buyers as long as the home is your primary residence and your income is within the $215,000 limit. First-time status only matters for House Key Opportunity and the Covenant program — and House Key waives it in targeted areas and for honorably discharged Veterans.

Anyone who hasn't owned and occupied a primary residence in the past three years. Ownership longer ago — or of a home you never lived in — doesn't disqualify you.

The average effective rate is about 0.85% of market value — below the national average — roughly $4,250 a year on a $500,000 home. Counties assess every home at 100% of market value annually, and we include your property's actual figure in your payment estimate.

It caps how much each taxing district's total budget can grow per year — it does NOT cap your individual bill or your home's assessed value. Your assessment tracks market value annually, so your bill can move more or less than 1% depending on your home's value relative to your area.

There's no reassessment-on-sale — assessors already value every home at 100% of market value each year, so buying doesn't trigger a special reassessment. Your purchase price simply becomes evidence for the next annual cycle. (Buyers arriving from California: this works differently than Prop 13.)

At 61+ (or if retired due to disability), homeowners under county income thresholds qualify — in King County for 2026, income under $84,000 earns at least a value freeze and under $60,000 a 60% reduction in taxable value. Thresholds vary by county and are set to expand in 2027.

Buyers typically pay 2–5% of the purchase price — lender fees, escrow, title, appraisal, prepaids — roughly $11,000–$27,500 on a $550,000 home. The seller customarily pays the state's real estate excise tax at closing — though unpaid REET can attach to the property, so escrow confirms it's paid before you take title.

The seller, customarily and by statute — and it's graduated like tax brackets: 1.1% up to $525,000, 1.28% to $1.525 million, 2.75% to $3.025 million, and 3% above, plus a local 0.25–0.50%. Unpaid REET can become a lien on the property, so escrow confirms payment before you take title. The current thresholds are scheduled to inflation-adjust (next window January 2027), so they'll shift by the time you sell.

No — Washington is an escrow state: licensed escrow agents and Limited Practice Officers handle closings. The escrow fee is customarily split between buyer and seller, except on VA loans where the seller pays it in full, and by custom the seller buys your owner's title policy.

$832,750 in most counties — but King, Pierce, and Snohomish get a high-balance limit of $1,063,750 for Seattle-metro prices. Above your county's limit is jumbo territory, which we also offer. It's the loan amount after your down payment that decides, not the price.

$1,063,750 for a single-family home in King, Pierce, and Snohomish counties — identical to the conforming high-balance limit, so FHA's 3.5%-down option covers most Seattle-area price points. Most other counties use the FHA floor of $541,287, and FHA multi-unit limits reach $1,879,850 for an owner-occupied fourplex.

No state income tax on wages — a real budget advantage when sizing a mortgage payment. The trade-offs: property tax around 0.85%, a seller-paid excise tax when you sell, and a 7% tax on large capital gains from stocks and business sales — but real estate sales are explicitly exempt from that capital gains tax.

No — standard policies exclude earthquake damage statewide. Coverage is an optional separate policy or endorsement, typically with a 10–20% deductible of dwelling coverage. It's not required for your mortgage, but worth pricing in western Washington; premiums overall average about $1,500–$1,600 a year, roughly half the national average.

State law requires the condo seller to deliver a resale certificate — the HOA's financials, reserves, budget, and pending assessments — and you have five days after receiving it to cancel with no penalty. The HOA's fee is capped at $275. We review it alongside your loan file, because HOA health affects condo approval.

Yes — since the 2023 statewide law (HB 1337), cities and counties in urban growth areas must allow two accessory dwelling units per residential lot, with no owner-occupancy requirement. We finance homes with existing ADUs on conventional and FHA loans, and projected ADU rent can help qualifying on some programs.