Washington’s Covenant Homeownership Program: Expanding Opportunities for More Buyers

Washington’s Covenant Homeownership Program: Expanding Opportunities for More Buyers

Washington state is taking important steps to make homeownership more accessible to individuals and families who have historically faced barriers due to housing discrimination. With the recent passage of HB 1696 in the House, sponsored by Rep. Jamila Taylor (D-Federal Way), the Covenant Homeownership Program is being expanded to help even more Washingtonians achieve the dream of owning a home.

What is the Covenant Homeownership Program?

Established in 2023 through HB 1474, the Covenant Homeownership Program provides down payment and closing cost assistance to first-time homebuyers who have been impacted by historical discrimination. This program is a vital tool in addressing the legacy of exclusion that has kept many Black Americans and people of color from building generational wealth through homeownership.

Since its inception, the program has already helped buyers close on 247 homes across 20 counties, with dozens more loans underway. It’s a clear sign that targeted assistance can make a real difference in expanding homeownership opportunities.

What Does HB 1696 Change?

The new bill, HB 1696, makes key improvements to the program to increase its reach and effectiveness:

• Expanded Income Eligibility: The Area Median Income (AMI) threshold for eligibility has been raised from 100% to 120% of the AMI in the county where the home is located. This means more families with moderate incomes can now qualify.
• Loan Forgiveness: For participants enrolled in a special purpose credit program with household incomes at or below 80% of the county’s AMI, loan forgiveness is authorized after the loan has been outstanding for at least five years. This provides an added layer of financial relief and encouragement for long-term homeownership.

Rep. Taylor emphasizes that homeownership is a critical gateway to building generational wealth and strengthening communities. By expanding access to this program, Washington is taking a meaningful step toward addressing the state’s housing crisis and promoting diversity in homeownership.

Why This Matters to You

If you’re a first-time homebuyer in Washington who has faced challenges due to historical housing discrimination or income limitations, the Covenant Homeownership Program could be a game-changer. With expanded eligibility and new loan forgiveness options, more buyers can receive the financial support needed to overcome upfront costs and secure a home.

How to Learn More and Get Started

Navigating home loan programs can be complex, but you don’t have to do it alone. As part of the Building Dreams Team, I’m here to help you understand your options, determine your eligibility, and connect you with the right resources to make homeownership a reality.

If you’re interested in learning more about the Covenant Homeownership Program or other home loan opportunities in Washington, please reach out to me, Joi Adams, at joi@bdt.place or call +1 206-687-4251. Together, we can explore the best path forward for you and your family.

Delivering the dream of home ownership everywhere!
Joi Adams
Building Dreams Team
https://joi.buildingdreams.team