First-time home buyer programs in Federal Way, Washington — down payment assistance
Federal Way Down Payment Assistance

First-Time Home Buyer Programs & Down Payment Assistance in Federal Way, Washington

First-time home buyer programs in Federal Way, WA come in three shapes: a forgivable second lien with no payment, a repayable second lien that also reaches closing costs, and a refinance-cost option, each paired with a government-backed mortgage and none requiring a first-time buyer.

Current Program Snapshot

Current down payment assistance guidelines, updated from one source.

The snapshot below is not typed onto this page — it is pulled from one down payment assistance guideline source and refreshed when that source changes, so Federal Way, WA always shows the options in force.

Down Payment Help
Up to 5%

Of the purchase price

The largest option is a repayable second lien that covers your down payment and can reach closing costs and prepaids too; the smaller options cover the 3.5% FHA minimum down payment.

Forgivable
3.5%

Covers the whole FHA down payment

No payment and no interest on the assistance: it covers the entire 3.5% FHA minimum down payment and is forgiven after 36 on-time first-mortgage payments.

Income Limit
None

On every option offered here

No income limit on any option offered in Washington — one of the biggest advantages of this program. Earn what you earn; the assistance is sized on the price, not on your income.

Credit
640

Credit score to start

This is the lowest score that opens an option here — the forgivable second liens; the repayable options start a little higher, so a stronger score opens more choices.

Assistance options offered in Washington — how much, what it costs to carry, and the credit it takes
OptionAssistanceWhat you repayCredit · mortgage · units
Forgivable second lien — three-year3.5% of the priceNothing after 36 on-time mortgage payments640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units
Forgivable second lien — five-year3.5% of the priceNothing after 60 on-time mortgage payments640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units
Repayable second lien — thirty-year amortization, ten-year balloon3.5% or 5% of the priceSecond lien, 30-year amortization, balloon in year 10660+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units
Closing-cost repayable second lien3.5% or 5% of the priceSecond lien, 30-year amortization, balloon in year 10660+ · FHA 203(b) · 1–2 units
Refinance-cost second lien (repayable)1% to 3.5% of the balanceSecond lien, repaid660+ · FHA 203(b) · 1–4 units

Current down payment assistance snapshot · updated September 7, 2026 · five options offered in Washington · no option requires a first-time buyer · no option combines with another assistance program · owner-occupied primary residences only.

Program Notice

The figures on this page are program parameters, not offers: assistance percentages, credit floors, unit limits, and forgiveness periods vary by option and by state, and every file is underwritten individually. The calculator estimates an FHA payment at an editable benchmark rate that is not a quote; no fee or lender is stated or implied. Lendmire brokers these loans through its wholesale network in sixteen licensed states, is never the lender, and is not affiliated with FHA, USDA, HUD, or the federal government.

Federal Way Down Payment Assistance Guide

What down payment assistance is — and how the options differ.

The first-time home buyer programs in Federal Way, WA answer the most common reason a qualified buyer does not close — the cash to close — with assistance measured on the price and shaped to the buyer’s situation.

For the program overview, see Lendmire’s down payment assistance program, or the statewide guide at Down Payment Assistance in Washington.

01.

Assistance covers the FHA down payment

In Federal Way, WA, the assistance attaches to the first lien at closing and covers the buyer’s required investment; on the larger option, what remains after the minimum investment goes toward closing costs.

02.

Four shapes: grant, forgivable, repayable, refinance

The options differ in what they cost to carry: forgivable second liens with no interest and no payment, released after an on-time payment period; a repayable second lien with a balloon that reaches closing costs; and a refinance-cost option for an existing FHA loan.

03.

Credit floors, mortgage programs, and unit counts

A Federal Way file is placed by three things — the credit tier, the first-lien program, and the property — and the options table on this page shows the floor, the first liens, and the unit limit for every option offered in Washington.

04.

Eligibility without a first-time-buyer rule

No option requires a first-time buyer, and no option carries an income limit beyond the first lien’s own rules; a Federal Way buyer who has owned before qualifies on credit, first lien, and property alone.

The Core Calculation
Purchase price × the FHA minimum down payment = your down payment; assistance covers it, and the larger option covers closing costs too

This is the whole test: the price sets the minimum investment, the option covers it, and the larger option leaves room for closing costs. The tool below applies it to your numbers and adds the FHA payment estimate.

Federal Way Market Context

Where Federal Way’s first-time and moderate-income buyers shop — and how the assistance fits.

These Federal Way, WA figures describe the market, not a borrower; the first lien’s approval and the option’s rules carry the file, and the numbers here only explain the neighborhood it sits in.

These are context figures, not underwriting inputs. Value and income rarely move at the same pace; the market figures below show how far Federal Way’s prices have moved against its incomes, and the calculator shows what that means for the minimum investment.

99,493Population (ACS 2020–2024)
$552,800Median owner-occupied home value (ACS 2020–2024)
44.7%Households that rent (ACS 2020–2024)
$86,909Median household income (ACS 2020–2024)

Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.

Federal Way Submarkets

Distinct Federal Way submarkets, distinct property rules.

A down payment assistance file in Federal Way reads differently by submarket — condominium approval, association packages, unit counts, and USDA eligibility all shift from one to the next.

01.

Manufactured homes on owned land

For Federal Way buyers choosing manufactured housing, the assistance is available on owned land, with the option set by the home’s width. On a home at Federal Way’s median value, the FHA minimum investment comes to about $19,300 — the figure the assistance is built to cover.

02.

USDA-eligible areas

On Federal Way’s rural edges, the USDA first lien and the second-lien options fit together, keeping cash to close near zero for buyers who qualify. The median owner-occupied home value in Federal Way runs near $552,800 on the latest Census estimate.

03.

Homes that need work

In Federal Way, a buyer can take on a fixer with a limited or standard renovation loan and the assistance attached, so the down payment and the repair budget are settled in one transaction. Median household income in Federal Way sits near $86,909 on the latest Census estimate.

04.

Established neighborhoods

Buyers in Federal Way’s core neighborhoods use the assistance to close the gap between qualifying for the payment and having the cash to close. About 45% of Federal Way’s households rent — roughly 15,960 renter households, the pool the program exists for.

05.

New construction

New construction in and around Federal Way works with the program; the appraisal and the builder’s timeline set the pace, and the assistance closes with the first lien. Median gross rent in Federal Way is about $1,797 a month — the payment many renters already carry.

06.

Two-to-four-unit homes, owner-occupied

A buyer who lives in one unit of a Federal Way duplex can use the program on the whole building; the option that allows up to four units makes the purchase reachable with the minimum investment covered. Federal Way counts a population near 99K.

Submarket descriptions are general market context; the first lien’s approval, the option’s rules, and full underwriting decide every figure in a file.

How Federal Way Buyers Use the Program

Four ways Federal Way buyers put down payment assistance to work.

Down payment assistance in Federal Way, WA is used for more than a first purchase; these are the structures Federal Way buyers ask about most.

Small multi-unit

Buy a two-to-four-unit home and live in one unit

An owner-occupied duplex, triplex, or fourplex in Federal Way qualifies on the option that reaches four units; the buyer lives in one unit and the assistance covers the minimum investment on the whole building.

First purchase

Buy a first home with the down payment covered

The most common Federal Way, WA file: an FHA first lien, the assistance covering the minimum investment, and the buyer’s own funds reserved for moving costs and reserves.

Government mortgages

Pair the assistance with a USDA or HUD-184 mortgage

In USDA-eligible areas around Federal Way, the forgivable and repayable options pair with a no-down-payment first lien and cover closing costs and prepaids instead; HUD-184 first liens pair with the same options.

Closing costs

Cover closing costs too on the larger option

A Federal Way buyer who needs more than the minimum investment uses the repayable option that covers down payment, closing costs, and prepaid items, including costs paid outside closing.

Assistance Sizer

Size the assistance on a Federal Way price before requesting a quote.

This tool applies the program to a Federal Way scenario: the price sets the minimum investment, the option and your cash set the down payment, and the FHA loan, mortgage insurance, and payment follow at the benchmark rate shown. Every field is editable; the rate is a market reference, not a quote.

Editable FHA scenario with assistance

Federal Way FHA payment with assistance

Seeded with Federal Way’s median home value; every field is editable, and the estimate updates as you change the price, the option, your cash, or the rate.

Editable benchmark: 6.71% as of September 3, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.

FHA minimum investment on this price.
Annual mortgage insurance rate applied, and for how long.

Illustrative starting assumptions: a $555,000 price near Federal Way’s median owner-occupied home value (kept where an FHA first lien is realistic), the strongest assistance option offered in Washington applied against the FHA minimum investment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Washington (U.S. Census Bureau). Every field is editable.

Estimated total monthly housing payment
Principal and interest, FHA mortgage insurance, taxes, insurance and dues, on the total loan with the upfront premium financed.
Total down payment (your cash plus assistance)
Assistance applied to the down payment
Assistance left toward closing costs and prepaids
Your cash toward the down payment
Base loan amount
Upfront mortgage insurance premium, financed
Total loan amount
Principal and interest
Monthly FHA mortgage insurance
Taxes, insurance and dues
Housing and total debt ratios (with income entered)
Where the file lands

Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; a repayable second lien adds its own payment, which is not shown here. Consumer mortgage lending licensed in sixteen states. Lendmire is not affiliated with or acting on behalf of FHA, USDA, HUD, or the federal government.

Down Payment Assistance vs. the Alternatives

Same buyer, four very different closings.

Same Federal Way buyer, four closings: assistance on an FHA loan, the buyer’s own minimum investment, assistance on a USDA or HUD-184 loan, or a gift from family.

Structure Comparison

Assistance on a government loan, saving the minimum, or a gift.

FHA with down payment assistance

Assistance paired with the first lien at closing: the minimum investment covered, the shape chosen by credit, first lien, and eligibility category, and the second-lien options open to repeat buyers with no income limit.

FHA with your own minimum investment

The buyer brings the minimum investment from savings, a retirement withdrawal, or seasoned funds; no second lien, no eligibility category, no homebuyer education requirement, and no assistance to carry. For the first lien itself, see Lendmire’s FHA loan program.

USDA or HUD-184 with assistance

USDA and HUD-184 first liens pair with the forgivable and repayable options, which then cover closing costs and prepaids rather than a down payment the first lien does not require. For the USDA first lien, see the USDA loan program.

Where each one fits

Assistance fits the buyer short of cash to close; the plain purchase fits the buyer with savings; the USDA and HUD-184 pairing fits eligible properties and borrowers; a documented gift fits when family can help — Lendmire places the Federal Way, WA file where it reads best.

Typical File Components

What to prepare for a Federal Way scenario review.

A typical starting file for a first purchase with assistance.

Eligibility categoryProof of occupancy intent and the signed assistance application; the options offered in Washington need no eligibility category.
Income documentationPay stubs, W-2s or tax returns, and any fixed income, read against the first lien’s rules; the assistance options themselves set no income limit.
Assistance (second-lien) disclosuresOn the forgivable and repayable options, the second lien is a separate loan with its own loan number and disclosures; the repayable option carries a balloon disclosure.
Credit reportA tri-merge report with a score for every borrower; the option’s floor and the first lien’s rules both apply, and a blended score may apply on the second-lien options.
Purchase contractThe executed contract with the price the assistance is measured on; on a renovation loan, the price before repairs.
Mortgage programFHA, USDA, or HUD-184 — with the county loan limit checked against the price, since only the repayable options carry a high-balance first lien.

This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the mortgage, the assistance option, the property, and the eligibility category. Nothing here is legal or tax advice.

Federal Way File Considerations

Local details that can change the loan.

These are the points a lender reads on a Federal Way assistance file before the option is confirmed; each one can move the structure.

Before You Move Forward

Use these checks to keep the Federal Way file clean and fundable.

A clean Federal Way file starts with the option chosen, the first lien matched to the property, and the homebuyer education course completed where it is required.

  • Know the option: choose by cost to carry first, amount second.
  • Understand the clock: plan a sale or refinance around the release date.
  • Match the first lien: expect the repayable options only on a high-balance first lien.
i.

The option decides what you owe afterward

The same minimum investment can be covered two ways in Federal Way, WA, and the difference is entirely in what happens after closing: nothing if the first lien stays current, or a second loan that comes due; the options table shows what is offered.

ii.

The forgiveness clock on the forgivable options

For a Federal Way, WA buyer, the forgivable options cost nothing to carry as long as the first lien stays current through the period; they are not resubordinated, not assumed, and no additional lien can be added behind them.

iii.

The mortgage and the county loan limit

A Federal Way buyer near the county loan limit should settle the first lien’s size first; a high-balance first lien narrows the options to the repayable ones, and the choice of USDA or HUD-184 narrows them further.

iv.

No stacking with other assistance

A Federal Way buyer eligible for a local or employer program chooses between it and these options; they do not stack, so the comparison is made program against program before the contract is signed.

v.

Property type and unit count select the option

Before the contract is signed on a Federal Way home, the unit count, the condominium status, the manufactured-home width and title, and any association package are checked against the option’s rules.

A Clear Process

From a Federal Way pre-approval to keys with the assistance in place.

Lendmire runs a Federal Way assistance file in a set order: pick the option, match the first lien, clear the property, close both liens together.

i.

Pick the option

The first step is the option: which ones the credit opens, which the first lien allows, and which costs the least to carry for a Federal Way, WA buyer — settled before anything is ordered.

ii.

Get the mortgage approved

Lendmire packages the Federal Way file for the first lien first, because the assistance follows its approval; the option’s floor and the first lien’s rules both have to clear.

iii.

Clear the property

The appraisal, the condominium approval where one applies, the manufactured-home title, and the county loan limit are settled; small repairs go into an escrow holdback where the option allows it.

iv.

Close both loans together

Final underwriting reads the whole Federal Way, WA file against the first lien’s rules and the option’s; the loan funds with the assistance in place and the second lien, where there is one, recorded behind it.

Why Lendmire

A brokerage that pairs the assistance to the loan.

Pairing the right assistance to the right first lien for a Federal Way buyer means knowing which option the credit opens, which the property allows, and what each costs to carry — before the contract is signed.

i.

The option, matched to the buyer

A Federal Way scenario is placed on the right option first — the credit tier, the first lien, and the category — and the rest of the file is then built to fit it, before anything is ordered.

ii.

The mortgage, matched to the property

FHA, USDA, or HUD-184 is chosen with the Federal Way property — its address, its unit count, its type — so the assistance option that pairs with it is the one that attaches.

iii.

The right wholesale program

A Federal Way file is matched to the wholesale program whose option fits the buyer, and Lendmire manages the first lien and the assistance together through closing.

Client Experiences

Trusted by first-time buyers & families alike.

Verified Google Reviews
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Joseph Edwards
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Highly recommend, Cori was awesome to work with and had great communication. She was very helpful and got us through everything to close.
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K Star Real Estate LLC
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Cori on the Lendmire team was phenomenal! She was two steps ahead through the entire process of purchasing an investment property. She was solving problems before anyone knew there could have been a problem. Great communication, great availability, all around a great person to work with. She is the reason our deal closed. We look forward to working with her again in the very near future!
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Tristen Mosley
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Alayna Pack is very knowledgeable, helpful, communicative, and transparent. Highly recommend.
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J Mills
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Leigh is absolutely the best! Professional yet personable, diligent, and incredibly responsive. She was with us throughout the process and helped us secure a competitive rate. Leigh went above and beyond to make sure all of our questions were answered, and offered deep explanations for questions that arose. We felt supported through the entire process and trust her expertise completely. 5 stars!
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Tyjuana Atkinson
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Awesome experience!!!!!!! Leigh had our best interest at heart from beginning to the end.
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Anna Hernandez
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Curt Galbraith was a Great Loan Originator and goes above and beyond for his clients, working with him on this transaction was so easy. I would recommend him for any Buyers looking to Buyer or Refinance. Great Service all around
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RustynKelli Shelton
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Brenda is absolutely one of the most professional hardworking lenders we have ever dealt with; she’s helped clients of ours and now us personally. Her communication is top notch, you never feel like you’re forgotten or left to figure things out on your own, great to answer questions and explain each step. Definitely recommend Brenda to walk along beside you in your purchase process!
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Isaac Alonzo
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As a first time home buyer Curt Galbraith was a wonderful man, he explained everything i had questions about and took time out of his day to meet up late at nights after my night shift, to explain things to me .Over all Curt was really helpful all through closing and always there when you needed him. Thank you so much Curt for helping me through out the whole process.
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Jason Fleck
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Brenda, Samantha and the Lendmire team were absolutely fantastic to work with. We had to jump through some major hurdles to get this home done, which most lenders would have gave up, they kept pushing to get this home done for us. I would absolutely recommend Brenda and team to anybody. Thank you so much for your commitment, communication, perseverance through the whole process. Jason & Brooke
Questions Federal Way Buyers Ask

Federal Way down payment assistance FAQs

Straight answers for Federal Way buyers weighing down payment assistance; the mortgage approval and the option’s rules decide every actual figure.

Do I have to be a first-time homebuyer?

No option requires it. First-time status is not a rule of the program in Washington; the options open on the credit tier, the first-lien program, and the property.

Is there an income limit?

No. The options offered in Washington carry no income limit beyond the first lien’s own rules; a USDA first lien has its own limits, and an FHA or HUD-184 first lien has none.

What first-time home buyer programs are available in Federal Way?

Three shapes paired with a government first lien: forgivable second liens with no interest and no payment, released after an on-time payment period; a repayable second lien with a balloon that also reaches closing costs and prepaids; and a refinance-cost option for an existing FHA loan. The options table on this page shows what is offered in Washington.

Do I have to pay the assistance back?

The forgivable second liens: no interest and no payment, released after the on-time payment period on the first lien, and they pair with FHA, USDA, and HUD-184 first liens. The repayable option is a loan with its own payment.

What credit score do I need?

A Federal Way buyer’s credit tier decides which options are open — the options table on this page shows the floor for every option offered in Washington.

What is the repayable option and when does it make sense?

The repayable second lien covers the minimum investment and closing costs; plan around its balloon and read its disclosures as the loan it is.

Do I need a homebuyer education course?

Not on the options offered in Washington; a HUD-approved homebuyer education course is still worth taking on a first purchase, and some first liens encourage it.

Can I combine this with another assistance program?

One option, one first lien, one closing — no combination with other assistance.

What if my mortgage is above the county loan limit?

Above the county limit, the repayable options carry the assistance; below it, every option is available. The price and the limit are settled before the option is chosen.

What property types are eligible?

A Federal Way home that the first lien accepts and the option’s property rules allow; the property side is checked before the option is confirmed.

Get Started

Place your Federal Way purchase on the right option today.

No credit pull, no commitment: an initial review places your Federal Way purchase on the right option and tells you what to gather.