Down Payment Assistance offered by NeighborWorks

Do you or someone you know need help buying a home? We at NeighborWorks of Grays Harbor may be able to help!

For nearly 50 years the volunteer board and our staff of NeighborWorks of Grays Harbor have been committed to providing decent, safe and affordable housing opportunities for the Grays Harbor community.  Most readers might be aware of the subsidized rental units we provide through the Grays Harbor Housing Authority and the Housing Counseling and Education Services available through our office.

In addition to those services, we offer Mortgage Loan and Down Payment Assistance programs that have been available specifically for low- to moderate-income borrowers.  However, these programs have certain restrictions that did not keep up with the rising cost of homes in our area. 

Affordable housing has been a hot button topic in Grays Harbor County, and the state of Washington at-large.  Down payment assistance is just one way to make housing affordable. 

Last summer, NeighborWorks was granted access to a specific amount of money through the Department of Commerce and Housing Trust Fund. A set of rules defined by these state agencies are used to qualify potential borrowers. 

Opening up Down Payment Assistance

The Department of Commerce recently opened up funding for Down Payment Assistance (DPA) to a slightly higher income group than in the past. That means more people can qualify for the program!

Earlier DPA programs restricted household income to 80 percent of the area’s median income.  This was adjusted further by the number of people in a household, which often meant that, even with DPA, the prospective borrower couldn’t borrow enough to purchase a decent house in our market. 

In 2025, the income window was opened up a bit more to include people earning up to 100 percent of the area median income.  Adjustments are still made for household size, but we are finding that this income level combined with the DPA puts these homebuyers back into the market.

Hurray! This is great news for individual homebuyers as well as our whole community.

So just what is this magic income amount?   According to the 2025 Area Median Income for Grays Harbor, a three-person household would earn $85,400 annually to be at 100 percent Area Median Income.  That means that this household may qualify for up to $50,000 in Down Payment Assistance.

Of course, many other considerations go into buying a home.  Things like debt levels and credit history, employment history, owner occupancy and other conditions regarding the property being purchased.

And yes, some money may be required to pay closing costs associated with the loan.  Needing “0” down payment does not mean there are zero costs to purchasing a home.  These can still be 3 to 4 percent of the purchase price so it will be necessary to have some cash saved up before one applies for a loan.

Frequently asked Questions regarding DPA

Q: Is DPA a grant or a loan? 

A: This Down Payment Assistance comes in the form of a loan where payments are deferred until the primary loan is paid off or until the property is refinanced, sold or transferred. The DPA loan would carry a simple interest rate of 2 percent. Since there are no monthly payments required, it does not impact a borrower’s debt-to-income ratios.

Q: Does NeighborWorks make both the primary loan and the DPA loan?

A: In the past, NeighborWorks would make both the primary loan and the DPA loan. However, funding for primary loans is limited, so NeighborWorks is collaborating with local lenders to provide the secondary DPA loan in conjunction with their primary loan.

Q: Does this loan process take longer to complete? In some cases, it can take a bit longer. However, NeighborWorks will work with the borrower prior to them applying for the primary loan. Then, we work closely with the primary lender to share needed documents so the two loans can be approved and closed simultaneously. 

Be sure to ask about Down Payment Assistance

Anyone considering buying a home this year is welcome to talk to us about loan application preparation, pre-qualification counseling, homebuyer education and Down Payment Assistance.

Our housing counselor will be happy to assist in all aspects of the home purchase process and, best of all, there is no charge for this service.

Eric Bjella is the executive director of NeighborWorks of Grays Harbor; a nonprofit organization committed to creating safe and affordable housing opportunities for all residents of Grays Harbor County. For questions about home repair, housing counseling, homebuyer education and financing, call 360-533-7828, listen to the extension picks that will best help you and leave a callback name and number.