WA first-time homebuyer program passes loan milestone as federal probe continues
More than 1,500 loans for first-time homeowners have closed as part of a Washington program currently being investigated by the U.S. Department of Housing and Urban Development.
The Covenant Homeownership Program (CHP), which was designed to address historical housing inequities, launched last July. Its busiest month for closings was April, one month after the Trump administration began its investigation of the program, claiming it illegally discriminates against homebuyers on the basis of race.
CHP offers no-interest downpayment loans and closing assistance to people whose families have historically been shut out of the housing market because of legally binding racial covenants written into property deeds in Washington.
The program was passed by the state Legislature in 2024. In April 2025, the Legislature increased the eligibility income limit from 100% to 120% of the local area median income. Also, homeowners making 80% of AMI or less do not have to pay back their CHP downpayment loans as long as they stay in their homes for at least five years. A HUD assistant secretary called the terms “remarkably generous.”
https://www.bizjournals.com/seattle/news/2026/06/21/covenant-homeownership-loan-closures-hud-probe.html