Buying your first home in Vancouver can feel overwhelming. You want clear answers about loans, down-payment help, and what it takes to get keys in hand. You will find a simple roadmap here, from common mortgage types to Washington programs that can reduce your upfront costs, plus real dollar examples at local price points. Let’s dive in.
First-time loan options
FHA at a glance
FHA loans allow low down payments, typically 3.5 percent if you meet credit guidelines. You will pay an upfront and annual mortgage insurance premium, which can make payments higher than some conventional loans. The tradeoff is easier qualification compared with many other options. Learn the basics on the FHA program through the federal resource at HUD.
What to verify with your lender:
- Current FHA mortgage insurance rules and costs
- Minimum credit score requirements
- Seller contribution limits and appraisal requirements
VA for eligible service members
If you are a veteran, active-duty service member, or an eligible spouse, VA loans often allow 0 percent down with no monthly mortgage insurance. There is a funding fee that can be financed into the loan unless you are exempt. Review eligibility and benefits on the VA home loan page.
What to verify with your lender:
- Your Certificate of Eligibility and entitlement
- Funding fee amount or exemption
- Primary residence and appraisal requirements
Conventional with 3 percent down
Conventional mortgages include first-time buyer options with as little as 3 percent down, such as Fannie Mae HomeReady and Freddie Mac Home Possible. Private mortgage insurance applies below 20 percent down, but it may be cancelable once you reach 20 percent equity. These loans can have stricter credit and income ratio requirements than FHA.
What to verify with your lender:
- Eligibility for HomeReady or Home Possible
- Any income, property type, or geography restrictions
- PMI costs and when you can remove PMI
USDA in eligible areas
USDA loans can offer 0 percent down if both the property and your household income qualify. Eligibility is based on address and county-level income limits. Check program details through USDA Rural Development and confirm property address eligibility with your lender.
What to verify with your lender:
- Whether the specific Clark County address is eligible
- Household income limits and documentation
- Mortgage insurance or guarantee fees
Washington assistance to explore
WSHFC programs overview
The Washington State Housing Finance Commission (WSHFC) offers first mortgages that can be paired with down-payment assistance and, in some cases, a Mortgage Credit Certificate that may reduce federal income tax liability. Program availability, income and purchase-price limits, and lender participation change, so confirm current terms on the WSHFC website or with a participating lender.
Key things to check:
- Program names and current terms
- Income and price caps for Clark County
- Approved participating lenders
Local Vancouver and county options
Cities and counties sometimes use federal HOME or CDBG funds to offer down-payment help through deferred or forgivable second loans or small grants. These usually require homebuyer education. Look for programs administered by the City of Vancouver, Clark County, or local nonprofits, and verify details on official sites. Your lender and agent can help confirm which options can be paired with your first mortgage.
Layering rules and education
You can often layer state or local down-payment assistance with FHA, conventional, VA, or USDA loans, depending on program rules and lender participation. Many programs define a first-time buyer as someone who has not owned a principal residence in the last three years, though some make exceptions. Most down-payment programs require you to complete a homebuyer education course.
Vancouver price examples
Use these simple examples to see how down payments scale at common Clark County price points. Your actual numbers will come from your lender pre-approval.
Entry condo or townhouse, $350,000
- 0% down (VA or USDA if eligible): $0 down, loan $350,000
- 3% down: $10,500 down, loan $339,500
- 3.5% down (FHA): $12,250 down, loan $337,750
- 5% down: $17,500 down, loan $332,500
- 20% down: $70,000 down, loan $280,000
Typical single-family home, $500,000
- 0% down (VA or USDA if eligible): $0 down, loan $500,000
- 3% down: $15,000 down, loan $485,000
- 3.5% down (FHA): $17,500 down, loan $482,500
- 5% down: $25,000 down, loan $475,000
- 20% down: $100,000 down, loan $400,000
Higher-priced home, $700,000
- 3% down: $21,000
- 3.5% down: $24,500
- 5% down: $35,000
- 20% down: $140,000
Keep in mind that down payment is only one part of your cash to close. Plan for closing costs of roughly 2 to 5 percent of the price, plus prepaids for taxes and insurance. Some loan types cap seller credits, so ask your lender what is allowed.
Eligibility and documents
Who typically qualifies
Programs often target first-time buyers, defined by many as not owning a principal residence in the last three years. Income and purchase price limits apply to many state and local programs. Most require the home to be a primary residence, and certain programs have property condition standards.
Documents to gather
- Photo ID and Social Security number
- Last two years of W-2s or 1099s
- Recent pay stubs and employer contact
- Two months of bank statements
- Federal tax returns if self-employed or requested
- Asset statements and gift documentation if applicable
- Rent history or landlord info if requested
- VA documents such as DD214 and COE if applying for a VA loan
Key questions for your lender
Ask these questions early so you can compare options side by side:
- What interest rate and APR can I qualify for today based on my credit and income?
- How much down payment is required and what are total closing costs?
- What mortgage insurance applies, what does it cost, and when can it be removed?
- Are there seller contribution or appraisal requirements for this loan type?
- Which WSHFC or local down-payment programs can be combined with my loan?
- If I use down payment assistance or a Mortgage Credit Certificate, how does that affect my rate and monthly cashflow?
For additional plain-language guidance on mortgages and costs, review the CFPB homebuying resources.
Work with your agent
Your agent helps align your offer strategy with loan requirements and local norms. Discuss seller credits, lender credits, and how to present your offer strongly when using down-payment assistance. Confirm whether the properties you like fit your loan type, especially for condos and for FHA or VA appraisals. Plan timelines for inspection, appraisal, and any documentation needed by assistance providers.
Smart cautions
- Use a lender experienced with WSHFC and local assistance so timelines and paperwork do not surprise you.
- Read second-loan terms carefully. Some are forgivable after a set time, others have interest or recapture rules on resale.
- Expect homebuyer education for most assistance programs. It is brief and helpful.
- FHA and VA can have stricter property condition rules, which can affect negotiation and timing.
Your next steps in Vancouver
- Gather your documents and complete a simple budget check.
- Get pre-approved for FHA and a 3 percent down conventional option, and for VA or USDA if you qualify.
- Ask about WSHFC down-payment assistance and the possibility of an MCC.
- Work with your agent to shortlist properties that fit your loan and timeline.
- Confirm current program terms on the WSHFC site and with a participating lender before making an offer.
If you want hands-on guidance from a local who knows the Vancouver and Clark County market, reach out to Karen Higgins for a friendly, step-by-step plan to become a homeowner.
FAQs
What does first-time buyer mean in Washington?
- Many programs define it as not owning a principal residence in the last three years, but always confirm the exact definition for the program you plan to use.
Can Washington down-payment assistance cover closing costs?
- Some programs allow it, while others limit funds to down payment only. Check each program’s rules with your lender.
Can I combine down-payment assistance with FHA, VA, or USDA loans?
- Often yes, but it depends on the assistance program and lender participation. Verify compatibility before you write an offer.
Will WSHFC assistance change my interest rate?
- Some assistance options come with set rate tiers. Ask your lender how a specific DPA or MCC would affect your rate and monthly payment.
How do I check USDA eligibility for a Clark County home?
- Your lender can run the address, and you can review the program information on USDA Rural Development to understand property and income rules.
