Washington VA Home Loans | Zero Down for Veterans

Washington VA Home Loans

Joint Base Lewis-McChord is one of the largest military installations in the country. Add Naval Base Kitsap, Naval Air Station Whidbey Island, and Fairchild outside Spokane, and Washington runs one of the highest concentrations of active-duty and recently separated service members anywhere.

It also has no state income tax and, in the Puget Sound counties, some of the steepest home prices in the country. Zero down with no monthly mortgage insurance is not a nice-to-have in that market. It is usually the only way the file works.

The 2027 Change Most Washington Veterans Haven’t Heard About

This is the single most useful thing on this page, so it goes first.

Washington’s disabled veteran property tax exemption currently requires a VA rating of 80% or higher, or receipt of 100% compensation for a service-connected disability.

Legislation signed in May 2025 (EHB 1106) lowers that threshold from 80% to 40%, effective for taxes levied for collection in 2027 and after.

For the 2026 tax year, 80% still governs. But if you carry a rating between 40% and 79%, you become eligible in 2027 — and a lot of veterans in that band have never looked at the program because they were told they didn’t qualify.

The other half of the test is income. Washington uses a county-specific “Income Threshold 3”: the greater of $40,000 or 70% of that county’s median household income. There is no single statewide number, so it has to be checked county by county.

VA disability compensation and DIC are excluded from the disposable income calculation. That exclusion is why veterans who assume they earn too much often still qualify.

Source: Washington Department of Revenue

Washington Has No State VA Loan Program — Here’s What It Has Instead

Unlike California, Texas, and Oregon, Washington does not run a state veteran mortgage. WDVA does not originate loans.

What exists is the Veterans Downpayment Assistance Loan Program through the Washington State Housing Finance Commission. It is a second mortgage, not a first — 3% interest, payment deferred up to 30 years, used alongside a first mortgage to cover down payment and closing costs.

On a VA purchase with full entitlement you already have zero down, so the DPA program matters mainly for closing costs, or when you’re pairing it with a different first-lien product. It is worth asking about, but it does not replace or compete with your VA entitlement.

Source: WSHFC

VA Loan Limits in Washington

With full entitlement — no active VA loan, no prior VA foreclosure — there is no VA loan limit. The county numbers only bind when your entitlement is partial.

Where they do apply, the Seattle metro counties — King, Pierce, and Snohomish — carry high-cost limits above the national baseline. Pierce County matters most here: it contains JBLM, so the highest concentration of VA purchase activity in the state sits inside a high-cost county.

Where We See Washington VA Volume

• Tacoma, Lakewood, DuPont, Spanaway — the JBLM commuter ring, and the densest VA purchase market in the state
• Kitsap County — Bremerton, Silverdale, Port Orchard — Naval Base Kitsap and the shipyard workforce
• Oak Harbor — NAS Whidbey Island, an isolated market where military demand sets the price
• Spokane — Fairchild AFB, and a price point that still clears on a single income
• Everett — Naval Station Everett plus Snohomish County commuters

VA Purchase Requirements

Guidelines vary by lender. Typical:

• Credit score: 620 minimum on most VA programs; better pricing at 700+
• Down payment: none with full entitlement
• Mortgage insurance: none, at any LTV
• Funding fee: one-time, financeable, waived if you receive compensation for a service-connected disability
• Occupancy: primary residence only
• Certificate of Eligibility: we can pull it, or request it with VA Form 26-1880
• PCS timing: VA allows you to close before you report, within limits. If you have orders, start the file early — Puget Sound inventory does not wait

Related Washington Programs

• Washington Bank Statement Loans — self-employed, 12 or 24 months of deposits
• How VA Refinancing Works — IRRRL and cash-out on an existing VA loan
• VA Jumbo Loans — above conforming, still zero down with full entitlement

Talk Through Your Scenario

Bring your county, price point, entitlement status, and rating. If your rating is between 40% and 79%, ask specifically about the 2027 exemption change — it may be worth planning around.

For illustration only. Not a commitment to lend. Rates and terms subject to change and qualification. 1st Nationwide Mortgage Corporation, NMLS #1281. Equal Housing Lender.