April 13, 2026
Important: Read This Entire Message!
Dear Partners,
Due to the tremendous success of the Covenant program, starting April 20, a pre-reservation process will be required for all borrowers using the program. Please read all the details below and see the FAQs!
Funds Continue – Every Borrower Will Be Served
Covenant funds are not going away — we receive new funds monthly. But with the tremendous success of the program, demand now exceeds the amount of funding allocated each month. Again, new funds are received monthly and every eligible borrower will ultimately receive assistance – but funding may not always be available within the desired timeframe.
This fair and orderly process, developed with input from our partners, ensures every Covenant borrower can move toward closing with confidence.
Important Dates:
Today, April 13:
- Be ready for the new loan reservation portal: Take the training this week because Lender Online ends this Friday.
- Tell your homebuyers and their real-estate professionals to expect a longer timeline. They should not go under contract for a home unless the loan can be locked by close of business Friday, April 17. If the loan is not locked by close of business Friday, April 17, the new pre-reservation process must be followed (details below).
This Friday, April 17:
- Last day for lenders to make Covenant reservations as usual for borrowers currently under contract.
- Last day of Lender Online before the switch to our new loan reservation portal.
- All loans not reserved by close of business on Friday, April 17, must go through the pre-reservation process– no exceptions, even if your borrower is under contract. You will not be able to reserve funds after April 17 without going through the pre-reservation process.
Next Monday, April 20:
- Pre‑reservation process begins. No Covenant reservations will be allowed outside of the pre-reservation process – no exceptions.
- New loan reservation portal replaces Lender Online.
- Start uploading documents (see below) for all Covenant borrowers in your pipeline, even if family history documents have already been accepted by the Commission. Upload links will be viewable on our website starting April 20.
- Do not allow Covenant borrowers to go under contract until they have written authorization from the Commission!
New Covenant Loan Process starting MONDAY April 20:
PLAN – WAIT – GO
Step 1: Plan
Get Acceptance to be Added to the Pre-Reservation List
To be added to the Covenant pre‑reservation list, the lender must upload the following borrower documents to be reviewed and accepted by the Commission – even if previously accepted.
- The loan application
- The approval (1008 form) signed by the lender’s underwriter
- Homebuyer education certificate for each borrower on the note and deed of trust
- The completed Covenant eligibility checklist
- All family history documentation (even if previously submitted)
Submitting these documents does not lock a rate—it simply places the borrower in line for document review.
Step 2: Wait
Watch for the Go-Ahead from the Commission
Once the Commission accepts the submitted documents:
- The lender will receive written notice from the Commission that the borrower has been placed on the pre‑reservation list in the order of acceptance.
- Wait for written authorization from the Commission. Do not allow borrowers to proceed.
- When funding becomes available, the Commission will email a letter to both the borrower and the lender with authorization to proceed.
- Within 3 business days, both the borrower and lender must acknowledge receipt of the authorization letter, or the next eligible borrower will be contacted.
Step 3: GO!
Go Under Contract Within 30 Days
Once both borrower and lender receive and acknowledge the authorization letter:
1. Borrower will have 30 days to:
- Find a home
- Go under contract
- Reserve Covenant funds in the Commission’s online system
2. If the borrower chooses not to proceed or cannot secure a contract within 30 days, they will be moved to the end of the pre‑reservation list and notified again when eligible to move forward.
See FAQs Below and Help Us Help You!
You can make this transition easier for you and for us by fully informing yourself about these changes. Once you read through the FAQs below, don’t hesitate to reach out to us with questions.
The program manual, website and checklists will be updated prior to launch.
Thank you for your partnership!
— WSHFC Homeownership Staff
Covenant Pre-reservation Process
Lender FAQs
Is the Covenant program running out of money?
No, the program will not run out of money. We receive new funds every month through document recording fees. However, due to the program’s growing popularity, the monthly demand for Covenant loans is now outpacing the monthly supply of funds. Every eligible borrower will ultimately receive assistance – but funding may not always be available within the desired timeframe.
Why is this new process necessary?
This fair, transparent, and orderly process is essential because Covenant funds may not always be available to borrowers immediately, even though the program remains financially stable. The pre‑reservation process allows each borrower to shop for a home with confidence once they receive written authorization from the Commission to move forward.
How does the new process work?
- PLAN: STOP! Do not go under contract. The borrower must be accepted by the Commission for the Covenant pre-reservation list. That means we have complete and acceptable eligibility documentation, a homebuyer education certificate for every borrower on the note & deed of trust, and signed loan pre-approval.
- WAIT: Watch your email for the green light from the Commission.
- GO! When the lender and borrower receive the go-ahead, it’s time to go house-hunting! The borrower has 30 days to go under contract for a home.
What should I tell Covenant borrowers who are actively looking for a property (and their real estate professionals)?
You should tell your homebuyers and their real-estate professionals to expect a longer timeline. They should not go under contract for a home unless the loan can be locked by close of business Friday, April 17. If the loan is not locked by then, the new pre-reservation process must be followed – no exceptions.
What if my borrower’s family history was already accepted by the Commission prior to April 17?
All loans not reserved by close of business this Friday, April 17, must go through the pre-reservation process – even if homebuyers already have documents accepted and are looking for a home. The lender will need to upload all documents (even if already accepted — upload the email from the Commission confirming previous acceptance) into the new system and follow the other required steps to get the borrower onto the pre-reservation list.
Once uploaded, the Commission will notify the lender when the documents are acceptable and the borrower is placed on the pre-reservation list.
What happens if the loan officer did not reserve funds by April 17th and the borrower is already under contract?
The lender will not be able to reserve funds – no exceptions. They must immediately upload all the required documents in order for the borrower to be added to the pre-reservation list.
In most cases, the borrower will need to:
- Extend the closing date,
- Use a different downpayment assistance program, or
- Identify a different property in the future.
How does the borrower get on the Covenant pre-reservation list?
The lender must upload the following for Commission review and acceptance. When accepted, the Commission will notify the lender that the borrower has been placed on the pre-reservation list.
- Loan application
- Approval (1008 form) signed by the lender’s underwriter
- Family history documentation
- Homebuyer education certificate for each borrower on the note and deed of trust
- Covenant eligibility checklist
Can I submit the borrower’s family history if I don’t have all the necessary documents?
Yes, but they will not be added to the pre-reservation list until the documentation is reviewed and accepted by the Commission.
What happens once the borrower is on the pre-reservation list?
Once on the Covenant pre-reservation list, WAIT for the letter from the Commission authorizing the borrower to move forward. This authorization must be acknowledged within three days by BOTH the lender and borrower. Then the borrower then has 30 days to find a home, get the offer accepted, and go under contract.
How long will the borrower have to wait after getting on the pre-reservation list?
At this time we are unable to estimate the length of time between placement on the pre-reservation list and authorization to proceed. We hope to be able to provide wait-time estimates in the future as the new process rolls out, though no guarantees.
What if the borrower is not ready to look for a home when it’s their turn?
The lender can postpone if the borrower is not ready. They will be added to the end of the pre-reservation list again, and the next borrower on the list will be offered the opportunity instead.
What if the borrower does not find a home to purchase in 30 days?
If they are not able to go under contract in 30 days, they will be added to the end of the pre-reservation list and notified by the Commission when it is their turn again.
Will the Commission extend the 30‑day window to find a home?
The authorization period can be extended for an additional 30 days for borrowers who are actively house-hunting in good faith and making legitimate offers. We will consider extending when an offer has been rejected or if the transaction falls through.
What happens if the borrower’s offer is rejected during their 30-day authorization period?
If the borrower makes a legitimate offer that is rejected, the authorization period can be extended for an additional 30 days. The lender must upload the offer rejection form into our system. Once verified, the Commission will issue a revised authorization letter with a new date by which the borrower must identify a property and secure a contract.
What happens if the borrower goes under contract, reserves funds, and then the transaction falls through?
If the transaction cancels, the authorization period can be extended for an additional 30 days. The lender must upload a fully executed Letter of Termination of Purchase of Sale into our system. Once verified, the Commission will issue a revised authorization letter with a new date by which the borrower must identify a property and secure a contract.