Bellingham Downpayment Assistance

Bellingham Downpayment Assistance is a deferred second loan for homebuyers in Bellingham, Washington. The Bellingham Downpayment Assistance program provides up to $40,000 to first-time homebuyers purchasing a primary residence within Bellingham city limits. It is structured as a deferred 3% simple interest second mortgage administered by WSHFC for the City of Bellingham, paired with a WSHFC first mortgage. Up to $40,000 in down payment and closing cost assistance for first-time homebuyers purchasing within the Bellingham city limits. City of Bellingham-funded second mortgage administered by WSHFC. Structured as a deferred-payment loan at 3% simple interest with no monthly payments. principal and accrued interest due at sale, refinance, or transfer. Must be paired with a WSHFC first mortgage (Home Advantage or House Key Opportunity). Funding comes from City of Bellingham housing funds; administered by WSHFC.

Bellingham Downpayment Assistance is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by Due upon sale, refinance, transfer of title, or when property is no longer the borrower's primary residence. The assistance is recorded in 2nd Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Bellingham Downpayment Assistance is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time homebuyer required (no ownership interest in a principal residence in prior 3 years); waived in IRS-designated target areas if using House Key Opportunity. On credit, the program states: 620 minimum FICO; varies by underlying first mortgage product. A homebuyer education course is required, through WSHFC-sponsored Commission-Sponsored Homebuyer Education Seminar (5-hour course, free, available online or in-person). Residency requirement: Property must be located within Bellingham, WA city limits and occupied as primary residence. Citizenship or immigration status: U.S. citizen or qualified non-citizen per agency loan-product guidelines. Property must be located within Bellingham city limits (Whatcom County). First-time homebuyer required (no ownership interest in principal residence in prior 3 years). Must complete WSHFC Commission-Sponsored Homebuyer Education Seminar. Must be paired with WSHFC Home Advantage or House Key Opportunity first mortgage. Sales price and income limits depend on which first-mortgage product is used (Home Advantage limits are higher than House Key Opportunity bond limits).

Bellingham Downpayment Assistance limits household income to 80% of the area median income, which varies by county and household size. Income limits range from approximately $60,700 (House Key Opportunity, 1-2 person, Whatcom non-target) to $114,450 (Home Advantage, Whatcom County). Limits depend on which first mortgage program is used. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Bellingham Downpayment Assistance caps the purchase price at $667,850. Eligible property types include Single-family detached, townhomes, condos (agency-approved), PUDs and manufactured housing per agency guidelines. New construction is eligible. Manufactured homes are eligible.

Bellingham Downpayment Assistance names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native homebuyers, educators, law enforcement officers, firefighters, healthcare workers, and homebuyers with disabilities among the groups it serves. Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Bellingham Downpayment Assistance serves homebuyers purchasing in Bellingham, Washington. The program targets specific areas: Property must be located within Bellingham, WA city limits.

Applications for Bellingham Downpayment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Lender reserves via WSHFC's online lender portal alongside first mortgage reservation. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.