Bellingham Downpayment Assistance

What is 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.

Do you have to pay it back?

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.

Who qualifies?

Bellingham Downpayment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income 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.

What kind of home can it be used for?

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.

Is there eligibility for specific groups?

Bellingham Downpayment Assistance names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native buyers, educators, law enforcement officers, firefighters, healthcare workers, and buyers 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.

Where does it apply?

Bellingham Downpayment Assistance serves buyers purchasing in Bellingham, Washington.

• The program targets specific areas: Property must be located within Bellingham, WA city limits.

How do you apply?

Applications for Bellingham Downpayment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through WSHFC-sponsored Commission-Sponsored Homebuyer Education Seminar (5-hour course, free, available online or in-person).

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Lender reserves via WSHFC's online lender portal alongside first mortgage reservation, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.