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Bellingham Downpayment Assistance Program

Administered by: Washington State Housing Finance Commission (WSHFC) / City of Bellingham · City · Deferred Loan

Funding status: Active

How much assistance

Up to $40,000 (unrestricted option). An alternative Kulshan CLT resale-restricted option allows up to $75,000 at 0% interest. (Deferred Loan)

Unrestricted option: Second mortgage at 3% simple interest. No monthly payments for 30 years. Principal and accrued interest due when the home is sold, refinanced, transferred, paid off, or no longer the primary residence. Kulshan CLT option: 0% interest with long-term resale restrictions.

Eligibility

  • Income limits: Must be at or below WSHFC Home Advantage or House Key Opportunity income limits. Limits vary annually — confirm with a participating lender.
  • First-time buyer required: Yes — Buyer has not owned a home in the last three years.
  • Geographic restrictions: Property must be located within Bellingham city limits and serve as the buyer's primary residence (owner-occupied).
  • Homebuyer education required: Yes

How to Apply for Bellingham Downpayment Assistance Program

Step 1: Layers on top of a WSHFC Home Advantage or House Key Opportunity first mortgage. Borrower must contribute a minimum down payment of $2,500 or 1% of purchase price (whichever is greater). Up to 25% of that minimum can be gift funds. Work with a participating WSHFC lender and complete a free WSHFC homebuyer education class plus one-on-one pre-purchase counseling.

Notes

Two separate tracks exist: an unrestricted $40,000 option and a Kulshan CLT resale-restricted $75,000 at 0% option. Ask your lender which track fits your situation. Verify current funding availability with WSHFC before closing.

Cities Where This Program Is Available