See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 24, 2026
Homebuyer Programs in Bellingham, WA (2026)
Bellingham sits on Bellingham Bay in northwest Washington's Whatcom County about 90 miles north of Seattle, with a median sale price around $600,000. Bellingham offers one of the most distinctive DPA stacks in the state. The WSHFC-administered Bellingham Downpayment Assistance Program provides up to $40,000 as a 3% deferred second mortgage for buyers within city limits, or up to $75,000 at 0% interest when paired with the Kulshan Community Land Trust track. Kulshan CLT itself sells permanently affordable homes below market to buyers at or below 80% of Whatcom County AMI using a 99-year ground lease model. Habitat for Humanity in Whatcom County serves buyers with household incomes between 30% and 60% of AMI through sweat equity and a 0% mortgage. On top of these local options, Washington State layers Home Advantage DPA (up to 5% of the mortgage) plus HomeChoice, Opportunity, or Veterans second mortgages worth $10,000 to $15,000 each, and the Covenant Homeownership Program for eligible buyers. Combined, a Bellingham buyer can stack $50,000 or more in assistance.
City Programs in Bellingham
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Bellingham Downpayment Assistance Program | Deferred Loan | Up to $40,000 (unrestricted option). An alternative Kulshan CLT resale-restricted option allows up to $75,000 at 0% interest. | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- Up to $40,000 (unrestricted option). An alternative Kulshan CLT resale-restricted option allows up to $75,000 at 0% interest.
- First-time only:
- Yes
State Programs in Washington
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Covenant Homeownership Program | Forgivable Loan | Up to $150,000 (20% down plus closing costs) | Yes | View → |
| Home Advantage DPA | Deferred Loan | Up to 5% of the first mortgage loan amount | No | View → |
| Home Advantage Needs-Based DPA | Deferred Loan | Up to $10,000 | No | View → |
| HomeChoice Down Payment Assistance | Deferred Loan | Up to $15,000 | Yes | View → |
| Opportunity Down Payment Assistance | Deferred Loan | Up to $15,000 | Yes | View → |
| Veterans Down Payment Assistance | Repayable Loan | Up to $10,000 | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $150,000 (20% down plus closing costs)
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to 5% of the first mortgage loan amount
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- Up to $10,000
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- Up to $15,000
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $15,000
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Up to $10,000
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity in Whatcom County Homeownership Program | Zero-Interest Loan | Below-market home sale with an affordable, zero-interest Habitat mortgage | Yes | View → |
| Kulshan Community Land Trust Homeownership | Silent Second Mortgage | Homes sold below market through a community land trust model; long-term affordability maintained via 99-year ground lease. | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Below-market home sale with an affordable, zero-interest Habitat mortgage
- First-time only:
- Yes
- Type:
- Silent Second Mortgage
- Amount:
- Homes sold below market through a community land trust model; long-term affordability maintained via 99-year ground lease.
- First-time only:
- Yes
How to Apply
Check your eligibility. Most Bellingham programs require household income at or below 80% of Whatcom County area median income (AMI), with Habitat's cap set lower at 60% AMI. At 80% AMI, a Whatcom County family of four typically qualifies up to around $75,000-$85,000 — confirm with your lender or counselor.
Complete homebuyer education. The Washington State Housing Finance Commission requires a free WSHFC-sponsored homebuyer education class plus one-on-one pre-purchase counseling just prior to closing. Kulshan Community Land Trust offers its own homebuyer education. Opportunity Council in Bellingham (360-734-5121) is a longtime Whatcom County community action agency and a HUD-approved education provider.
Decide your path. Bellingham buyers generally pick one of three directions
Get pre-approved with a participating lender. For the WSHFC Bellingham DPA, you must use a WSHFC participating lender. Kulshan CLT maintains a short list of approved lending partners. Habitat for Humanity issues its own zero-interest mortgage — no outside lender is required.
Find a home within program limits. WSHFC Bellingham DPA requires the property to be within Bellingham city limits and owner-occupied. Kulshan CLT inventory is limited — call Kulshan at 360-671-5600 to see current homes available. Habitat builds new homes on specific sites as funding and land permit.
Submit your application. Your lender submits the WSHFC second mortgage alongside your first mortgage application. Borrowers must contribute at least $2,500 or 1% of purchase price from their own funds (up to 25% can be gift). Kulshan and Habitat underwrite separately.
Close on your home. DPA funds are applied at closing. Deferred loans carry no monthly payments and are repaid only at sale, refinance, transfer, payoff, or loss of primary-residence status.