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By Tyler Thompson · Licensed Real Estate Agent · Updated April 24, 2026

Homebuyer Programs in Bellingham, WA (2026)

Population: 97,270 | Median home price: $600,000 | Est. closing costs: $12,000 - $18,000

Skyline of Bellingham, WA

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

Bellingham Downpayment Assistance Program
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

Covenant Homeownership Program
Type:
Forgivable Loan
Amount:
Up to 20% of the purchase price (or appraised value, if lower), capped at $150,000, plus buyer-paid closing costs
First-time only:
Yes
Home Advantage DPA
Type:
Deferred Loan
Amount:
Up to 5% of the first mortgage loan amount
First-time only:
No
Home Advantage Needs-Based DPA
Type:
Deferred Loan
Amount:
Up to $10,000
First-time only:
No
HomeChoice Down Payment Assistance
Type:
Deferred Loan
Amount:
Up to $15,000
First-time only:
Yes
Opportunity Down Payment Assistance
Type:
Deferred Loan
Amount:
Up to $15,000
First-time only:
Yes
Veterans Down Payment Assistance
Type:
Repayable Loan
Amount:
Up to $10,000
First-time only:
Yes

Federal Programs

FHA Loans
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
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
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
HomeReady Mortgage (Fannie Mae)
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
HUD $100 Down Program
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
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
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

Habitat for Humanity in Whatcom County Homeownership Program
Type:
Zero-Interest Loan
Amount:
Below-market home sale with an affordable, zero-interest Habitat mortgage
First-time only:
Yes
Kulshan Community Land Trust Homeownership
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

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How to Apply

Step 1: 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.

Step 2: 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.

Step 3: Decide your path. Bellingham buyers generally pick one of three directions: (a) buy an open-market home in Bellingham with the $40,000 WSHFC Bellingham DPA stacked on state programs; (b) buy a Kulshan CLT resale-restricted home with up to $75,000 in 0% DPA plus the CLT below-market price; or (c) apply with Habitat for Humanity in Whatcom County for a sweat-equity partnership home.

Step 4: 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.

Step 5: 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.

Step 6: 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.

Step 7: 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.

Frequently Asked Questions

How much down payment assistance can I get in Bellingham?+
Stacks vary widely by path. An open-market buyer can combine up to $40,000 from the WSHFC Bellingham DPA with up to 5% of the mortgage from WSHFC Home Advantage DPA, plus a $10,000-$15,000 state second mortgage (HomeChoice, Opportunity, or Veterans), for $50,000+ in total assistance. A Kulshan CLT buyer can receive up to $75,000 at 0% interest plus a below-market CLT home price. Habitat for Humanity buyers receive a below-market home paired with a 0% interest mortgage — no cash DPA but a substantial lifetime savings.
What is the Bellingham Downpayment Assistance Program?+
Administered by WSHFC for the City of Bellingham, this program provides a deferred second mortgage of up to $40,000 at 3% simple interest for first-time buyers purchasing within Bellingham city limits. No monthly payments are due — the loan is repaid when the home is sold, refinanced, transferred, paid off, or no longer the buyer's primary residence. Borrowers must contribute a minimum of $2,500 or 1% of the purchase price from their own funds. A Kulshan CLT resale-restricted track offers up to $75,000 at 0% interest instead.
How does Kulshan Community Land Trust work?+
Kulshan CLT sells permanently affordable homes below market to income-qualified buyers (at or below 80% of Whatcom County AMI). Buyers own the home while Kulshan retains the land through a 99-year ground lease. At resale, homes are sold at a formula-restricted price to keep them affordable for the next buyer. Minimum credit score is typically 620, debt-to-income capped at 45%, and buyers must live in the home at least 9 months each year. Apply at kulshanclt.org/start-here.
Do I have to be a first-time homebuyer?+
Most Bellingham programs require first-time buyer status, defined as not having owned a home in the past three years. This applies to the WSHFC Bellingham DPA, Kulshan CLT, Habitat for Humanity, WSHFC HomeChoice, and WSHFC Opportunity. WSHFC Home Advantage DPA and Veterans DPA do not require first-time buyer status. Kulshan has limited exceptions documented in its Homebuyer Eligibility Policy.
What homebuyer education is required?+
WSHFC programs require a free WSHFC homebuyer education class (available online or in person) plus one-on-one pre-purchase counseling just prior to closing. Opportunity Council in Bellingham at 360-734-5121 provides HUD-approved housing counseling for Whatcom County. Kulshan CLT runs its own homebuyer education for CLT applicants. Habitat for Humanity provides homebuyer education as part of its partnership process.
Can I use a Housing Choice Voucher to buy in Bellingham?+
The Bellingham Housing Authority and the Housing Authority of Whatcom County jointly administer the Section 8 Housing Choice Voucher program primarily for rental assistance. If you are interested in converting your rental voucher to a homeownership voucher, contact Bellingham Housing Authority directly at bellinghamhousing.org to check current homeownership voucher program availability.

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