BellinghamBellingham Downpayment Assistance Loan Program

Disclaimer: The Commission does not endorse a person, business practice, product or service other than those of the Commission.

Bellingham downpayment assistance is a second mortgage loan program that combines with the Home Advantage or House Key Opportunity first mortgage loan program. This program is for people buying within the City of Bellingham limits. This program allows up to $40,000 in downpayment assistance with payments deferred for 30 years, at 3% simple interest.

Due to federal guidelines, the home must not have been occupied by a tenant within 90 days of the purchase and sale agreement.

You must be a first-time homebuyer and the home you are purchasing must be your principal residence and owner-occupied. The definition of a first-time homebuyer is that you have not owned a home anytime in the past three years.

There are no monthly payments, with the balance due and payable when the Borrower(s): 1) sells, refinances, transfers the property; 2) fails to maintain as principal place of residence; or 3) when the home is paid off (on or before 30 years).

You must attend a free Homebuyer Education Seminar sponsored by the Washington State Housing Finance Commission and receive your certificate. You must also attend a one-on-one pre-purchase counseling session just prior to closing. The seminar and counseling will provide you with the information you will need to purchase and maintain your first home.

Once you are pre-approved and your lender says you are ready to close, please contact one of the following agencies to schedule an appointment for the one-on-one pre-purchase counseling session:

Kulshan Community Land Trust 360.671.5600

MAXIMUM INCOME LIMITS as of 06/15/2022

To be eligible for Bellingham Downpayment Assistance, your household income must not exceed these limits:

Household Size
Household Income Limit $50,800 $58,050 $65,300 $72,550 $78,400 $84,200 $90,000 $95,800


Single-Unit (Detached, Attached & Manufactured): $451,250
Condominium: $285,000


Funds may be used for downpayment and closing costs based upon need.
The Borrower’s minimum downpayment requirement is $2500 or 1% of the purchase price, whichever is greater.
Gift funds of up to 25% of the requirement are allowed.


If you have questions about the Bellingham Downpayment Assistance Loan Program, please contact Dietrich Schmitz at 206-287-4459 or toll free at 800-767-4663, Ext. 459, or by e-mail


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