Is buying a house out of the budget? This Bellingham program can help
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AT WHAT COST?
For more than 20 years, Bellingham and Whatcom County have been listed as among the best places to live because of the climate, environment and culture. But what has that done to the cost of housing? The Bellingham Herald’s series “At What Cost?” examines the price residents are paying for growth.
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With high purchase prices and climbing mortgage rates, buying a home in Whatcom County is getting harder and harder.
A recent analysis found that residents in the Bellingham metropolitan area must work 108 hours a week earning the median annual wage of $46,570 to afford to purchase a home at the median home price of $632,170.
But if you are interested in buying your first home in Bellingham, the city of Bellingham partners with the Washington State Housing Finance Commission to offer a Down Payment Assistance Loan Program that helps low-income residents accomplish the goal.
The program supports low-income, first-time home buyers by providing up to $40,000 in down payment assistance at 3% interest and no required payments on the loan for 30 years.
Of that $40,000, the Housing Finance Commission contributes $15,000 and the city of Bellingham contributes $25,000, which is funded by Federal HOME dollars and the Bellingham Housing Levy, according to program administrator Dietrich Schmitz.
Here are the guidelines:
▪ An interested participant’s household income must not exceed certain limits. A single-person household must not have an income greater than $50,800. A two-person household must not have an income greater than $58,050.
▪ The maximum purchase price of the home must not exceed $451,250. If a participant is purchasing a condominium, its purchase price must not exceed $285,000.
▪ The home must have been unoccupied by a tenant for at least 90 days before the purchase and sale agreement.
▪ The home must be the buyer’s principal residence and be owner-occupied.
▪ The loan does not immediately require monthly payments. The balance of the loan is payable when the borrower sells, refinances or transfers the property, fails to maintain the home as the borrower’s principal residence, or when the home is paid off on or before 30 years after purchasing.
▪ An interested participant in the program is required to attend a free homebuyer education seminar by the Washington State Finance Commission. They must also attend a pre-purchase counseling session with the Kulshan Community Land Trust before closing on the home. The session provides information for purchasing and maintaining it.
▪ The provided funds may be used for a down payment and closing costs. The borrower is required to pay at least $2,500 or 1% of the purchase price, whichever is greater, out of their own money.
If you have questions about the Bellingham Down Payment Assistance Loan Program, you are asked to contact Dietrich Schmitz at 206-287-4459 or by email at dietrich.schmitz@wshfc.org.
Do you have a story to tell about renting, buying or building Whatcom County housing? Reporters Rachel Showalter and Robert Mittendorf invite your comments at newsroom@bellinghamherald.com.
This story was originally published April 21, 2023 at 5:00 AM.
