Home Rehabilitation Loan Program for Homeowners

Interested in a low-interest home repair loan?

The City of Bellingham’s Home Rehabilitation Loan Program (Home Rehab Program) provides low-interest loans that support qualified homeowners in making repairs to keep their homes safe and livable. Low-to-moderate income households may qualify for low-interest loans that don’t need to be paid back until the home is no longer the homeowner’s primary residence.

The purpose of the program is to:

Assist low- and moderate-income homeowners within Bellingham city limits in the repair or rehabilitation of their homes to safe and livable conditions.
Offer loans that are within a homeowner’s financial capacity.
Improve energy efficiency and conservation of resources, consistent with the City of Bellingham’s Climate Action goals.
Preserve Bellingham’s existing housing stock while providing employment opportunities for local contractors.

Apply Now

Need help with your application? We’re here for you! Contact Housing Programs Specialist Lisa Manos at lmanos@cob.org or 360-778-8391 TTY: 711 (WA State Relay).

To qualify:

You must own the home and occupy it as your primary residence.
You must have a reasonable credit history.
Your home must be within Bellingham city limits.
- You can see if it falls within city limits by inputting your address into the CityIQ search bar and checking that it shows up within the bold boundary drawn on the map. Visit CityIQ.
Your home must be a one- to four-unit residence.
Your household must meet one of the following area median income categories. You can see a breakdown of area median income amounts per household size here.
- Homeowners that are under the age of 62 have a household income less than 60% area median income (AMI).
- Homeowners that are disabled (of any age) that qualify as low or moderate income (income less than 80% AMI).
- Homeowners that are over 62 years of age qualify as low or moderate income (income less than 80% AMI).
- Exceptions to income limits in certain emergency situations may be granted on a case-by-case basis.

Applicants are not eligible if:

They received a Home Rehabilitation Program loan within the past five years. An exception may be approved in the case of an emergency repair.
There is a reverse mortgage on the home.

While there are some additional qualification requirements, the above list covers the basics. Apply today to see if you qualify.

The City provides financial assistance to repair or rehabilitate your home as a loan. Terms depend on the homeowner’s net worth. Net worth will be defined exclusive of retirement accounts. Interest rates will have a minimum 1% and a maximum 5%.

Net Worth $350,000 or below: Those homeowners with a net worth $350,000 or below will be charged 1% interest rate for a 15-year term.
Net Worth above $350,000: Those homeowners with a net worth of more than $350,000 will be charged 1% below the Wall Street Journal Prime Rate for a 15-year term. For example, if the Prime Rate at closing is 3.50%, the loan would then carry a fixed rate of 2.5% for the 15-year term.

All loans are deferred for a period of time – most commonly until the home sells or the homeowner no longer lives in the house. That means loans don’t need to be paid back immediately.

>>To find out how soon a loan will need to be paid back, submit your application and we will let you know.

In addition to providing loans, the program offers the following services:

Inspection to determine needed health, safety and deferred maintenance repairs
Preparation of scope of work
Assistance in contractor selection and contract preparation
Assistance in the construction oversight
Referrals to other agencies for social services beneficial to low- and moderate-income households
Referral of fair housing complaints
Information on lead-based paint hazards

Funding for the Home Rehabilitation Program comes from the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant Program (CDBG).

Each year, the City has set aside funds for the Home Rehabilitation Program (HRP) with the anticipation that funds will be paid back over time. When the funds are paid back, the City is required to invest those funds back into projects or programs that benefit low- and moderate-income households.

>>Learn more about participation requirements, income determination, property eligibility and more.

Pilot Program for Adult Family Home or Childcare

In addition to our standard Home Rehab Program, we are also currently offering a pilot loan program for owner-occupied childcare and adult family homes. This pilot program operates under the same basic parameters as the standard Home Rehab Program, in order to assist participants in meeting licensing requirements for childcare or adult family home certification. Specifically, this program is to:

First and foremost, provide general benefit to the low- and moderate- income residential occupants of the home, which must include the owner-occupant.
Assist property owners within the city limits of Bellingham in the repair or rehabilitation of their homes for health and safety reasons, and to comply with state standards for operation of an in-home childcare facility or adult family home.
Increase the availability of childcare facilities and adult family homes in the community for low- and moderate-income residents.
Offer loans that are within a homeowner’s financial capacity.
Improve energy efficiency and conservation of resources.

>>Learn more about the pilot loan program for owner-occupied childcare and adult family homes.

Contact Us

For questions or more information, please contact Housing Programs Specialist Lisa Manos at lmanos@cob.org or 360-778-8391 TTY: 711 (WA State Relay).