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Nestled between Seattle and the Canadian border, Bellingham, WA, offers a distinctive combination of coastal allure, vibrant culture, and outdoor living. This bustling city continues to attract home buyers of all kinds, including families, young professionals, and remote workers who are exploring affordable alternatives to pricier markets throughout the Pacific Northwest.
This Bellingham home buying guide will walk you through what makes this city a great place to buy, current real estate trends, top neighborhoods, and how to be prepared to make a home purchase in this competitive market.
Bellingham draws home buyers for several key reasons:
Bellingham boasts a diverse array of scenic landmarks that contribute to its natural beauty. Among the more notable features are Mount Baker, San Juan Islands, and North Cascades National Park, giving nature lovers plenty of opportunities to enjoy hiking, mountain biking, kayaking, and skiing.
Bellingham strikes a rare balance of the charm of a small town with the conveniences and walkability of a busy city. Its downtown core is filled with cafes, breweries, and art galleries, but within a short distance are jobs, public transit, hospitals, and a university.
Bellingham boasts a strong economy, supported by sectors like healthcare, manufacturing, higher education, and tech. It’s also a commuter town for remote workers and professionals who regularly travel to Seattle.
Although Bellingham home prices are higher than the state-wide average, the city remains more affordable than nearby alternatives like Seattle or Bellevue. This makes Bellingham particularly attractive to first-time home buyers and downsizing retirees looking for more budget-friendly options without sacrificing quality of life.
The Bellingham real estate market remains competitive and continues to trend upward, though at a more moderate pace than in previous years. Here’s a snapshot of what’s currently happening (as of June 2025):
Home buyers in Bellingham are advised to be well-prepared with a mortgage pre-approval letter and act quickly, as well-priced homes in desirable neighborhoods often receive multiple offers.
Here are the key trends shaping Bellingham’s housing market, based on recent data:
As of June 2025, Bellingham’s mortgage rates are as follows, based on the following variables:
| Rate | APR | Points | |
| 30-Year Fixed | 6.000% | 6.240% | 2.389 |
| 15-Year Fixed | 5.125% | 5.503% | 2.304 |
*Rates fluctuate regularly. Check our rate page frequently for the most up-to-date information.
Each neighborhood in Bellingham has its own unique character. Here are some of the most popular options:
Several loan options are available to home buyers in Bellingham:
| Conventional Loans | Conventional loans are ideal for buyers with strong credit and a sizable down payment. |
| Jumbo Loans | Jumbo loans are best suited for buyers looking in high-cost centers, like Bellevue and Kirkland, where home prices often exceed conforming loan limits. |
| FHA Loans | FHA loans are backed by the government and allow for down payments as low as 3.5%. These loans are ideal for first-time home buyers in Bellingham with limited savings, or borrowers with slightly lower credit scores. |
| VA Loans | VA loans are designed for eligible veterans and require no down payment. |
| Bank Statement Mortgage Loans | Self-employed buyers may find bank statement mortgage loans suitable. These loan programs qualify borrowers based on bank deposits instead of traditional documents, like W-2s or tax returns. |
Navigating Bellingham’s competitive housing market requires practical steps. Consider these tips to help you make a more informed buying decision:
Start the home buying process by getting pre-approved for a mortgage to determine your budget and show sellers that you’re a serious buyer. Work with a local mortgage company in Bellingham, like Sammamish Mortgage, which boasts a team of in-house experts that offer a streamlined and competitive pre-approval process for home buyers in Bellingham.
Team up with a local real estate agent who’s familiar with Bellingham and understands neighborhood trends to help you snag the right home quickly.
Bellingham features homes of all ages, but is particularly known for its older homes that may have hidden issues, such as water damage, foundation cracks, or outdated wiring. Having a professional home inspector scope out the home can help uncover latent issues that may not be noticeable to the average buyer.
Once your offer is accepted, your mortgage lender will finalize your loan. Be prepared to cover all closing costs, which typically range from 2% to 5% of the purchase price.
Yes, while prices are increasing, Bellingham is still more affordable compared to other cities in Washington, like Seattle, Kirkland, or Redmond. Plus, first-timers can take advantage of loan programs like FHA loans as a low-down-payment way to buy a home.
Currently, Bellingham’s average home price is $680,359.
Yes, newly built housing is available in the Cordata district, and an eight-block redevelopment plan in the Old Town District is currently in the works.
Not necessarily, as long as you earn a sufficient income and have the paper trail to prove it. If you work with a lender experienced in self-employed mortgages in Bellingham, like bank statement mortgages or 1099-only loans, you’ll have an easier time securing financing. Sammamish Mortgage can help you get the funding you need as a self-employed borrower to buy a home.
Property taxes in Bellingham average around 1.01% of assessed property value, which is slightly under the national average. However, tax bills vary based on property location and valuation.
Sammamish Mortgage provides live mortgage rates directly on our mortgage rates page. We offer real-time quotes for various loan types, including 30-year fixed, 15-year fixed, jumbo, FHA, and VA loans across Washington, Oregon, Idaho, California, and Colorado.
If you’re looking for natural beauty, community charm, and a balanced cost of living, Bellingham is a great place to buy a home in 2025. However, low inventory and rising demand can make it more challenging if you don’t have the right team behind you. Make sure you’re financially prepared and are partnered with experts who understand the local Bellingham market.
Thinking of home buying in Bellingham, WA, and need a mortgage to finance your purchase? We can help. At Sammamish Mortgage, we’ve been servicing clients all over the Pacific Northwest since 1992, including WA, OR, ID, CA, and CO. Reach out to get an instant rate quote and get the mortgage process started today!
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.