Are you dreaming of buying a home in the heart of Washington, DC? Well, it’s no secret that the nation’s capital is one of the most expensive cities in the United States, making it challenging for people in the lower to the middle-income bracket to purchase a home. The high cost of living and skyrocketing housing prices make it challenging to find affordable options but don’t lose hope just yet.
As real estate professionals who understand the struggle of wanting to own a home in an expensive city, we empathize with those who are trying to navigate the competitive real estate market in Washington, DC. It can be a discouraging and frustrating experience, especially when you feel like you’re stuck in a financial rut.
However, there is good news! The Home Purchase Assistance Program (HPAP) is designed to help first-time homebuyers who meet certain income and credit requirements. This program provides financial assistance to help with the down payment and closing costs, making homeownership more achievable for those who may not have been able to afford it otherwise.
So, if you’re struggling to find an affordable home in Washington, DC, know that resources are available to help you achieve your dream of homeownership. The Home Purchase Assistance Program could be your helping hand to make it a reality.
Are You Eligible for HPAP?
The Home Purchase Assistance Program (HPAP) in Washington, DC, is a helpful resource for those who want to purchase a home in the city but may not have the financial means to do so on their own. Here are the eligibility requirements for the HPAP:
- Applicants must be first-time homebuyers or have not owned a home in the last three years.
- Applicants must have a household income at or below 80% of the Washington, DC, median income.
- Applicants must have a good credit history and a stable source of income.
- Applicants must contribute at least $500 or 0.5% of the purchase price (whichever is greater) towards the down payment and closing costs.
- The purchased property must be located within the District of Columbia and be the applicant’s primary residence.
How Much Assistance Will You Receive?
The big question on everyone’s mind is: How much will I get from HPAP? Gap financing assistance through HPAP will depend on these factors:
- Household income
- Household Size
- Fund Availability
- Demonstrated need
Eligible households can receive as much as $202,000 under HPAP. There is separate assistance for closing costs of up to $4,000.
HPAP Contribution: Will I have to Contribute Any Money?
The minimum contribution for HPAP recipients is $500. Expect to contribute $500 or 50% of your liquid assets over $3,000, whichever is greater.
The Director may waive contributions exceeding $500 for displaced, disabled, elderly, or handicapped applicants with low and very low-income.
Repayment Terms Vary Based on Your Income Bracket
The loan repayment will vary depending on your income bracket:
Low and very low-income recipients will have no monthly payments. For moderate-income households, payments are deferred in the first five years. Monthly payments start in the sixth year and are amortized over 40 years.
In the following cases, the entire loan amount becomes immediately due and demandable:
- The borrower transfers the property
- The property is no longer the primary residence of the borrower
- The refinancing of the property violates HPAP’s conditions
Yes, Some Applicants Will Get Priority
District of Columbia residents and non-residents can apply for HPAP. However, district residents will get priority based on this order.
- Disabled, displaced, elderly, handicapped, and low-income District residents
- Other DC residents eligible for HPAP
- Non-residents employed in DC at least one year before the application
- Non-residents who lived in DC as an adult for three consecutive years
HPAP will only process applications by non-residents when there is no pending application from a resident.
How to Apply for HPAP
If you’re interested to see if you qualify, attend one of our free, no-obligation webinars to see if you qualify. And if you don’t qualify, there are other government programs to help you. Just register and find out today who we can help you.