Are the property prices in Washington DC discouraging you from buying a home in the District? The government knows this is a problem, so they’ve prioritized affordable housing options. Now is a better time than ever to pack up your family and head to the city of D.C. There are programs of every type to help buyers get into the house of their dreams. These programs are not just open to low-income residents, anyone meeting the criteria can apply.
If you are looking to buy a home, check out these programs. You might be hiring a moving truck sooner than you thought possible.
EGP also offers weekly home buying webinars where you can learn more about each one of these programs.
Home Purchase Assistance Program
HPAP provides qualified first-time with interest-free loans and assistance in closing costs. Eligible units include condominiums, cooperative units, or single-family houses in DC. Gap financing assistance can be as much as $80,000 with closing cost assistance of up to $40,000. However, the first trust loan should not be more than $514,000. District residents are the priority of this program, but non-residents may apply.
Per the website you must have the following criteria:
To be eligible for the Home Purchase Assistance Program (HPAP), you must meet the following criteria:
- Be the head of the household and a first-time homebuyer.
- Be a very low–to-moderate income resident, based on the Department’s standards.
- Cannot have had an ownership interest in any residential real estate within the three years prior to application.
- The purchased home must be the borrower’s primary residence and must be located within the District of Columbia.
- Possess a good credit rating.
DC Open Doors
This program is ideal not just for first-time homebuyers but also for repeat home buyers. DC Open Doors helps buyers with the down payment by requiring them to apply for a Down Payment Assistance Loan. There is a 20 percent reduction in the loan balance each year for five years until the balance is zero.
DCHFA will pay the borrower’s qualified Down Payment of 3 percent (FHA Plus) to 3.5 percent (HFA Preferred/Advantage). Non-residents can still apply if they meet these requirements:
- A credit score of at least 660
- An annual income of less than $145,560
- The condo or home is in Washington, D.C. and it qualifies financially with a DCHFA approved lender
Mortgage Credit Certificate
Under this program, qualified borrowers can claim 20 percent of the mortgage interest they pay each calendar year as Federal Tax Credit. Mortgage Credit Certificate is open to first-time homebuyers purchasing single-family residences. There is also a maximum sales price and an income limit based on the property’s location and the household size.
Per the website:
- The borrower must be a first-time homebuyer – 3-year rule (except for residences purchased in Targeted Area or Veteran’s utilizing a one-time exception)
- Must include household income in maximum income limits (see additional resources for inclusions/exclusions)
- Income limits and maximum sales price varies based upon household size and location of the property
- Single Family residences only (no 2-4 unit or co-op – see additional resources for more information)
Negotiated Employee Assistance Home Purchase Program
This program is open to government employees covered by a collective bargaining agreement. The amount of assistance may range from $3,000 up to $26,500 depending on the eligible years of service.
Per the website here are the eligibility requirements:
District of Columbia Government employees who are in good standing and whose position is covered by the following collective bargaining agreements are eligible for NEAHP:
- District of Columbia Compensation Units 1 & 2
- Employees represented by the American Federation of State, County, and Municipal Employees; Local 2095 and the American Federation of Government Employees Local 383
- Service Employees International Union 1199
- The District of Columbia Nurses Association
Single Family Residential Rehabilitation Program
This program provides a grant of up to $30,000 for accessibility modifications needed to adjust most physical barriers within a home for persons with mobility or other physical impairments. This helps those with disabilities and mobility issues modify a current or newly purchased home.
Make sure and find an agent willing to work with you to make sure that your new home is eligible for these programs. Reach out today!