April 13, 2021

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Washington, D.C. First-Time Homebuyer Assistance Programs

If you are Buy your first home and it is in the capital of our nation, get ready for a competitive market. Strong demand for housing has driven real estate prices in the Washington, DC metropolitan area. The average price was over $ 487,000 in January 2021 – an increase of nearly 10 percent year over year, according to Bright MLS Mid-Atlantic multiple listing service. Likewise, prices in nearby Fairfax County and Vienna are as high as they have been in a decade.

To help First time buyer, the District of Columbia Housing Finance Agency has a wide variety of affordable mortgages as well Programs to support down payments and closing costs. Here you can see what options may be available to you.

Initial home loan programs in Washington, DC

DCHFA DC Open Doors program

You don’t necessarily have to be a first-time buyer to apply for the District of Columbia Housing Finance Agency (DCHFA) ​​DC Open Doors mortgage, as long as you don’t already own another property. This mortgage gives you a below-market interest rate and the option of a separate deferred loan to cover your down payment.

To qualify, you must have a minimum credit value of 640 and your individual income (not combined household income) cannot exceed $ 151,200 per year. Other requirements include a debt-to-income ratio of no more than 50 percent (or 45 percent if receiving an FHA loan). There are no home purchase price restrictions, but the loan size is capped at $ 548,250.

DCHFA DC4ME program

Government employees buying their first home can get a discounted rate on a mortgage through the DCHFA’s DC4ME program. The program offers an option to receive 3 percent down payment assistance, which is provided in the form of an additional zero percent loan.

To be eligible, you (or at least one of the loan borrowers) must be a full-time employee of one of the many district government agencies, independent agencies, Columbia District public charter schools, or other organizations approved by the district council. If you are unsure whether your organization qualifies, consult them list the eligible employers.

You must also meet these requirements:

  • Minimum score of 640
  • A maximum of 50 percent debt-to-income ratio
  • No more than $ 151,200 household income
  • The home purchase price is $ 530,000 or less (and the amount borrowed cannot exceed $ 548,250.)

You will also need to complete a homebuyer training class.

Down payment assistance in Washington, DC

DCHFA Home Purchase Assistance Program (HPAP)

DCHFA’s Home Purchase Assistance Program (HPAP) offers first-time buyers up to $ 80,000 for a down payment or closing expense that is packaged as a separate interest-free loan. The amount you will receive depends on your income and the size of your household.

The HPAP loan must be paid back when you sell your home, no longer have a primary residence in the house, or refinance your first mortgage. Depending on your income level, the repayment works as follows:

  • Moderate income: Payments are deferred for five years and then amortized over 40 years
  • Low income: There are no payments due (unless you move out or sell the home or refinance)

Up to $ 4,000 in acquisition grants are available to eligible households under this program.

To qualify, you must be the head of household. have “very” low to moderate incomeas defined by the program; and have a “good credit rating”, according to the agency. In addition, the home you are buying must be your primary residence and be in the district.

Note that HPAP loans will prioritize low-income, elderly, disabled, disabled, or displaced borrowers, as well as borrowers who either already live in the district or have worked in the district for at least a year.

Other Washington, DC homebuyer assistance programs

Mortgage Loan Certificate (MCC)

You can submit an application via the DCHFA Mortgage Loan Certificate (MCC) along with your agency mortgage, which can save you money on your tax bill. In Washington, DC, a customer service center provides a tax credit of up to 20 percent of your annual mortgage interest. To be eligible for credit, you must be purchasing a first time home buyer, veteran, or home in a specific area.

Other first-time buyer loan programs

In addition to the DCFHA programs, Washington, DC residents may be eligible for other widespread programs First time buyer programsB. FHA, VA, and USDA loans that make it easier to buy a home even if you don’t have a 20 percent down payment. Government-sponsored programs like this one can also be easier to qualify than other mortgages, and many mortgage lenders offer them.

Some first-time buyer programs may also include grants, down payment or closing expense support, deferred payments, subsidized interest rates, or after a certain period of time, which can save you further money.

For more Washington, DC home ownership programs, visit HUD.gov.

Getting started

To learn more about first-time buyer programs in Washington, DC, please contact the District of Columbia Housing Finance Agency for more information. The agency has a directory of Mortgage lender Who can help you start the buying process and determine what assistance you might be eligible for?

Make sure to check these out the first time you buy a home in Washington, DC latest mortgage rates and compare available home loan options from a variety of lenders. This can help you get the best mortgage at the lowest cost.

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