Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in Washington D.C.
The DC Housing Finance Agency established the Home Purchase Assistance Program (“HPAP”) to assist first-time homebuyers in purchasing a home in the District. It provides gap financing to help pay the necessary funds to buy the house.
This programme is quite similar to the first-time homebuyer assistance programs in Virginia.
HPAP offers qualified borrowers a down payment and closing costs assistance as a zero-interest, deferred loan. This loan is available to first-time homebuyers in District who are in very low- and moderate-income levels. Buyers are given assistance based on their household income, financial need, and the availability of funds. Then, for closing costs assistance, $4,000 is maximum amount provided, and $80,000 for down payment assistance.
The Home Purchase Assistance Program requires applicants to have good credit ratings, and no residential real estate ownership in the three years prior to applying. Then, applicants must buy a home in the District that they must use as their primary residence. HPAP offers assistance to first-time homebuyers who earn up to 110% of the area median income (AMI). It also has a maximum income limit.
The Secretary of the U.S. Department of Housing and Urban Development established the area median income for the Washington, DC metro area. These income limits were based upon it.