Buying a home in DC is expensive, more so when you have a very low to moderate income. The Department of Housing and Community Development launched the Home Purchase Assistance Program to ease the burden. HPAP provides interest-free loans to eligible first-time home buyers.
Are You Eligible for HPAP?
If you possess all of these characteristics, yes, you are eligible.
- You are the head of the household
- You have a good credit rating
- The Department of Housing and Community Development considers your salary as very low to moderate
- Three years prior to the application, you had no ownership interest in any kind of real estate
- The property financed is in DC and should be your primary residence
How Much Assistance Will You Receive?
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 $80,000 under HPAP. There is a separate assistance for closing costs of up to $4,000.
The minimum contribution for HPAP recipients is $500. Expect to contribute $500 or 50 percent 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
Loan repayment will vary depending on the recipient’s 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 amortized over a term of 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 prior to 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 ready to buy a home in DC after applying for HPAP get in touch with Community Based Organizations. CBOs will forward your application to the HPAP administrator. The HPAP administrator will determine if you are eligible. You will receive the Notice of Eligibility if you do. This document which outlines the assistance available. If you’re not eligible, check out other housing programs. DC has several programs for home buyers whether it’s your first time to buy a home or not.