Are the property prices in D.C. discouraging you from buying a home in the District? The government knows this problem, so they prioritized affordable housing. Now is a better time than ever to pack up your family and head to the city of D.C. You’re sure to find whatever kind of housing you’re looking for. These programs are not just open to the lowest income residents. If you are looking to buy a home, check out these programs. You might buy the home of your dreams sooner than expected.
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 $417,000. District residents are the priority of this program, but non-residents may apply.
First-Time Homebuyer Tax Benefit
The First-Time Homebuyer Tax Benefit reduces the recordation tax from 1.45 to 0.725 percent for qualified homebuyers. General qualifications are as follows:
- You are a DC resident, or you intend to buy the property to live in the district
- The property’s purchase price does not exceed $625,000, adjusted annually for inflation.
- Your total earnings are not more than 180 percent of the Area Median Income
DC Open Doors
This program is ideal not just for first time home buyers 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:
- Credit score of at least 660
- An annual income of less than $140,640
- 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.
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.
Home Purchase Rehabilitation Program
HPRP is for first-time homeowners who want to purchase a property requiring limited repairs to address building code violations, health and safety concerns. The borrower can use FHA’s 203(k) loan in conjunction with the Home Purchase Assistance Program. The Greater Washington Urban League administers this program. Borrowers can receive between $5,000 to $35,000 for repairs.
Ultimately, find an agent willing to work with you to make sure that your new home is eligible for these programs. Reach out today!