DC home purchase financing support

Think the purchase of a home in DC is out of reach? The mortgage products provided by the DC Housing Finance Agency (DCHFA) and the DC Department of Housing and Community Development (DHCD) might just be able to help that dream of home ownership in the city become a reality.

The DC Open Doors program- a program of the DCHFA- and the Home Purchase Assistance Program (HPAP)- a program of DHCD- both provide financial assistance to qualified individuals and families looking to purchase a home in DC. Both programs strive to help boost homeownership among low to moderate income residents of the city and may be of interest to not just first-time buyers.

DC Open Doors

In May of 2013, DCHFA launched it's "DC Open Doors" mortgage products program. Striving to help buyers with good credit who might not have yet been able to save up for a down payment, DC Open Doors provides qualified buyers with down payment loan assistance and home purchase loans. A Down Payment Assistance Loan (DPAL) is currently offered at a 0% interest rate and is non-amortizing, meaning there are no required monthly payments (the loan only becomes repayable if the home is sold, refinanced or no longer serves as the buyer's primary residence). To qualify for DPAL:

• You must earn under $131,040 per year

• You must have a decent to fair Credit Score (660+)

• You must have a Real Estate Agent to help you search for a home & negotiate the transaction.

• You must find a home or condo in Washington, D.C. that you can qualify for financially
  with a DCHFA approved Lender.

• You DO NOT have to currently live in Washington, D.C.

Be aware that some of the DCHFA mortgage products also require a homebuyer education course or class, usually offered twice a month at the DCHFA office.

Home Purchase Assistance Program

HPAP is a DC program that provides interest free loans and closing cost support for those who qualify. Eligible applicants can receive up to $80,000 in gap financing assistance and up to an additional $4,000 for closing costs. 

To be eligible for 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 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

Applications from low-income, elderly, handicapped, disabled or displaced DC residents are prioritized. While non-residents can apply, DC residents will always receive prioritization. Applications from non-residents who have been employed in the District for one year or who have lived in the District for 3 years will also receive prioritization. 

For more information, check out the HPAP website.