There is no question that the home buying process can be intimidating, especially in DC. The first step it to understand what you can afford before you begin your search. Luckily, DC has a few programs that make buying your first home a little bit more affordable. Below I breakdown two first time homebuyer assistance programs offered by the DC government: DC Open Doors and Home Purchase Assistance Program (HPAP).
DC Open Doors
DC Open Doors is a down payment assistance program that provides an interest free loan for the minimum downpayment required (the absolute minimum is 3% but this could vary based on your loan product) This means you can close on a property with little cash on hand. Note that you will still need cash for closing costs. You will not be required to payback the loan until one of the following events occurs: 30 years have passed since obtaining your mortgage, you sell your property, your property is no longer your primary residence, or you refinance.
DC Open Doors also offers below market interest rates on your loan.
Buyer Requirements
- First-time or repeat homebuyer.
- Open to both residents and non-residents of DC.
- Minimum credit score of 640.
- Maximum income of $151,200.
- Income is based on BORROWER’s income ONLY (not household.)
- Maximum debt-to-income (DTI) ratio of 50% (max DTI for FHA loan is 45%)
Property Requirements
- Property must be in the District of Columbia.
- Property must be buyers primary residence.
- $548,250 maximum 1st trust loan.
- No maximum sales price limit.
If you want to learn more DCHFA provides free information sessions.
Home Purchase Assistance Program (HPAP)
HPAP provides both downpayment assistance and closing cost assistance. Through the program you can get up to $84,000 in assistance. Assistance is provided in the form of a no interest loan that is you begin repaying after five years. Similar to the DC Open Doors program, the loan is due in full if you sell, refinance, or no longer claim the property as your full time residence.
Buyer Requirements
- Open to first-time homebuyers only.
- Household income must be within the very low-to moderate income level, based on DHCD’s standards.
- Possess a good credit rating.
Property Requirements
- The maximum first trust loan amount cannot exceed the conforming loan limit (currently $453,100 – subject to change without notice)
- The home being purchased must be for the borrower’s primary residence and must be located within the District of Columbia.
If you want to learn more about HPAP, visit DCFHA’s website.
