valentinosdcpulse

Homeownership in Washington, DC isn't just for the wealthy.  Since 1978, the Home Purchase Assistance Program (HPAP) has offered downpayment and closing cost assistance to low and moderate income DC residents.  When used in conjunction with the $8,000 tax credit and tax abatement programs currently in effect, new homeowners can get settled in an affordable home within the District.

The HPAP is actually a low-interest loan which has the payments deferred for five years.  It can be used for single-family houses, condominiums or cooperative units used as a primary residence.  Participants can qualify for up to $40,000 in downpayment assistance based on their income, credit rating, household size, and assets.  The program does require a good credit rating but reaches out to low-income, elderly, handicapped, and disabled residents.  The borrower needs to contribute $500 or 50% of his liquid assets over $3,000, although many needy residents usually pay no more than $500.  Another condition of the program is that the borrower must maintain the property in line with DC building codes.

The income guidelines of the program are set up so that the less you make, the more assistance you get. Income limits for the program are $58,100 but single person households making between $34,450 - 43,050 are eligible for the most help.

The program is aimed at helping DC residents buy local property but the definition of who qualifies opens it up to those who have worked in the District for a year prior to applying for the program or who have lived there three years as an adult.  This means that young professionals starting out their careers in the District or families who moved away for a time can qualify.  Preference is always given to current DC residents.  The program is open to those who have not owned a home in the past three years.

Chart, Courtesy DC Housing and Community Development

Hopeful participants in the program should call Rachel first! You will want/need a skilled agent to help yo navigate this program. She will sit down over coffee with you and talk about the ins & the outs of this program & the effects on your purchase process. Then, Rachel will assist with your application at one of the following organization:

Housing Counseling Services Inc   2410 17th St NW Washington DC  20009  202/667-7006-108

Marshall Heights Community Development Organization   3939 Benning RD NE Washington DC 20019   202/396-1200

Lydia's House   3939 S Capitol St SE Washington DC 20032   202/373-1050

Latino Economic Development Corp   2316 18th St NW Washington DC 20009   202/588-5102-16

University Legal Services 220 I St NW  St 130  Washington DC 20002  202/547-4747

University Legal Services    3232 Pennsylvania Ave SE St 4 Washington DC 20020  202/547-4747   

 The organization will process the paperwork and forward it to the Greater Washington Urban League, which will approve or deny it.  Once the would-be homeowner has a certificate of eligibility that defines the amount of assistance granted and the price range of the home, he can find a home and proceed through the closing process.

The term of the low-interest loan is 40 years, but the balance is due if the homeowner sells or transfers the property, refinances (except under certain conditions), or does not maintain it as a primary residence.

Developed in 1978, HPAP loans used be as high as $70,000 but budget cuts curtailed them at the end of 2008.  The program was reactivated in January, 2009 with a $40,000 cap.  Funding for the program through 2010 has been supplemented with Federal stimulus funds.

Before looking into this further, you will want a skilled agent to walk you through the HPAP jungle.  Rachel Valentino has helped MANY first time buyers qualify & then navigate the HPAP process with skilled execution. Let Rachel help you find the perfect DC home.