Home Purchase Programs

Asked by Fungirl, Washington, DC Mon Jan 2, 2012

Does anyone know if their are any home purchase programs comeing in 2012 to help with down payment/closeing help for Washington, DC resident. Looking to purchase in DC

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David Branch, Agent, Washington, DC
Mon Jan 2, 2012
Definitely one of the best programs in the country in terms of the level of support is DC's HPAP program. It can give up to $40,000 in down payment assistance, plus up to another $4000 in closing cost help. Like most programs of this sort, it is designed for low and moderate income households. A 2-person household would qualify on a sliding scale from incomes of $41,400 up to almost $70,000. Bigger households can make more, a 1-person household can make less. You have to get counseling from one of 5 intake centers, take an 8-hour homebuyer education course, and do a little homework. It is administered by the Greater Washington Urban League. You can get more info at http://www.gwul.org under Housing and Community Development.

If you are a District of Columbia employee, there is a program called EAHP. It gives up to $10,000 in down payment and closing cost assistance. This program is also administered by the Greater Washington Urban league. It is not income based, but you still have to do counseling and the homebuyer education class.

There is a similar program for certain union employees in the District.

DC also has a 5-year tax abatement program. Naturally it is income based. If you qualify, you will not have to pay property taxes for 5 years begining the next October 1 (it's a little quirky). In addition, it has the effect of reducing your closing costs. The 1.1% in recordation fees that you would normally pay the government, you get to keep. Plus the 1.1% in transfer fees that the seller would pay the city, can go to you instead. For anywhere in the city, a 1-person household qualifies if you make less than $56,820 a year (currently). A few areas will let you go up to $63,745 a year. Again, bigger households can make more.

DC also had a $5000 first-time homebuyer credit, given by the federal government, which expired on 12/31/11. No word yet on whether it will be extended.

There was also a DC bond program that had a $10,000 closing cost help component. This program is currently suspended.

Many lenders have programs with reduced down payments and/or closing costs. For instance, BB&T has it's CHIP program, which offers 100% financing for qualified buyers. And Wells Fargo/Prosperity Mortgage has their CDMP program, which offers 2% down payment and no mortgage insurance premiums. Hope this helps.
Web Reference:  http://www.gwul.org
2 votes
Natalie Dean, Agent, ANNAPOLIS, MD
Wed Jan 4, 2012
Hi Fungirl:

Since many of the programs can be area driven or price driven it can be advantageous to see whether you can find your choice of home meeting those two sets of criteria. If you would like to receive auto search meeting your specific housing needs please contact me. Its free and it doesn't take anything from you but 5 minutes of your time detailing your needs. We are here to serve and we look forward to helping you Find Your Home of Choice.

Best Wishes!

Natalie Dean
0 votes
brent mendel…, Mortgage Broker Or Lender, Bethesda, MD
Tue Jan 3, 2012
David gave you some great information. I am doing some HPAP now and also one called NEP that is even MORE money than HPAP. It's only in certain areas of the city though. FHLB is also one I use alot and it depends on your income but also where you wish to live. FHLB is gone until I have heard February and when it does come back will be reduced to 5,000. I will be posting a blog when the funds are restored. If you would like me to email a flyer out to you on FHLB let me know. Hoped this was helpful.

Brent Mendelson
Senior Loan Officer
Monarch Mortgage
600 Jefferson Plaza, Suite 400
Rockville, MD 20852
240-403-1970 Direct
301-412-0259 Cell
0 votes
James Ryan, Mortgage Broker Or Lender, Leesburg, VA
Tue Jan 3, 2012
The FHLB of Atlanta also offers a down payment matching grant, forgiven after 5 years. It is a 4 to 1 match of your downpayment or closing fees, if you put up $1875, they match you to $7500. It has income limitations and credit score requirements, but is a wonderful program.

Jim, American Bank
703 615 4675
0 votes
William Pani…, Agent, Washington, DC
Mon Jan 2, 2012
May I suggest you contact the Housing Counseling Services at 2410 17th Street, NW; (202)667-7006. They will inform you about any home buying programs available to you. They will also educate you about the process, home ownership, and other important matters.
0 votes
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