Real Estate

4 Buyer-Friendly Changes to DC’s “Home Purchase Assistance Program”

The DC Mayor’s office has released more official changes to DC’s popular Home Purchase Assistance Program (HPAP). They have already increased the maximum amount of Down Payment Assistance the program will give you to $80,000 (from last year’s $50,000).

There are 3 more changes besides the increase in Down Payment funds:

  1. The overall budget for the HPAP program has been increased to $16 million (a 50% increase over last year). The increased funds will be used to allow about 75 more qualified households to use the HPAP program for their home purchase. 226 households used the program in 2016 – the goal is 300 in 2017.
  2. Revised repayment terms are in effect. HPAP gives you Down Payment assistance that is structured as a deferred loan for 5 years. After 5 years, your mortgage payments increase due to paying back the deferred down payment loan. For the new year, the deferment terms are different and more buyer-friendly. If you earn an income below 80% or the Area Media Income (AMI), your loan will be deferred until the home is sold, refinanced, or is no longer your primary residence. If you earn between 80% and 110% AMI, your payments will be deferred for 5 years with a 40 year principal-only repayment period.
  3. Streamlined processing. HPAP has added a 2nd administration team; the program is now administered by the DC Housing Finance Agency and the Greater Washington Urban League.

“The HPAP program can seem daunting and complicated to those new to it,” said Gerard DiRuggiero, Principal Broker of UrbanLand Company. “Our agents are well-versed in HPAP and have taken numerous buyers this year through the process successfully. Ask us about HPAP in our Home Buyer Workshops or one-on-one! We’re happy to help you.”

Here’s our upcoming Free Workshops calendar. Join us Tuesday nights and Saturday morning through December and January!

We also offer an online HPAP assistance portal where you can pre-enroll for help and check your eligibility. Check it out here.



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