One of the biggest obstacles first time home buyers face is coming up with the down payment on the loan which can be in the tens of thousands of dollars.
The good news is that there are numerous down payment assistance programs available in the D.C. metro area that provide grants and/or no interest loans to help with down payments. The programs do come with some income restrictions, but the caps have risen steadily over the years making the programs available to a wider segment of buyers.
Here are the most common down payment assistance programs:
- DC Open Doors: D.C. sponsored zero percent interest loan program that offers qualified buyers home purchase loans and down payment assistance. Maximum income limit is $151,200 with a maximum 1st trust loan limit of $548,250. No purchase price limit. D.C. purchases only.
- Employer Assisted Housing Program (EAHP): Offers up to $5,000 matching down payment grant plus a deferred loan of $20,000 for closing costs and down payment. Buyer must be a full time D.C. government employee and for D.C. purchases only.
- Home Purchase Assistance Program (HPAP): $80,000 maximum assistance towards down payment based on family size and income level. Additional closing cost assistance available up to $4,000. Maximum 1st trust loan limit of $510,400. D.C. purchases only.
- Maryland Mortgage Program (MMP): Multiple Maryland programs including grants up to 4% of the loan amount, 0% interest deferred loans up to $25,000, student debt payoff and below market interest options. Maryland purchases only.
- Virginia Housing Development Authority (VHDA): Multiple Virginia programs including grants for down payment and closing cost assistance up to 2.5% of the sales price, 0% interest deferred loans and below market interest options. Virginia purchases only.
Real estate markets are hyper-localized. If you want to know what the market looks like in your neighborhood, reach out and consult one of our Realtors. Or learn more ways for Buyers to get an edge on our Home Buyer Tips Blog.