First-time home buyers can get up to $200,000 for down payment in DC
As homeownership costs rise rapidly, the District of Columbia has joined several states in announcing additional financial assistance for low-income buyers.
DC Mayor Muriel E. Bowser announced Monday that the district has more than doubled a grant for down payment assistance, from $80,000 to $202,000, for qualified residents.
Under the district’s Home Purchase Assistance Program (HPAP), applicants may receive funding in the form of interest-free loans based on household income, size and availability of funds . Additionally, homebuyers are eligible for $4,000 in closing cost assistance.
Rising home prices and mortgage costs in the United States have increasingly put homeownership out of reach for many buyers. The cost of a typical monthly bill for a single-family home with a 20% down payment has increased 50% since last year, according to the National Association of Realtors.
To address this gap, several states have also announced additional funding for Installment Assistance Programs:
- Earlier this month, Maryland Governor Larry Hogan increased funding for a unique “SmartBuy” program for low- and middle-income people with student loan debt. It pays off 15% of the purchase price of the house or $50,000 in student debt, whichever is less. To help cover down payments and closing costs, the SmartBuy program also offers an interest-free loan option worth up to 6% of the cost of the mortgage.
- In June, Connecticut Governor Ned Lamont announced the Time to Own homebuyer assistance program, which offers a 10-year interest-free loan worth up to $50,000 in some areas. Eligibility is based on income and ability to repay the mortgage. You must have been a Connecticut resident within the last three years.
- In June, Florida announced a “Hometown Heroes” program offering interest-free loans worth up to $25,000 to frontline community workers in more than 100 eligible occupations, including child care workers. children, law enforcement officers, educators, medical professionals and active military personnel. or veterans. Eligibility is based on income and other factors.
Most states have similar down payment assistance programs for people with low to moderate incomes. Real estate site The Mortgage Reports offers a breakdown of these programs, which are listed by state.
For all other forms of financial assistance for homeowners, the U.S. Department of Housing and Urban Development (HUD) has a list of resources and programs, listed by state. For each state’s page, select “Learn about homeownership” for more information.
Register now: Be smarter about your money and your career with our weekly newsletter
Don’t miss: One of the factors is the “best way to stack the deck” when investing, but many people ignore it.