Down Payment Assistance Program Guide

The Problem

Saving enough money to afford a sufficient down payment and to cover closing costs is a persistent barrier to homeownership. Prospective buyers need extensive savings or affordable financial assistance to become homeowners in high-cost markets like Washington, DC. The majority of Black and Latino communities are priced out of the market.

The Solution

Through our DPA Program, eligible buyers may obtain a down payment assistance loan up to 20% of the property’s purchase price, after any grant funds have been applied, for a maximum loan amount of $60,000.

How it Works

We partner with first-trust mortgage lenders to issue a second-trust mortgage for down payment assistance. The interest rate is set at that of the first trust mortgage minus 2%. Program participants receive a five-year interest deferred period with no required monthly payment. At the end of the five-year period, borrowers begin making monthly principal and interest payments for the remaining 25 years or until the property is sold, refinanced, or the note matures, at which time the balance of the down payment and closing cost assistance is repaid in full. The deferred interest is repaid as a balloon payment when the property is sold, refinanced or the loan matures.

Buyers can choose a home that suits their family’s needs and finances in the communities they want to live. In addition, many clients avoid paying Private Mortgage Insurance (PMI) on their first trust mortgage loan. As a result, clients gain a more affordable first-trust mortgage and can purchase a home much sooner than expected.

Read our DPA Program Guide   DPA Program Guide

Why Homes by CFE?

Supportive Process

Homes by CFE works with its partners in lending and homeownership counseling to ensure borrowers know what to expect at all stages of the purchasing process. In addition, our staff works with borrowers to discuss how Homes by CFE can help them purchase a home where their families can thrive.

Knowledgeable Staff

Our team includes dedicated mortgage professionals with expertise in supporting disinvested communities. In addition, each of our NMLS-licensed loan officers is committed to serving our borrowers with patience, respect, and dignity.

Legacy in Affordable Housing

Homes by CFE and its parent organization, City First Enterprises, have a deep history and mission of expanding economic opportunity to underserved populations. Since 2010, we have helped buyers afford homes in DC neighborhoods they love. The new DPA Program is the next step in achieving equitable, thriving communities.

The Process

First Trust Lender Submits your Homes by CFE Referral Application

The process starts once HBCFE receives a Lender Referral Form from your first trust lender. We will review those details and contact you on the next steps in applying for a down payment assistance loan.

HBCFE Orientation

We’ll schedule a program orientation, which lasts about 30-45 minutes. During this conversation, we’ll present the program terms to ensure you fully understand the eligibility requirements, application process, and how repayment works. This is mandatory, provides transparency, and allows borrowers to ask questions.

After that meeting, we will send you a Pre-Approval Letter and Release of Information Form to complete so we can use the documents you’re sharing with your first trust lender for your HBCFE loan application.

Loan Application

We will work with you and your first trust lender to complete the loan application by collecting all the supporting documentation for underwriting. We will then send you the HBCFE program application to review and sign.

Underwriting

When a loan is in the underwriting phase, we will evaluate your financial background to qualify you for the HBCFE DPA loan. This involves reviewing your application and documents, checking your credit history, verifying your income and employment, analyzing your debts, and appraising the property. Based on this information, we will approve, deny, or request more details to make a final decision. This process can take a few days. If approved, a Conditional Approval Letter will be provided along with the Closing Cost Disclosure for review and signature.

Closing

We coordinate with your first trust lender and the title company to prepare your HBCFE loan for closing. Your loan funds (less our underwriting fee) are sent directly to escrow for closing.

Post Closing

Shortly after you close on your new home, our servicing team will contact you to provide additional disclosures and your loan portal details.

Are you mortgage ready?

Determine your eligibility and how to apply for assistance

Homes by CFE – Program Eligibility

City First Homes (CFH), dba Homes by CFE (HBCFE), is an Equal-Opportunity Housing assistance provider that does not discriminate on the basis of handicap, race, color, national origin, religion, sex, marital status, or age. Successful applicants for Homes by CFE must meet all eligibility requirements. CFH is a Nonprofit, Exempt, Mission-Based 501c3 Organization.
All information contained herein is for informational purposes only. Rates, terms, programs, and underwriting policies are subject to change without notice. This is not an offer to extend credit or a commitment to lend. All down payment assistance loans are subject to underwriting approval. NMLS #1503997