Down Payment Assistance Program Guide

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

Through our DPA Program, eligible buyers receive down payment assistance of up to 20% of the property’s purchase price, for a maximum of $100,000. Buyers under 100% Median Family Income (MFI), may receive additional purchase assistance, up to $10,000. Purchase assistance funds may be used for closing costs or debts like student loans or car notes that can affect a borrower’s debt ratios.

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 5-year interest deferred period with no required monthly payment. At the end of the 5 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.

Buyers can choose a home that suits their family’s needs and finances in the communities they want to live. In addition, 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.