The Low Down on HPAP

You’d be surprised how many programs there are in the District of Columbia available to first time homebuyers. Many of these programs, however, are administered by different offices or non-profits and may be hard to navigate, thus making the whole process more overwhelming, stressful and complicated than it already is. Luckily, with a little research, a few phone calls, effort and of course, my expertise you can do it and together, we can find you the ideal home at the ideal price.

One of these programs is HPAP.

HPAP stands for Housing Purchase Assistance Program. This program is specific to District residents that are buying a home for the first time, and has specific requirements to qualify – both income and in some cases special locations – aka economic development zones.

Let's do some math so this all makes a little sense: [see example here].

With HPAP, depending on family size and total household income (in this case under $51,000 for an individual), borrowers can receive up to $77,00 in the form of a 0% interest loan with a life of 35 years of which, the first five years are deferred. Essentially, free money. After those first five years, the monthly payments on a loan of $77,000 would be $213.89. Note that there is a stipulation that the loan must be repaid if you sell the property.

The process for this is grueling and I recommend starting it at least six months before you wish to begin the process. There is a general information session, then you are required to set up an appointment with a counselor where your budget goes under the microscope and is scrutinized to each penny and each latte. Luckily, on these loans there is a 0% default rate. Additionally, this is what is characterized as “character based lending” where good people get houses they can afford.

A similar program is the housing assistance program is available for DC government employees, DC police officers and DC public school teachers. This program provides these qualifying individuals up to a $10,000 grant (note: grants do not need to be repaid).

Some of the organizations throughout the District that provide help are listed [here].

Be sure to research, and if you have any questions, do not hesitate to ask – I am here to help you find the home of your dreams!