First-Time Homebuyers Can Now Get Up to $200,000 for a Down Payment in D.C.—See If You Qualify for Similar Programs in Your State
Amid rapidly growing homeownership costs, the District of Columbia has joined several states in announcing additional funding assistance for low-income homebuyers.
D.C. Mayor Muriel E. Bowser announced Monday that the District has more than doubled a subsidy for down payment assistance, up from $80,000 to $202,000, for qualified residents.
As part of the District's Home Purchase Assistance Program (HPAP), applicants can receive funding as interest-free loans based on a household's income, size and availability of funds. Additionally, homebuyers can qualify for $4,000 in closing cost assistance.
Rising home prices and mortgage costs in the U.S. 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 by 50% since last year, according to the National Association of Realtors.
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To bridge that gap, several states have also announced additional funding for down payment assistance programs:
- Earlier this month, Maryland Governor Larry Hogan boosted funding for a unique "SmartBuy" program for low- and moderate-income earners with student loan debt. It either pays off 15% of the home purchase price or $50,000 in student debt — whichever is lower. To help cover down payments and closing costs, the SmartBuy program also offers a zero-interest loan option worth up to 6% of the mortgage cost.
- In June, Connecticut Governor Ned Lamont announced the home buyer assistance program Time to Own, which offers a 10-year interest-free loan worth up to $50,000 in select areas. Eligibility is based on income and ability to pay off the mortgage. You must have been a resident of Connecticut for the past three years.
- In June, Florida announced a "Hometown Heroes" program offering zero-interest loans worth up to $25,000 for frontline community workers in more than 100 eligible professions, including child-care employees, law enforcement officers, educators, health-care professionals and active military or veterans. Eligibility is based on income and other factors.
Most states have similar down payment assistance programs for low- to moderate-income earners. Real estate site The Mortgage Reports offers a breakdown these programs, which are listed by state.
Money Report
For all other forms of homeowner financial assistance, the United States 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.
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