Prospective homebuyers in Washington, D.C., can now receive more than $200,000 to help with their mortgage down payments, marking the latest effort by the city government to incentivize district residents to purchase homes.
When the new fiscal year begins on Oct. 1, the maximum down payment D.C. residents can receive through the district’s Home Purchase Assistance Program will raise to $202,000, a massive increase from the $80,000 previously available through the program. Those eligible for the program can receive funds to help with purchasing single-family homes, condominiums, or cooperative housing units located in the district.
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“We know that homeownership is an important tool for closing racial wealth gaps in our city. We also know that for people without generational wealth, the idea of becoming and staying a homeowner can be daunting,” said D.C. Mayor Muriel Bowser. “But we have programs and resources in our city that can open doors that people may not have even thought possible. One way we can keep more Washingtonians in D.C. is by making sure our neighbors know about these programs and are using them.”
The size of each loan is based on income, household size, and the number of assets each applicant can commit toward the desired property’s purchase, according to the mayor’s office. In addition to the down payment assistance, eligible residents can also apply for up to $4,000 in closing cost assistance.
The city government will also seek to help current homeowners keep up with their mortgage and bill payments to protect them after the district’s foreclosure moratorium expires on Sept. 30. To help with increasing housing costs, Bowser announced the creation of the Homeowner Assistance Fund in June to assist struggling homeowners.
When the moratorium expires at the end of next month, foreclosure proceedings will be permitted to resume unless homeowners establish an outside form of financial assistance or have an application under review. Through HAF, eligible residents can apply for grants to pay for expenses such as utilities, insurance, internet assistance, and housing association fees, according to the mayor’s office.
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“When we say the district is not only helping people obtain homeownership, but also maintain homeownership, we mean it,” said Drew Hubbard, interim director of the Department of Housing and Community Development. “And to help you on your way and as evidence of our commitment, we’ve got a network of community-based organizations to help. So, call on us wherever you are on your homeownership journey.”
The district’s budget for the next fiscal year makes a number of other investments in housing programs, including offering legal services to assist heirs in maintaining their family property after the primary homeowner dies, increasing funds to help low-income homeowners repair their houses, and investing funds into repairing homes against weatherization and other damage.
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