Department of Housing and Community Development

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Home Purchase Rehabilitation Pilot Program

The Home Purchase Rehabilitation Program provides applicants under the DHCD’s suite of Home Purchase Assistance Programs an additional option for becoming first-time homebuyers.

The purpose of the program is to allow first-time homebuyers in the District to purchase homes that require limited repairs to address health, safety and building code violations.  This program enables the use of the Federal Housing Administration’s (FHA) 203(k) Streamline Rehabilitation Program as a first trust lending product, in conjunction with an HPAP or other DHCD purchase assistance second trust loan.  Applicants will receive a combined purchase money loan for acquisition and repairs (limited to the 203(k) guidelines) from the first trust lender.  The HPAP or other DHCD program will be a second trust loan for gap financing and closing cost assistance.  The applicant must meet all DHCD eligibility requirements.

The minimum rehabilitation loan for the FHA 203(k) streamline is $5,000 and the maximum is $35,000.  The limited repairs must be completed within six (6) months of the loan closing date when a Home Quality Inspection (HQI) is due.

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