Home Purchase Assistance Program

UPDATE

Effective immediately, the Home Purchase Assistance Program (HPAP) is temporarily unable to accept sales contracts as all available funds for down payment and closing cost assistance have been reserved. This includes sales contracts with funds from the Employer Assisted Housing Program (EAHP) and Negotiated Employee Assistance Housing Program (NEAHP).

HPAP NOE holders who already have a ratified sales contract to purchase a home and have a closing date confirmed by their HPAP administrator are still eligible to receive funds for closing. HPAP NOE holders that have not submitted a completed purchase contract before June 23, 2023, will be considered once additional funding becomes available, estimated to be on or about October 1, 2023.

Any HPAP NOE that expires before October 1, 2023 will be extended through December 31, 2023.

The Home Purchase Assistance (HPAP) program provides interest-free loans and closing cost assistance to qualified applicants to purchase single family houses, condominiums, or cooperative units in the District. The loan amount is based on a combination of factors, including income, household size, and the amount of assets that each applicant must commit toward a property’s purchase. The loan is subordinate to a private first trust mortgage.

Eligible applicants can receive a maximum of $202,000 in gap financing assistance and an additional $4,000 in closing cost assistance. The HPAP loan for borrowers with incomes below 80 percent of the median family income (MFI) is deferred until the property is sold, refinanced to take out equity, or is no longer their primary residence. Moderate-income borrowers who earn between 80 percent and 110 percent MFI will have payments deferred for five years with a 40 year principal-only repayment period.

The maximum first trust loan amount cannot exceed the Federal Housing Administration’s (FHA) conventional conforming loan limit.

Areas of Interest: