Home Purchase Assistance Program

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, and HPAP does not accept seller-backed mortgage financing.

HPAP Funds Availability

This dashboard will share the amount of Home Purchase Assistance Program (HPAP) funds that are available for Fiscal Year 2025 which begins on October 1, 2024. Given the high demand and limited availability of funds, DHCD will award HPAP loans through a lottery process which will provide more certainty to home purchasers during the buying process as they select their homes, financing options, and other advisory services.

The HPAP Lottery is a process through which current HPAP Notice of Eligibility (NOE) holders will be randomly selected to receive a Notice to Proceed (NTP) for purchasing a home with HPAP assistance. This Notice to Proceed is a six (6) month commitment from the date of notification where funds will be reserved for the NOE holder. The six (6) month timeframe allows the NOE holder to complete the home selection, closing, and purchase process. Please read our Frequently Asked Questions (FAQ) for more details on the lottery process and other details.

If you have not yet applied for HPAP or received a Notice of Eligibility, or have any other questions, please contact your Housing Counselor or visit Eligibility/How to Apply for more information.

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.

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