Cash Windfall for DC Homebuyers

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All things real estate, neighborhoods, industry, market trends and EDGY living.

DC's Home Purchase Assistance Program (HPAP) Tripled the Benefits

Effective August 2022, DC homebuyers may qualify for $70,000 and up to $202,000 in down-payment assistance with an additional $4,000 closing cost help. This is incredible and advantageous, especially in our high-priced DC real estate market.  While there are income limits, they are liberal and even a 2 person household can earn up to $125,000 and still be eligible for up to $70,000 in assistance. Benefits of the program: Deferred loan, repaid interest free as long as you live in the property If you earn less than 80% of the AMI (Area Median Income) no payments ever, just pay back the loan when you sell or move out Borrowers earning more than 80% of the AMI must pay back the principal divided over 40 years starting in year 6  Minimum borrower contribution can be as low as $500 Some qualifying factors: Borrower must not have owned real estate for prior 3 years anywhere Must be owner-occupied/principal residence Household size and income max apply for qualifying purposes (see chart below)  HPAP proposed housing payment benefit must fall between 28% - 40% of borrower’s gross monthly income

Pro Tips for successful HPAP borrowers: Highly recommended that you work with a primary lender who knows the program and its administrators (I can provide you names) Go through the hurdles and have the “HPAP Notice of Eligibility” in hand prior to house shopping House/condo condition is utmost importance – recommend new construction or newly renovated for a smoother process Submit offers on properties that are not competitive as sellers will choose other buyers over HPAP financing buyers b/c of potential delays and less predictability  Expect 45+ day from contract to close Must be able to follow the process exactly as instructed, document submission, home buyer education, counseling, budgeting, etc  Must be patient with the process – this is a DC government entity so expect some amount of nonsense Keep in mind this is not a good program if you intend to turn the property into a rental as that would trigger a repayment of the HPAP funds in full This is a big deal and a great program for DC first-time homebuyers. Since the maximum benefit amount has tripled this year to $202,000, you should expect that the demand for the program will be much higher and anticipate delays both getting through the process and also receiving the funding for closing. There is a potential for funding to run out toward the end of the fiscal year (September 2023) so if you qualify for this and plan to buy in 2022 or 2023, I recommend you get started now.  Please visit this LINK for more details on the program. And contact me so I may connect you with one of my recommended lenders to learn if this is a good program for you.

Announcement! Please help me welcome my new assistant, MAXWELL! He is maybe 5 years old, comes from the south (Georgia), gets along with the cats, and loves to cuddle. His ears have been described as sassy. I am in the process of getting his DNA tested but I don’t have the results yet. I think he is partial poodle or at least that was the key word search.

Maxwell may accompany me on some appointments so be on the lookout. Perhaps you thought I was only a cat person and I do skew that way, but I work for them not vice versa.

Upcoming Events

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Good to Know... Where to discard certain trash – rubbish – garbage – obsolete stuff? You may or may not know this but not all garbage should or can go in the household trash or recycling. I am always trying to find the proper places to discard unwanted / broken / obsolete / or worn out items. Here are some easy places that will properly dispose of these items. Batteries / Eyeglasses / natural corks – Mom’s Organic Market Lightbulbs – some can go in regular trash and others can be recycled at The Home Depot and Lowe’s Stores Electronics – Best Buy Paint (DC only) - Paint Care Please share with me other suggestions you may have.

Client Corner

As most of you know, I am a Returned Peace Corps Volunteer (RPCV) and I am still connected to the RPCV community here in DC. Many of my clients are also RPCV’s so the invasion on Ukraine is personal. There are so many ways to help and I reached out to some past clients who were RPCV’s in Ukraine to provide a few recommended charities. Thank you Sasha Shimazu, Becky Bosshart & Sheila Crowley for these recommendations: Free Ukraine (aggregate info by cause) Sunflower of Peace Friends of Ukraine RI Migrant Offshore Aid Station United Help Ukraine Razom for Ukraine The Jewish Federation of Greater Washington Ukraine Fund Please consider supporting any of these great causes or others that you find worthwhile. The situation is an ongoing heartbreaking tragedy.

If you are doing something fabulous that you would like to appear in this section in future issues, please send me the details!

Thanks for reading! I would love your feedback on anything you would like to know more about and definitely your passion projects or anything cool or edgy you have going on that I may highlight. I hope everyone has a great month and remember the universe has your back! HAPPY FALL!