Down Payment Path

Down Payment Assistance Programs in Washington DC

Washington DC provides several programs to help homebuyers manage the upfront costs of purchasing a home. These initiatives are designed to support both first-time and repeat buyers, making homeownership more attainable in the nation's capital.

Home Purchase Assistance Program (HPAP)

The Home Purchase Assistance Program (HPAP) provides financial support to help buyers cover down payments and closing costs.

  • Offers up to $202,000 in combined assistance for down payments and closing costs based on household income and need.
  • Structured as a deferred payment loan, with repayment terms based on income level.
  • Open to eligible buyers earning up to 120% of the area median income (AMI).

DC Open Doors Program

The DC Open Doors Program provides down payment assistance for moderate- to middle-income buyers.

  • Offers up to 3% or 3.5% of the loan amount as assistance for down payments.
  • Assistance is provided as a deferred loan that is forgivable after five years.
  • Pairs with competitive fixed-rate mortgage options, including FHA, VA, and conventional loans.
  • Designed for buyers earning up to 120% of the AMI.

Negotiated Employee Assistance Home Purchase Program (NEAHP)

The NEAHP is available to DC government employees, offering targeted benefits to help with home purchases.

  • Provides grants of up to $20,000 for down payments and closing costs.
  • Available to full-time employees of the District government purchasing within Washington DC.
  • Does not require repayment if the employee remains in the home for a set period.

USDA Rural Development Loans

For buyers in eligible rural areas near Washington DC, the USDA Rural Development Loan offers financing with no down payment requirement.

  • Open to low- and moderate-income buyers in USDA-designated areas.
  • Features competitive interest rates and flexible credit requirements.
  • Can be combined with HPAP or DC Open Doors assistance programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program provides significant tax benefits for homebuyers, reducing the long-term cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Can be paired with DC homebuyer assistance programs for additional savings.
  • Income and purchase price limits apply but accommodate a wide range of buyers.

Local Assistance Programs

Washington DC also offers additional localized resources for homebuyers through city-funded initiatives.

  • Programs provide grants or low-interest loans for down payments and closing costs, with specific support for first responders, teachers, and low-income households.
  • Eligibility requirements and funding amounts vary by program and buyer profile.

Washington DC’s down payment assistance programs aim to reduce financial barriers and make homeownership more accessible for a diverse range of buyers. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your dream of owning a home in the heart of the nation’s capital.