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The DC Department of Housing and Community Development has programs for low-to-moderate income homebuyers and government employees.
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The DC Department of Housing and Community Development has programs for first-time homebuyers.
In Washington, DC, you may also be eligible for financial assistance if you’re a government employee.
Depending on which program you apply for, you might be offered a loan and a grant.
Read Insider’s comprehensive guide to purchasing your first home.
The Department of Housing and Community Development and DC Housing Finance Agency will be your two top resources for financial assistance and guidance if you’re a first-time homebuyer in Washington, DC.
Read below for a brief run-down of the two government agencies and their programs.
Department of Housing and Community Development
The Department of Housing and Community Development primarily runs programs for low-to-moderate income first-time homebuyers and government employees.
If you need help to pay for an FHA mortgage or conventional home loan, see if you’re eligible for one of the agency’s following programs.
Employer Assisted Housing Program
The Employer Assisted Housing Program is for government employees who want to buy a home or condominium in Washington, DC.
The program has several loan and grant options depending on your job.
For all government employees, the program offers a 0% interest loan of up to $20,000 and a matching funds grant of up to $5,000. With a matching funds grant, the program provides a certain dollar amount and you must match that amount. Government employees can use the funds to help pay for down payment and closing costs.
If you’re a first responder or educator, you also may receive a recoverable grant of up to $10,000 and matching funds grant of up to $15,000 that can go toward your down payment. These grants require a five-year service obligation, which means you’ll have to keep your home for at least five years and meet the terms listed in the agreement. Otherwise, your forgivable grant will turn into a 0% interest loan.
To receive any of the program’s grants or loans, the following requirements will need to be fulfilled:
You haven’t owned a home in the District in the last three yearsYou’ve worked as a District government employee for at least one year and were in good standing
If you’re a first responder or teacher at a public school, you’ll be able to waive the second requirement.
Home Purchase Assistance Program
The Home Purchase Assistance Program is in coordination with the DC Housing Finance Agency and offers financial assistance to low-to-moderate income first-time homebuyers. You may receive up to $202,000 of your mortgage as a loan. To help cover closing costs, you also might be able to get an additional $4,000 in a 0% interest loan.
How to determine if you’re eligible for the Home Purchase Assistance Program
Below, you’ll see the maximum household income requirements for the Home Purchase Assistance Program as of October 1, 2022, according to the Department of Housing and Community Development. The maximum financial assistance offered varies depending on household size and total family income.
Maximum financial assistanceMaximum household income for 1 personMaximum household Income for family of 2Maximum household income for family of 3Maximum household income for family of 4Maximum household income for family of 5Maximum household income for family of 6$202,000$49,800$56,900$64,050$71,150$76,850$84,550$161,600$63,850$72,950$82,100$91,200$96,900$102,600$141,400$68,450$78,200$88,000$97,750$103,850$109,950$101,000$79,700$91,100$102,450$113,850$120,950$128100$80,800$97,600$111,550$125,500$139,450$148,150$148,150$70,000$109,600$125,250$140,900$156,550$166,350$166,350
Negotiated Employee Assistance Home Purchase Program
If you’re a government employee who’s part of a union, you also may be accepted into the Negotiated Employee Assistance Home Purchase Program. The following organizations are currently included in the program:
District of Columbia Compensation Units 1 and 2American Federation of State, County, and Municipal Employees Local 2095American Federation of Government Employees Local 383Service Employees International Union 1199The District of Columbia Nurses Association
Through the Negotiated Employee Assistance Home Purchase Program, you might be able to get anywhere from $3,000 to $26,5000 in a forgivable grant. The amount received will be determined by how many years you’ve worked as a government employee. This grant also has a 10-year service obligation, so your loan is forgiven in 10 years if you meet the obligations included in your loan.
How to apply for a Department of Housing and Community Development program
If you’d like to apply for one or multiple programs, reach out to a community-based non-profit organization on the list. Note that you’ll be required to go to an orientation, attend a homebuyer education course, and schedule an appointment to fill out the application.
DC Housing Finance Agency
The DC Housing Finance Agency serves Washington, DC homebuyers and homeowners. In contrast to the Department of Housing and Community Development, you don’t need to be a first-time homebuyer to be a part of most programs.
You might like one of the DC Housing Finance Agency’s programs if you’re a repeat homebuyer or if you need financial assistance to pay for your first mortgage.
DC Open Doors
Through the DC Open Doors program, the DC Housing Finance Agency offers a 0% interest Down Payment Assistance Loan to potential homebuyers.
You don’t have to be a first-time homebuyer to be a part of the DC Open Doors program. However, you will need to meet the following requirements:
You have a minimum credit score of 640You have an income that’s no more than $154,800 (This is your individual income, not household income)You have a debt-to-income ratio of 50% or lower (If you plan to get an FHA loan, you’ll need a DTI under 45%)Your loan amount is $647,200 or less
DC 4ME
DC 4ME helps governments employees buy a first home with a low interest mortgage. You may also receive 3% of your mortgage as a loan.
Only employees who work at government agencies on this list are accepted into the program. You also will need to meet the following criteria:
You have a maximum household income that is under 120% of the area median incomeYou need a loan that doesn’t exceed $548,250You plan to buy a home with a sales price that doesn’t exceed $565,300You have a credit score of at least 640You have a debt-to-income ratio that’s under 50% You plan to take a homebuyer’s education course
How to apply for a DC Housing Finance Agency program
If you’re interested in learning more about the DC Housing Finance Agency, several information sessions are held online in webinar format.
To apply for the program and be considered for a loan, look for a lender on the list here. Participating lenders will walk through the homebuying process and determine whether you might be considered for an agency’s programs.