DC Open Doors offers down payment assistance loans to DC residents. The program provides up to 3.5% for the down payment, and combined with 97% financing, qualified residents can take advantage of 100% financing! Recently Carisa Stanley, Director of DC Open Doors at the DC Housing Finance Agency (DCHFA), and Alex Jaffe, Loan Officer at First Home Mortgage, stopped by Central Properties to inform our agents about this exciting program.
What sets DC Open Doors apart from other programs is that it is open to borrowers who earn up to a maximum of $123,395 per year (the maximum is only applicable to the individual borrower, it does not include the total household income). Even better, each year the homeowner lives in the property 20% of the down payment loan is forgiven–after 5 years the down payment loan is completely forgiven! The program is even open to repeat homebuyers as well as new buyers, and in all areas of the city.
While there are no purchase limits, there is a $417,000 loan limit for the borrower on both FHA and conventional financing. However, buyers can buy higher priced homes using their own money to cover the gap, and the 3% down payment assistance is based on the total sales price even if it is over the loan cap. DC Open Doors qualifies buyers for reduced Private Mortgage Insurance (PMI) rates, up to 40% off standard rates.
For more information visit the DCHFA website which covers the DC Open Doors Program in detail. While you’re there, you can search for a participating lender (there are now nearly 20 approved lenders, with more being added all the time). If you’re thinking about using the DC Open Doors program, talk to an agent at Central Properties–most are familiar with it, and many have worked with clients who have benefited from this innovative program.
This video by Alex Jaffe, with First Home Mortgage, offers a good summary of the DC Open Doors program:
Written by: Carisa Stanley, DC Open Doors
The information in this post is provided for informational purposes and is subject to change. Please contact the DCHFA and/or a participating mortgage lender for the most up-to-date information on the DC Open Doors program, or for any other program or financial questions.