DC exhausts funding for low-income homebuyer program 9 months early
The District announced that its homebuyer assistance program is no longer accepting applications as all of its funding has been reserved.
The $26.2 million fund was supposed to last from October 2023 through this September.
D.C. residents with low and moderate income are eligible to apply for the program, which offers interest-free loans and closing cost assistance. Those eligible for the program can access up to $202,000 apiece for home purchases, and $4,000 for closing costs.
Those interested in applying will now need to wait until October when the program re-opens for fiscal year 2025.
In October 2022, the city announced that the program would increase its financial assistance from $80,000 to $202,000.
“We know that homeownership is an important tool for closing racial wealth gaps in our city,” D.C. Mayor Muriel Bowser said in a 2022 release.
Households who make up 50% of the District’s median family income are eligible for the full $202,000, the District said. That money comes in the form of an interest-free loan, which can be used to close the gap between the applicant’s savings and the home’s purchase price.
Other residents who earn between 80 and 110 percent of the city’s median income are permitted to defer mortgage payments for the first five years of home ownership and make principal-only payments for 40 years.
Another housing assistance program in D.C., emergency rental assistance, also reached its limit recently on Jan. 2 when the maximum number of 3,500 people were accepted. Those who still need help paying rent can apply again starting on April 1.
Qualifications for the program include earning less than 40% of the area median income and being at least 30 days behind on rent.