Area homebuyer assistance programs alive and well

In addition, the U.S. Treasury Department announced a new housing program in October that will bolster the coffers of state housing finance agencies to provide mortgage assistance for low- and moderate-income families.

“We’re very pleased,” said Susan Dewey, executive director of the Virginia Housing and Development Authority. “The initiative recognizes that HFAs have consistently carried out our mission using sophisticated financing and sound underwriting standards to provide sustainable, affordable housing. We’ve held true to the basic financial concepts — our borrowing matched our lending.”

HFAs around the area have received their funding amounts for 2010 and are moving forward with optimism.

“The city of Alexandria just received a $7.7 million allocation of funding from VHDA to support first-time homeownership programs,” said Shane Cochrane, division chief of the Office of Housing Program Implementation. “That funding is available through June 30, 2010.”

Cochrane said that money will be used to complement the city’s down payment and closing cost assistance programs — the Homeownership Assistance Program and the Moderate Income Homeownership Program.

In Montgomery County, the Housing Opportunities Commission received $20 million for single family homeownership and applauds the new Treasury program.

“The Treasury is giving us some relief,” said Tom DeBrine, manager of single family homeownership for HOC. “[HFAs] ended up suffering because the whole thing collapsed. We don’t make problem loans. Our loans require substantial documentation.” Demand has been moderate, he said, about $1 million a week.

The nation’s capital is also getting into the act.

The D.C. Department of Housing and Community Development runs the District’s Home Purchase Assistance Program. HPAP provides interest-free loans to qualified residents, which enables them to purchase houses, condominiums or cooperatives in the District of Columbia.

Applicants who qualify for the program are eligible to receive up to $40,000 for down payment assistance and up to $4,000 in closing cost assistance.

Additionally, D.C. government employees may apply for additional assistance under the Employer Assisted Housing Program. Under EAHP, those city employees who are first-time homebuyers in Washington are eligible to receive a matching down payment grant of up to $1,500 and a deferred loan of up to $10,000.

“In [fiscal] 2009, 320 households in the District of Columbia received HPAP and/or EAHP funding from DHCD,” said Angelita Colon-Francia, senior public information officer for DHCD. “Applications for both HPAP and EAHP are being accepted for [fiscal] 2010.”

AVAILABLE PROGRAMS

DISTRICT OF COLUMBIA

Department of Housing and Community Development

Web site: http://www.dhcd.dc.gov

Phone: 202-442-7200


Home Purchase Assistance Program: Provides deferred-payment loans of up to $40,000 toward home purchase. Borrowers must contribute at least $500 though that can be waived in special cases.

Employer-Assisted Housing Program: Provides up to $1,500 in matching payment funds and a deferred loan of up to $10,000.



Eligibility for these programs varies widely. For more details on requirements, incomes limits and procedures contact the following organizations:

Housing Counseling Service Inc: 202-667-7006

Latino Economic Development Corp.: 202-588-5102

Lydia’s House: 202-373-1050

University Legal Services, NE: 202-547-4747

University Legal Services, SE: 202-645-7175

MARYLAND

Community Development Administration

Maryland Department of Housing and Community Development

Phone: 410-514-7530 or 800-638-7781

Web site: http://www.dhcd.state.md.us

Down Payment Settlement Expense Loan Program: Helps eligible borrowers purchase a home by funding up to $5,000 for closing costs, with no interest.

House Keys 4 Employees: Gives potentially more down payment and closing cost assistance than the Down Payment Settlement Expense Loan Program. Borrowers who receive a contribution from eligible state employers receive matching funds of up to $5,000.


Live Near Your Work Plus: Premium-priced first mortgage program that offers a first mortgage (at a slightly higher interest rate than More House 4 Less program) that provides borrowers who are purchasing a home within 25 miles of their place of employment with a 3 percent closing cost assistance grant.

Maryland Mortgage Program: For first-time buyers purchasing property in a targeted area MMP provides slightly higher-priced mortgages that include a 2 percent or 3 percent grant to be used for  closing costs. Money can also be used for down payments on non-FHA loans. The grant does not have to be paid back and a 40-year mortgage s offered as an option. Home price and income limits apply and vary by county.

MONTGOMERY COUNTY

 Housing Opportunities Commission

Phone: 301-929-6700

Web site: http://www.hocmc.org


Mortgage Purchase Program: Offers below-market mortgage financing to the general public for purchasing a first home in the county. All loans have income requirements and no points. There are fixed-rate and step-rate loans available.

Closing Cost Assistance Loan: Offers 5 percent closing cost assistance up to $10,000 with a 5 percent interest rate. At least one borrower must be working in Montgomery County.

Housing Choice Voucher Homeownership Program: Commission selects eligible families randomly from those who are qualified for housing voucher rental assistance. Money that would otherwise be used for rent is used to cover ownership costs.

Housing Opportunities Commission Homeownership Program: Designed to prepare and assist those living in Housing Opportunity Commission homes to become homeowners.

Homeownership Assistant Loan Fund and Closing Cost Assistance Loan: Assists residents of Housing Opportunity Commission homes with loans for closing costs up to $3,000 at an interest rate of 4.5 percent, 5.5 percent or 6.5 percent.

PRINCE GEORGE’S COUNTY

Department of Housing and Community Development

Phone: 301-883-5570

Web site: http://www.co.pg.md.us/Government/AgencyIndex/HCD

American Dream Downpayment Initiative: Federally funded program provides down payment and closing cost assistance to low-income families who are first-time home buyers.

Home Buyer Advantage Program: Fixed-rate and adjustable mortgages available with optional second mortgage to cover closing costs requiring a minimum contribution for as low as $500 from the borrower. Home buyer education classes are required. Rates and repayment terms vary.

Housing Choice Voucher Home Ownership Program: Participants in the county’s rental program in good standing who make a minimum income of $26,000 (no income requirements for those 62 and older) are eligible for mortgage payment assistance on a sliding scale based on income.

VIRGINIA

Virginia Housing Development Authority

Phone: 877-VHDA-123

Web site: http://www.vhda.com

The Virginia Housing Development Authority is the state’s mortgage finance agency. Each year the authority allocates money through specific programs to the various jurisdictions. The cities and counties tailor local programs to meet local needs.

Sponsoring Partnerships and Revitalizing Communities: Provides loans to potential home buyers through local governments, nonprofit organizations, developers and redevelopment and housing authorities. The state allocates money annually to cities and counties for programs that meet specific local needs. Qualified recipients receive interest rates of up to 1 percent below VHDA loan rates.

HomeStride: Provides a second mortgage of up to $25,000 with no payments and no interest for the first three years; payments from year four to year 30 are at a 5 percent rate.


VHDA Conventional Fixed: Offers a below-market VHDA fixed-rate loan with low fixed payments, no down payment and loan amounts of up to 103 percent of the sales price.

Federal Housing Administration Insured Loans: Provides below-market VHDA fixed-rate loans with low fixed payments and a 3 percent down payment.


FHA Plus: Offers an FHA-insured fixed-rate first mortgage with a second loan to assist with down payment and closing costs.

1st Choice Interest Only: Applicants with good credit and stable employment can qualify for no down payment and no mortgage insurance on a 30-year fixed-rate mortgage with interest-only payments for seven years and principal payments starting in the eighth year.


VHDA Step Rate Loans: Provides VHDA reduced-rate loans for borrowers who expect their incomes to increase. These loans offer lower initial payments, which increase in the second and third years, and require no down payment.

Flex Alt 100: Offers loans with no down payment and no mortgage insurance, which means lower monthly payments and less upfront cash required.

Flex Alt Advantage: Variant of the Flex Alt 100 offers financing of up to 104 percent of the sales price to assist with payment of closing costs and points.

ALEXANDRIA

Office of Housing Program Implementation Division

Phone: 703-838-4622

Web site: http://alexandriava.gov/city/housing

The City of Alexandria has several programs to assist residents and employees buying within the city limits. Special assistance is also available for city police officers, teachers and other public employees.

Moderate Income Purchase Assistance Program: Provides qualified first-time homebuyers with up to up to 25 percent of the purchase price of a home through a deferred-payment, no interest loan. Income limits apply and the maximum home price is $362,790. The loan can be used to help pay closing costs.

Virginia Housing Development Authority (VHDA) Low Interest Mortgage Program:

Provides below market mortgages to first time homebuyers on loans up to $408,100.

Notification List for Affordable Properties: those whose names are on the list may be given and opportunity, awarded at random, to buy homes built or renovated with county assistance and offered at below-market prices.

ARLINGTON COUNTY

Community Planning, Housing, and Development Director

Phone: 703-228-3786

Web site: http://www.arlingtonva.us/departments/CPHD/housing/housing_info/CPHDHousingHousing_infoHomebuyers.aspx

Moderate Income Purchase Assistance Program: Provides qualified first-time homebuyers with up to 25 percent of the purchase price of a home through a deferred-payment, no interest loan. Income limits apply and the maximum home price is $362,790. The loan can be used to help pay closing costs.

Virginia Housing Development Authority (VHDA) Low Interest Mortgage Program: Provides below market mortgages to first time homebuyers on loans of up to $408,100.


Notification List for Affordable Properties: those whose names are on the list may be given the opportunity, awarded at random, to buy homes built or renovated with county assistance.

FAIRFAX COUNTY AND FAIRFAX CITY

Department of Housing and Community Development

Phone: 703-246-5087

Web site: http://www.fairfaxcounty.gov/rha/homeownership

First Time Homebuyer Program: Offers affordably priced townhouses and condos ($70,000 to $160,000) to first-time buyers who meet income requirements.


Silver Lining Initiative Loan Program: Gap and down payment and closing cost assistance up to $91,767. Sales price limit $362,790. Must be first-time buyers who live or work in Fairfax County and purchase in Fairfax County.

FALLS CHURCH

Housing and Human Services Division

Phone: 703-248-5005

Web site: http://www.fallschurchva.gov

Low Income Mortgage Program: Provides reduced interest-rate financing to those who meet income requirements. Recipients are eligible for a reduced interest rate of up to 1 percent below VHDA’s conventional loans.

HomeStride Program: Provides down payment and closing cost assistance of up to $25,000 as a second mortgage. The loan is for 30 years, with no payments and no interest for the first three years; the interest rate is then fixed at 5 percent for the remaining years.

First Time Homebuyer Down Payment and Closing Cost Assistance: Provides down payment and closing cost assistance of up to $20,000 as a second deferred mortgage. The loan is zero interest and repayment occurs when the home is resold.

PRINCE WILLIAM COUNTY

Office of Housing and Community Development

Phone: 703-792-7535

Web site: http://www.pwcgov.org/housing

Prince William County programs require that recipients be first-time home buyers who have lived or worked in the county for at least six months and have not had ownership in another property within the past three years. Applications are available online but must be submitted in writing. In some cases there are additional requirements.

Homeownership Assistance Program: Provides up to $75,000 and up to 6 percent of the sale price for actual closing costs as a 30-year deferred payment with no interest


American Dream Downpayment Assistance: Provides 6 percent of sales price (maximum $10,000)

for down payment, in addition to Homeownership Assistance Program, a 30-year deferred payment with no interest


Rehabilitation Acquisition Program: Provides up to $25,000 as additional down payment for properties bought under either of the two other programs. Property must require a minimum of $2,000 in repairs or improvements, maximum improvements $50,000.