According to the National Association of Realtors, the hardest thing for a first-time homebuyer to do is to save up enough money for a down payment. Housing prices and rents are higher in urban areas like Washington, D.C., which makes it even harder for people to save money for a down payment for a home purchase.
There are many loan programs that are available to first-time and repeat home buyers, and one of these programs is the DC Open Doors Mortgage loan.
The DC Open Doors Mortgage loan program provides home mortgages in Washington DC and payment assistance to qualified buyers who want to purchase a home in any area or neighborhood in the District. The District of Columbia Housing Finance Agency works with participating Washington DC mortgage lenders to provide borrowers with zero or low-down-payment home purchase financing. The borrower cannot currently own a home to participate in this program.
There are two options that dc mortgage lenders offer in the DC Open Doors loan program.
Zero Down Payment Option
The zero-down payment option provides borrowers with a loan of up to $424,100 if their personal income does not exceed $132,360. With this mortgage, the mortgage lender provides borrowers with a down payment for a home purchase in the form of a forgivable loan. This loan does not have to be repaid if the borrower lives in the home they bought for a minimum of five years. If the borrower sells or refinances the loan within five years, then the down payment loan must be paid back.
3% Down Options
The second DC Open Doors loan is a super conforming loan option that provides between $424,100 to $636,150 in financing with a 3% down payment. The borrower can have their mortgage insurance payments reduced with this loan, which means the borrower can have the best loan terms in the Washington, D.C. area while putting less than 20% down. This program begins on June 20, 2017.
Loans that are $424,100 or lower will have a higher interest rate if the borrower chooses to take the down payment assistance. If the borrower chooses to not have any down payment assistance, then they will have to make the 3% down payment on a conventional loan or a 3.5% down payment on an FHA, but the borrower will have a lower interest rate.
The borrower should set up an initial phone call with a Washington DC mortgage lenders like Gregg Busch to determine which option is right for them. They can answer any questions a borrower has about the loan program, basic financial requirements, projected monthly mortgage payments, and any other questions about purchasing a home in this program.