The City of Falls Church offers closing cost and down payment assistance of up to 20% of the purchase price of a house (less than $450,000) for first time homebuyers. The assistance is a second interest-free loan, with repayment due at the sale or refinance of the home, or if the buyer rents the home out (it is no longer the buyer’s primary residence). One caveat: the City wants an interest in any appreciation in the property for the use of the money. If they loan you 20% of the purchase price of the home and it appreciates, when you sell the home, they want 20% of the new sale price.
Requirements to qualify:
Income restricted to 120% of the area median, which for a household of 1-2 people is $120,000.
Credit score of 620 or better.
Be able to qualify for a 30 year loan.
Be able to contribute at least 2% down.
Buy a home within Fall Church City that is less than $450,000
Ask us for more information about how this program stacks up to others on offer in the area, or a recommendation on getting started in your search or working with a lender.
If you're new here, you may want to subscribe to my RSS feed. Not in the DC area but need a recommendation for a good real estate agent? I have a nationwide network -- just ask me!
If you have 1% cash and can otherwise qualify for a FHA loan, you may be able to get a second loan for the amount of your down payment from VHDA Plus Loans program. The income and sales price limit on this VHDA funded, FHA insured second mortgage are slightly more generous than some other first time homebuyer programs. You can qualify if your household of 2 makes less than $122k a year and you are looking to buy a place that is under $500k. There are other qualifications, including having good credits (above 620) and taking a buyer education course, but this program can help bridge the cash gap to get your into your new home. Let us recommend a great lender who can help get you pre-qualified.
July is hot, and so is the Wethman Group! We are thrilled to be named to the list of Washingtonian’s Best Realtors in the DC area for the 2nd year in a row! Thanks to all of our past clients and friends who continue to support us and make us great. We’re honored!
June numbers show the market is as hot as the temperatures outside! Sales reached the highest point since 2009, and the median sales price for the DC area reached an all-time high. But the overall median sales price skews the story. Some pricier neighborhoods like Georgetown and Adams Morgan saw a fairly large decrease in median price last month compared with this time last year. This is a trend we have been seeing for the last several months. Buyers are active, the volume of sales closing are up, but there is still flexibility in price in some neighborhoods and on certain listings. A recent list of DC’s most and least expensive neighborhoods, is both interesting and somewhat shocking (Dupont in most affordable?), but this type of analysis isn’t comparing apples to apples (Dupont makes the list because of the number of smaller apartments and condos for sale). The Washington Post just named 3 new neighborhoods that are heating up. Deciding where to buy can be a complex decision, especially with the market as interesting as this one. When you are weighing your options, reach out for a quick chat on what we are seeing in the neighborhoods you are considering.
One thing is certain, following Brexit, we are seeing near record low interest rates! If you are consideringrefinancing, reach out- we can recommend several great local lenders to work with to get the best rates. Another constant – inventory is low and continues to decline. Sellers, it is still a great time to get on the market! Let us walk you through a timeline that makes sense for you and our plan to maximize your return on investment.
Did you know we provide FREE educational seminars on home buying and selling to offices, alumni associations, community groups, and others. Attendees love these! If you know a group who might benefit, let us know, we’d love to set something up.
If you are a DC resident and fit certain income restrictions, you may qualify for an interest-free loan to purchase a home in the District. Home Purchase Assistance Program (HPAP) provides gap financing assistance of up to $50,000 and up to $4,000 toward closing costs. Payments are deferred for the first 5 years, lowering the monthly out-of-pocket amount for buyers while settling into their new home. This is a great program, but there are a fair number of restrictions to qualify.
Low to moderate income (moderate is currently capped at $84,100 or $96,900 depending on household size)
No ownership interest in a residential real estate property for the previous 3 years
First trust loan amount capped at $417,000- conforming loan maximum
We are happy to walk you through this or other options available to first time homebuyers in the District, Virginia, and Maryland.
If you are looking in Arlington and haven’t yet saved up the money for a down payment or closing costs, Arlington County has a program that may help. Arlington’s MIPAP program offers a deferred 0% interest rate loan to first-time homebuyers to help cover a down payment or closing costs of up to 25% of the purchase price. You make no monthly payments on the subordinate loan from the County until you sell or refinance. The County does get a shared interest in any potential appreciation of the property down the road when you go to sell or refinance. At the sale, you split any appreciation, up to 25% (determined by an appraisal), proportionally with the county in addition to paying off the original loan. If the property hasn’t appreciated, you simply repay the original loan, interest free.
Moderate income, currently limited to $62,100 for 1 person or $69,920 for a household of 2
Property must be located in Arlington County
Buyer must contribute at least 1% as a down payment
Maximum purchase price is $362,790, maximum loan amount is $90,700.
If you are interested in learning more about this or other programs available to homebuyers, please do reach out. We are happy to help you understand your options and find the right place for you.
Do you have the income and credit to buy a home, but haven’t saved the cash for a down payment yet? DC Open Doors may be the answer. The program provides fully-forgivable loans for minimum (3-5%) down payments and access to below-market interest rate loans. This equates to essentially 100% financing. There are a few requirements listed below, but this program has already helped over 500 buyers in the first 3 years of operating the program.
Program Qualification Highlights
Can have an income of up to $125,580
Good Credit >640
Not required to be a first time homebuyer
Best of all, the down payment loan is offered at 0% interest and is forgiven at 20% a year for 5 years. As long as the buyer makes payments on time and continues to occupy the property as their primary residence, the down payment loan is completely forgiven after 5 years! If a buyer decides to sell before the 5 years are up, they just pay off the remainder of the 0% interest loan along with the underlying mortgage. This great program is designed to help DC residents afford to stay in the city when they are ready to buy. If you are interested in learning more about this or other resources available to buyers, please contact us. We are always happy to walk you through your options.