DC Runs Out of Funds for Low-Income Homebuyer Program 9 Months Early

The District’s homebuyer assistance program is now closed as all allocated funds have been exhausted. Initially intended to run from October 2023 to September of the following year with a budget of $26.2 million, the program has reached its capacity.

 

This program, aimed at aiding D.C. residents with low to moderate incomes, offers interest-free loans and assistance with closing costs. Eligible applicants could receive up to $202,000 for home purchases along with $4,000 for closing expenses.

 

Prospective applicants must wait until October for the program to reopen for the fiscal year 2025 cycle. The program had previously undergone an expansion in financial aid, increasing assistance from $80,000 to $202,000. This enhancement underscores the significance of homeownership in addressing racial wealth disparities within the city, as highlighted by D.C. Mayor Muriel Bowser in a 2022 statement.

 

The full $202,000 assistance is available to households earning 50% or less of the District’s median family income, provided as an interest-free loan. Additionally, residents earning between 80 and 110 percent of the city’s median income have the option to defer mortgage payments for the initial five years of homeownership and make principal-only payments over 40 years.