DC wants to 'Open Doors' to potential home owners
In order to qualify for the new program, the following conditions must be met:
- There is a borrower income limit of $123,395. Please note, this is not a household limit, so if two people live together and have a combined income of over $123,395, one member can still apply for the loan as long as his/her income is less than the limit.
- The borrower has a minimum credit score of 640.
- While borrowers are not prohibited from purchasing a higher priced home, there is a $417,000 loan limit.
- Once a borrower has applied, he/she is then required to take 8 hours of homebuyer education classes in person or online, and
- The program is not just available to first-time homebuyers.
The program provides for a 20% annual forgiveness for each year the property remains the borrower’s principal residence, therefore at the end of 5 years, the loan will be 100% forgiven.
The DCHFA website provides a list of participating lenders for any potential homebuyer who may have questions or be interested in the program and who meets the above-referenced criteria.