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Downpayment Assistance for Higher Income Buyers: A Follow-Up Q&A

by Shilpi Paul

Downpayment Assistance for Higher Income Buyers: A Follow-Up Q&A: Figure 1

Last week, we wrote about a new program from DC’s Housing Finance Agency that targets higher income home buyers. In short, DC Open Doors is a mortgage program that offers down payment assistance of up to 3.5 percent of a home’s purchase price for those with an income up to $123,395.

A few of commenters had follow-up questions about the program, so we reached out to Carisa Stanley, HFA’s Director of Single Family Programs for answers.

AC asked: Can you use the 3.5 percent in addition to your own money for a down payment or only the 3.5 percent?

Answer: This is a decision best made by a borrower consulting with one of our approved lenders as there are a number of different purchasing scenarios. For example, a borrower could use the down payment assistance from DC Open Doors and use their own money for closing costs.

Francisco asked: Does anybody have any insight as to how long this program will run?

Answer: DCHFA has a steady source of continuous funding to help as many people own homes in DC as possible.

Barak Sky asked: Do they average the last two years of your income to get $123k?

Answer: No. Income is based on what is documented at the time of application. An approved lender can help walk through this.

Shaw Resident asked: Is there a cap on the amount of assets you can have to qualify?

Answer: DC Open Doors only requires that you meet its income cap of $123,395; however, each loan will be fully underwritten by an approved lender per FHA or Fannie guidelines.

See other articles related to: down payment, dclofts

This article originally published at http://dc.urbanturf.com/articles/blog/downpayment_assistance_for_higher_income_buyers_a_few_follow-ups/7343

4 Comments

  1. Guest 1 said at 5:24 pm on Monday July 22, 2013:
    Thanks for following up on the previous article. Where can we find the specific FHA or Fannie guidelines referenced here?
  1. wtfohno said at 9:47 pm on Monday July 22, 2013:
    is this true? HUGE CAVEAT: what i learned from a wells fargo lender is that if you participate then the rate is 5.35% on 30 year fixed. much higher than the market lending rate.
  1. Silver Spring For Now said at 5:03 pm on Tuesday July 23, 2013:
    @wtfohno I believe the Wells Fargo information is true and is in line with the DC Open Doors website. There's definitely a catch with using the program. However, quite a few people who don't have the down payment might be fine with that.
  1. Michael said at 6:16 pm on Tuesday July 23, 2013:
    Yes wtfohno, you do pay a higher rate than what is currently offered for conventional loans. However, that rate is still significantly lower than the best rates offered several years ago and if you're going to be staying in this home for just a couple of years, it's not that much of a difference.

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