Unlocking Homeownership: Downpayment Assistance in the DMV

At United Bank, we understand the excitement and apprehension that comes with buying a home. The process can be overwhelming, especially when it comes to the financial aspects. One of the most significant hurdles of homeownership is saving for a down payment. However, you might be relieved to know there are several down payment assistance (DPA) and grant programs available in our area that can make your dream of homeownership more attainable. 

Down Payment Assistance Programs

Down payment assistance programs are designed to help first-time, and sometimes repeat, homebuyers cover some of the costs associated with purchasing a home. These programs can come in the form of grants, low- or no-interest loans, deferred payment loans, or forgivable loans. While each program has its own set of eligibility requirements, they all share the common goal of reducing the financial burden for eligible homebuyers.

United Bank’s Welcome Home and Journey Home Grant Programs – These programs offer financial assistance to first-time homebuyers for down payments and closing costs, making it easier for buyers to purchase their first home. It focuses on supporting buyers in specific areas, enhancing accessibility to homeownership and aims to reduce the initial financial burden of homeownership. Eligible borrowers could receive up to $10,000 in Grant Assistance.  

DC Open Doors – This program provides down payment assistance and affordable mortgage options to first-time and repeat homebuyers in Washington, DC. It aims to make homeownership more accessible by offering financial support and competitive loan products.

HPAP (Home Purchase Assistance Program) – This program provides substantial financial assistance for down payments and closing costs to eligible first-time homebuyers in Washington, DC. It aims to make homeownership more accessible by offering deferred payment loans.

EAHP (Employer-Assisted Housing Program) – Targeted at District of Columbia government employees, EAHP offers financial support for down payments and closing costs. The program provides matching funds and additional assistance to help eligible DC government employees buy their first homes.

Pathway to Purchase – This initiative in Prince George’s County, Maryland, provides down payment and closing cost assistance to first-time homebuyers. The program is designed to help buyers overcome financial barriers and achieve homeownership in the county. Eligible borrowers may receive up to $25,000 in assistance. 

MMP (Maryland Mortgage Program) – The MMP offers a variety of mortgage products to make homeownership more accessible for residents of Maryland. It provides competitive interest rates, down payment assistance, and flexible financing options tailored to first-time homebuyers and those purchasing in targeted areas. What makes MMP unique is the range of associated financial incentives and other assistance that, for many homebuyers, means the difference between being able to purchase and continuing to rent. 

Federal Home Loan Bank (FHLB) of Atlanta –  The FHLB of Atlanta offers several down payment assistance programs aimed at making homeownership more accessible for low- to moderate-income individuals and families. These programs provide grants through member financial institutions, offering up to $15,000 for eligible homebuyers. The funds can be used to cover down payment and closing costs, reducing the financial barriers to purchasing a home. By partnering with local lenders, like United Bank, FHLBank Atlanta ensures more prospective homebuyers have the support they need to achieve their dream of homeownership.

Steps to Apply for Down Payment Assistance

Work with a reputable Loan Officer: I am familiar with the programs available in the area and their criteria. I can help you determine the best program for your situation and guide you every step of the way.

Assess Your Eligibility: Review the eligibility criteria for each program. Factors like your income, credit score, location, and employment status will determine which programs you qualify for.

Attend Workshops: Many programs require the completion of homebuyer education courses. These workshops provide valuable information on the home-buying process and financial management.

Gather Documentation: Prepare necessary documents, such as proof of income, tax returns, bank statements, and employment verification.

Apply for Assistance: Submit your application along with the required documentation. Be prepared for a review process, which may include additional financial counseling or interviews.

Securing a down payment can be one of the most challenging aspects of buying a home, but you don’t have to go through it alone. As a mortgage loan officer, I’m here to assist you every step of the way. Let’s explore all the options together and take the first step toward making your homeownership dream a reality. 

If you have any questions or are ready to get started, feel free to reach out. Your journey to homeownership starts here!

Stephen A. Morris
SVP, Director Community Lending
NMLS ID 459546
www.bankwithunited.com/stephen-morris

Disclaimer

United Bank | NMLS ID 522399 (www.nmlsconsumeraccess.org) | Member FDIC | Equal Housing Lender | BankWithUnited.com 

United Bank is not endorsed by or affiliated with any government agency or program.

United Bank is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age (provided you have the capacity to enter into a binding contract), because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. The federal agency that administers our compliance with these federal laws is the Federal Reserve, Federal Reserve Consumer Help, PO Box 1200, Minneapolis, MN 55480.

This is not a commitment to lend. Mortgage products and services are offered through United Bank. All loan applications are subject to credit and property approval and must meet loan program requirements to qualify. Annual Percentage Rate (APR), programs, rates, fees, closing costs, terms and conditions are subject to change without notice and may vary depending upon credit history and transaction specifics. Other closing costs may be necessary. Flood and/or property hazard insurance may be required.  Speak with a Mortgage Loan Officer for more specific information.

Welcome Home Grant: Subject to Credit Approval. Not all applicants are eligible. Welcome Home Grant is a Lender Grant and is only available in select market areas. No cash back for the Grant funds allowed. Loan must be for purchase or eligible refinance of primary residence. For Purchase transactions, Grant is capped at $10,000, with up to 3% of sales price or appraised value (whichever is less) applied towards down payment first and then any remaining funds applied to closing costs. For eligible Refinance transactions, up to 3% of appraised value, with a maximum of $10,000 will be applied towards closing costs. Property type and location limitations apply. Loan terms and conditions apply, including but not limited to, maximum loan-to-value of 97%, maximum loan amount, minimum credit score, and maximum income limits. Homebuyer education may be required. Grant program may be considered taxable income. 1099-MISC may be issued. You should consult with your tax advisor. Program rates, terms, and conditions are subject to change without notice.

Journey Home Grant: Subject to Credit Approval. Not all applicants are eligible. Journey Home Grant is a Lender Grant and is only available in select market areas. Grant is capped at $10,000, with up to 3% of sales price or appraised value (whichever is less) applied towards down payment first and then any remaining funds applied to closing costs. No cash back for the Grant funds allowed. Loan must be for purchase or eligible refinance of primary residence. Property type and location limitations apply. Loan terms and conditions apply, including but not limited to, maximum loan-to-value of 97%, maximum loan amount, minimum credit score, and maximum income limits. Homebuyer education may be required. In addition to Journey Home Grant requirements, borrowers must meet Fannie Mae HomeReady program eligibility requirements. HomeReady® is a registered trademark of Fannie Mae. Mortgage Insurance is required for properties with over 80% loan-to-value. Grant program may be considered taxable income. 1099-MISC may be issued. You should consult with your tax advisor. Program rates, terms, and conditions are subject to change without notice.