Blog

CRA

 

We offer community reinvestment act (CRA) loan programs in the below cities/counties in the DMV which can offer improved loan terms to eligible buyers.  An eligible home buyer could make just a 3%+ down payment on a conventional 30 year fixed loan and not have mortgage insurance.  These programs are for both repeat and first time home buyers.

DC: District of Columbia

MD: Montgomery County, Prince George’s County

VA: Arlington County, Fairfax County, City of Alexandria, Falls Church City, Fairfax City

To be eligible either a home buyer needs to purchase in a low-to-moderate census tract or have income below ~$120,000. If your income is under ~$120,000 we don’t need to look at the below map, you just need to be buying in the aforementioned counties.

Here is a map that’s not meant to be official, but it will give you a sense of areas where there is no income cap (shown in purple). If you want me to look up a particular property for program eligibility please ask me.

Or if you prefer to check the map yourself, the link is https://geomap.ffiec.gov/ffiecgeomap/. The property needs to be in a ‘tract income level’ of low or moderate.

 

Typically the first step is setting up an initial phone call to review available loan programs and your basic finances.  The goal is to establish the best financing structure for your purchase and determine an appropriate price range for your search.  You’re welcome to set an appointment with me by clicking this link: Calendly

 

Pre-Qualify Now: https://ajaffe.firsthome.com/startapp

ajaffe@firsthome.com 240 – 479 – 7658

 

The most your debt to income ratio can be is 41-43% for the no mortgage insurance CRA program, or potentially 45-50% for the loan with MI. This loan program is for fixed interest rates only.

The minimum credit score is 640 for the loan program with no MI. In addition to documenting having sufficient funds for down payment and closing costs, an eligible buyers needs to have the equivalent of two months of mortgage payments in savings in reserve (still in savings after down payment/closing costs)

A first time buyer class certificate is required and I recommend this one https://creditsmart.freddiemac.com/paths/homebuyer-u/

Income cap for DC, Arlington, Alexandria, Fairfax, Falls Church, PG County is currently $120,080. Income cap for Montgomery County is currently $121,120.

To be eligible for the no mortgage insurance CRA program, you cannot currently own real estate. But you don’t need to be a first time buyer. If you do currently own real estate we do have a CRA program that’s eligible in some but not all low-to-moderate income census tracts but this program does have mortgage insurance if you’re putting down less than 20%.

Co-ops are ineligible for this program. With 5% down+ and 6 months reserves, 2-unit properties are eligible!

This program is incompatible with One, Dream, Heroes, HPAP, or any bond program