Blog
CRA
We offer community reinvestment act (CRA) loan programs in DC, Maryland, Virginia 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, but an eligible buyer cannot currently own real estate. The product without mortgage insurance is called Homerun.
To be eligible for Homerun, either a home buyer needs to purchase in a low-to-moderate census tract [no income cap] or have income below ~$153,960 [DC, Maryland] or $197,040 [Virginia].
There are numerous ways to be eligible for the CRA program; the best loan terms are available if the property you’re purchasing is within a census tract with a Black/Hispanic population of 50.01%+ as of the 2024 census. [The 2024 census is still being used in 2025 as of February]. Here is a map that’s NOT official, but it will give you a sense of possible areas (in purple). If you want me to look up a particular property for program eligibility please ask me.
If you prefer to check a property yourself, the link to check is https://geomap.ffiec.gov/ffiecgeomap/. If a property doesn’t meet these requirements, the CRA program may still be available with different loan terms.
Typically the first step is setting up an initial phone call to review available loan programs and your basic finances to see if this program is a fit. 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 program has numerous eligibility requirements, and not all of the requirements are written below, but some are.
The most your debt to income ratio can be is 41-43% for the no mortgage insurance CRA program [Homerun], 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 (660+ for a condominium). In addition to documenting having sufficient funds for down payment and closing costs, 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 homebuyer education class certificate is required and I recommend this one https://creditsmart.freddiemac.com/paths/homebuyer-u/
If a property is NOT in a census tract with greater than 50% Black/Hispanic population, the no MI program can still be available with a ~$120,000 income cap in targeted areas [I have to look up eligibility for that]. Or, with mortgage insurance up to $153,960 [DC, Maryland] or $197,040 [Virginia]. The most opportunities for eligibility are within these counties.
DC: District of Columbia
MD: Montgomery County, Prince George’s County
VA: Arlington County, Fairfax County, City of Alexandria, Falls Church City, Fairfax City
Co-ops are ineligible for this program. With 5% down+ and 6 months reserves, 2-unit properties are eligible!
This program is incompatible with Community, One, Dream, Heroes, HPAP, or any bond program