HPAP, or the Home Purchase Assistance Program, is built for first time buyers in Washington DC needing assistance with the down payment and closing costs. Approved applicants are eligible for a repayable loan for both closing costs and down payment funds.  The down payment assistance loan can range from about $16,000 to $80,000, and the closing cost assistance up to $4,000.

The minimum cash contribution for a buyer when using HPAP funds is either $500 or half of their savings above $3,000.

The HPAP loan repayment is deferred for five years after the purchase, and then must be paid back over a forty year period with no interest. The remaining sum is due in full upon moving out or selling.  Therefore if you plan to move out of the property and convert it to a rental, this program may not be a good fit.

The income limits for the program vary by household size, and is found below here:

The HPAP program funds are meant to be gap financing, to make a housing payment that would otherwise not be affordable, affordable.  The program guidelines require that if the proposed housing payment is less than 28% of your gross monthly income, that your HPAP loan be reduced.  This is because there is a limited amount of funds allocated to HPAP annually and if a first time buyer’s proposed housing payment is less than 28% of their income, HPAP’s opinion would be that others need access to the assistance more.


DC government employees may also be eligible for EAHP, or the employer assistance housing program. This provides for an additional $5,000 grant towards closing costs and a $20,000 repayable loan as well. The maximum sales price for getting EAHP by itself without HPAP money is $822,375.

In addition to pre-qualifying, you also need to qualify through me as well for pre-approval, and you may pre-qualify through this link:

So in summary – here is the guide to HPAP financing:

  1. The borrower must apply through a community based organization and here is the list of all organizations you can work with: https://dhcd.dc.gov/node/702332.   I have the most experience with HCS, ULS, and LEDC
  2. The borrower first attends a 2hr orientation session.  They then submit their documentation to the community organization and wait for a “notice of eligibility.”  Processing time for this is about 2 months (currently).  One of the docs required for the notice of eligibility is the credit report.  If I have a credit report for a borrower, I can with permission send this to the community organization.
  3. After they get the notice of eligibility they must attend a first time buying class.  The class is 8 hours on a Saturday and is offered once per month.  After the class there is homework to submit to the counselor, and then they receive the 8 hour home buying class certificate.
  4. Once the borrower has both the notice of eligibility and the counseling certificate, they are pre-approved to use HPAP financing.  This whole process preceding this moment typically takes about 6-8 weeks.
  5. They then shop for a property, when it comes to writing an offer, closings with HPAP typically take 45-60 days.
  6. When submitting the offer, the HPAP addendum must be signed by the parties — please request this document from me.
  7. The home inspection must be done by a licensed home inspector.  If the inspector requires anything be fixed, they will need to re-inspect post-repair.  After the home inspection “passes,” they will give you a form to provide to HPAP, please also send this and the home inspection to me.  Here is a link to the required form: http://www.dchfa.org/wp-content/uploads/2018/06/hpap-inspection-authorization-fillable.pdf
  8. Make sure to complete a termite inspection and send that to me as well.  HPAP requires this on all properties, including condos.

Here is what an applicant will provide for the HPAP pre-approval “notice of eligibility” through one of these organizations: https://dhcd.dc.gov/node/702332 

 Two most recent pay stubs for all applicants (ALL JOBS)
 Last 60 days bank statements for ALL ACCOUNTS
 Most recent 3-Years federal tax returns for all adults
 Most recent 3-Years W-2s for all adults
 Most recent 2-Years District tax returns for all adults
 Credit report
 Signed Rental Verification Form (Form is provided by counselor)
 Rental lease
 Driver’s license or identification card for all applicants
 Birth certificates for all dependents (IF APPLICABLE)
 Written explanation of any credit problems (IF APPLICABLE)