Home News Muriel Bowser ups aid to first-time home buyers in DC housing market

Muriel Bowser ups aid to first-time home buyers in DC housing market

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For the first time this year, DC will more than double the amount of assistance homebuyers can receive from the government to help Washingtonians, especially black Washingtonians, compete in the district’s explosive housing market. .

Beginning October 1, first-time homebuyers may receive up to $202,000 in assistance from the city, DC Mayor Muriel E. Bowser, a Democrat, announced Monday.money, part of the district Home purchase assistance program (HPAP) is issued in the form of low-interest loans that allow households to defer repayments for up to five years.

Previously, HPAP allowed eligible homebuyers to receive loans. up to $80,000 Up to $4,000 in Gap Financing and Down Payment Assistance, plus an Additional Closing Cost Grant. Eligibility is determined by income.

D.C. Deputy Mayor John Falcichio said it aims to help residents “keep up with the hot housing market” at a time when interest rates are rising and inflation is making living in the city even more expensive.

“We knew we had to do something to make the program more viable for potential homebuyers,” he said last week. “We wanted our residents to be the most prepared as they entered this hot housing market.

DC development skyrocketed under Bowser. The same goes for housing costs.

An amount determined by Washington, DC officials—agreeing to the district area code—allows individuals to qualify up to $109,600 and families of four up to $156,550. step-by-step aid Depends on income level. Loans range from $70,000 to $202,000 for him.

Tsega Bekele, chief of staff for the Housing and Community Development Authority in Washington, D.C., said the numbers were “a gimmick, but this is real money to help people.”

By making dramatic changes to the program, the District is “focusing primarily on black homeownership to get more people to buy and live in the District.” “If you have $202,000 available for your down payment, you might be thinking, ‘Wow, I could buy a house too.'”

The median home price in DC was $646,000 in July, according to Bright MLS.

The expansion of the program comes at a time when the mayor is expected to win a third term in office amid soaring housing markets and widespread fears about housing affordability in the district.In recent months, her office has been trying to expand. initiative It aims to help Washington citizens buy or stay home.

Despite financial assistance, first-time homebuyer program participants still struggle to remain competitive in the district’s heated housing market due to some of the program’s requirements, including approved home inspections. It says it does. It is unfavorable for buyers who are able to raise funds more quickly or against others who are willing to give up all contingencies.

But more changes could be on the horizon.

Bowser launched a new “Offensive powerwas intended to increase black homeownership and close the racial equality gap in the district. The group plans to issue recommendations by October to guide how DC will spend his $10 million allotment. Assigned For black homeowners on the 2023 budget.

According to Bekele, this HPAP increase stems from one of the strike force’s early recommendations.

About 350 people have received assistance through the program since Bowser took office in 2015, officials said.

Mayor Bowser announces $10 million effort to help black homeowners

During his first term, Bowser doubled the amount of down payment assistance a potential homebuyer could receive from the Home Buyer Assistance Program, giving city officials, teachers, and first responders (its applicants) We have created a program specifically intended to provide financial assistance. The program can receive an additional $20,000.

The country’s property market may have cooled thanks to rising interest rates, but Falcicchio said the district’s housing market showed no signs of a significant slowdown.

Officials said they want to allow residents to buy homes even as property prices continue to hit all-time highs.

“If you look back at the history of housing market declines nationally, it has never felt as bad as anywhere else,” Falciccio said. By raising the ceiling of assistance that prospective homebuyers can receive, “those who participate in the program will be placed on a level footing in the market for their first home, including condominiums and non-luxury homes.” What kind of houses can I go to in the district?”

Bowser also announced the expansion of the district Homeowner Assistance Fundprovides financial relief to homeowners in need of repairs in their homes, from the 7th and 8th Wards to city dwellers. The school district has a $50 million donation for her, which is part of the pandemic relief efforts, and will accept applications through the end of September.

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