Friday, June 22, 2007

What is HPAP?

What is HPAP?

HPAP (Home Purchasing Assistance Program) enables lower and moderate income individuals and families to purchase affordable housing in Washington D.C. Qualified HPAP applicants receive financial assistance to purchase single-family houses, condominiums and cooperative apartments. HPAP funds can be used for down payment, and/or closing costs.

HPAP loans are awarded to a limited number of applicants each year, depending on funds allocated in the department’s budget. Loan amounts are determined by a combination of factors, including income, household size, and the amout of assets that an applicant can commit toward the purchase price of a home. In addition, all loan recipients are required to maintain their properties in compliance with D.C. Housing Codes.

Are You Eligible for a Loan?

To be eligible for an HPAP loan, you must fulfill the following qualifications:

-legally reside in Washington, D.C. for at least one year,

-head a very low, lower, or moderate-income household

-not have an ownership interest in any other housing in the Washington D.C. area

-possess a good credit rating

-have personal funds to cover 3% of the purchase price of a selected house or a minimum of $500 toward the purchase of a selected house.

Income Guidelines

The following income limits for HPAP applicants were established based on F.Y. 2000 median family income levels for the Washington D.C. area from the U.S. Department of Housing and Urban Development.

Persons in Household Very low income Low income Moderate income
1 $28,200 $46,450 $63,750
2 $32,250 $53,000 $72,850
3 $36.350 $59,600 $81,950
4 $40,500 $66,250 $91,100
5 $43,500 $70,400 $96,750
6 $46,750 $74,500 $96,750
7 $50,950 $78,650 $96,750
8 $53,200 $82,800 $96,750

7 Easy Steps to Homeownership

Step 1 - Contact the community based organization closest to your home for a pre-application housing counseling session.

Step 2 - Gather the required documentation requested by your housing counselor and complete your HPAP application.

Step 3 – Wait for your eligibility letter to arrive from the Greater Washington Urban League (GWUL). If your application is approved, you will receive a Notice of Eligibility, which will indicate your financial assistance amount and the qualifying price range for your new home.

Step 4 – Find a house, condominium, or cooperative apartment and enter into a sales agreement to GWUL.

Step 5 – Complete your mortgage application from your carefully selected financial institution. Be sure to include a copy of your Notice of Eligibility and sales agreement.

Step 6 – Complete the transfer of ownership from the current homeowner to you, which is known as settlement.

Step 7 – Move into your new home.

2 comments:

Anonymous said...

There should be a better system for seeking hPAP assistance. Every time I speak to represenatives from affilliated "community organizations" I am met with rude, non-friendly personnel who give little to no information about the process. From the initial homeownership meeting, applicants are scheduled 3 months down the line for the initial interview, then, if you have to rescheule, you have to wait another 3 months and obtain all of the same information all over again.

Its as if the government really wants to discourage people from completing the process.

Anonymous said...

I completely agree with the previous comment. This process has been long and drawn out. I was finally able to get my paperwork submitted,after similar hoops, still no response after two weeks. I would love to hear from someone that has been approved to see if its really worth it!