DPA Program Eligibility

Borrowers must meet all requirements listed below to qualify for the program. If you have additional eligibility questions, please reach out to us to discuss.

Eligibility

• The borrower must not currently own or have not purchased a property in the past three years, which is consistent with the FHA definition of a first-time homebuyer.
• The borrower will be underwritten to ensure their mortgage payment and HBCFE DPA loan affordability.
• Program assistance is for the purchase of a primary residence only.
  
• The borrower must qualify for a conventional mortgage, and the mortgage lender must be willing to accept the terms of the Homes by CFE Down Payment Assistance loan. Potential borrowers should have a pre-approval from a mortgage lender in order to process their application. 
• Borrower must be at or below 120% of the Median Family Income (MFI) as defined by the HUD Metropolitan Statistical Area. You can find the income charts for Washington, DC, Prince George’s, and Charles County here. The Baltimore City and County Guidelines may be found here.
• The borrower’s income must be below 100% AMI to qualify for the $10,000 additional purchase assistance. Purchase assistance availability is subject to underwriting guidelines and may be used to close any additional funding gap.
• The borrower may not have had any charge-offs or delinquencies in the previous six months and must have a solid repayment history.
• Borrower’s total debt-to-income ratio, including their monthly mortgage payment, should not exceed 45% at closing.
• After the loan closes, the borrower may not have more than six months of cash reserves. Cash reserves are defined as mortgage payments plus taxes and insurance. (This does not include 401(k) or other retirement accounts.)
• The borrower must identify as Black and/or Latino. (Find out more about  Special Purpose Credit Programs.)
• The home purchase price must be under $625,000. This figure is reviewed annually.
  
• Before finalizing program eligibility, the borrower must complete the Homes by CFE homebuyer orientation. 
• Property must be in the District of Columbia, Prince George’s County, Charles County, or Baltimore City and County.
• Before closing on the home purchase, the borrower must participate in homeownership counseling and provide a certificate of completion to Homes by CFE.