DPA Program Eligibility

Borrowers must meet all requirements listed below to qualify for the program. In addition to the listed criteria, all borrowers are required to undergo a full assessment by an underwriter. This evaluation ensures that financial documentation, creditworthiness, and risk factors are thoroughly reviewed in accordance with lending guidelines. The underwriter’s review is a critical part of the approval process and may result in additional documentation requests or conditions prior to final approval. If you have any questions about eligibility, please don’t hesitate to reach out to us.

Eligibility

1. The borrower must not currently own or purchase a property in the last 3 years, and the following criteria further classify a first-time homebuyer (FTHB):
   • As an individual who has had no ownership in a principal residence during the 3 years ending on the date of purchase (closing date) of the property.
   • A FTHB includes any individual who has only owned property with a former spouse while married.
   • A FTHB would also include an individual who has only owned a principal residence not permanently affixed to a permanent foundation, or a property that was not in compliance with State, local, or model building codes and cannot be brought into compliance for less than the cost of constructing a permanent structure.
2. The home being purchased must be the primary residence for all the borrowers.
3. The home must be located in either the District of Columbia, Baltimore City, or in the following Maryland counties: Prince George’s County, Charles County, and Baltimore County.
4. The home purchase price must be at or under $625,000. This figure is reviewed annually.
5. The borrower must identify as Black and/or Latino. (Find out more about  Special Purpose Credit Programs.)
6. The borrower must participate in homeownership counseling and provide a certificate of completion to HBCFE.
7. The borrower must complete the HBCFE DPA program orientation.
8. At closing, the borrower’s total debt-to-income ratio, including their monthly mortgage payment, should not exceed 45% DTI.
9. The borrower’s income must fall below 120% of the Median Family Income (MFI) as defined by the U.S. Department of Housing and Urban Development (HUD) for their household size, and any co-borrower’s income will also be included. Children and additional dependents are incorporated into the household size. You can find the income charts for:
   • The Washington, DC, Prince George’s, and Charles County chart may be found here.
   • The Baltimore City and Baltimore County chart may be found here.
10. The maximum combined loan-to-value (CLTV) ratio is 105%, including any additional purchase assistance if qualified. If the total amount of assistance the borrower is eligible for and the total amount financed (including all loans) is over 105%, we may reduce the HBCFE loan amount to ensure that the total amount financed remains below 105% CLTV.
11. The borrower may not have had any charge-offs or delinquencies in the previous six months and must have a solid repayment history.
12. When the lender refers the borrower to HBCFE, they should have a pre-approval or conditional approval letter from a first trust lender and be under contract.
13. The borrower must qualify for a conventional mortgage, and the mortgage lender must be willing to accept the terms of the HBCFE DPA loan.
14. The borrower will be underwritten by HBCFE to ensure their mortgage payment and HBCFE DPA loan affordability.

Current Preferred Lenders