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 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 cannot be brought into compliance for less than the cost of constructing a permanent structure.
- The home being purchased must be the primary residence for the borrower.
- The home must be located in either the District of Columbia, Prince George’s County, Charles County, Baltimore City, or Baltimore County.
- The home purchase price must be at or under $625,000. This figure is reviewed annually.
- The borrower must identify as Black and/or Latino. (Find out more about Special Purpose Credit Programs.)
- The borrower must participate in homeownership counseling and provide a certificate of completion to HBCFE.
- The borrower must complete the HBCFE DPA program orientation.
- At closing, the borrower’s total debt-to-income ratio, including their monthly mortgage payment, should not exceed 45% DTI.
- The borrower’s income must be at or below 120% of the Median Family Income (MFI) as defined by the U.S. Department of Housing and Urban Development (HUD). You can find the income charts for:
- The borrower may not have had any charge-offs or delinquencies in the previous six months and must have a solid repayment history.
- 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.
- The borrower must qualify for a conventional mortgage, and the mortgage lender must be willing to accept the terms of the HBCFE DPA loan.
- The borrower will be underwritten by HBCFE to ensure their mortgage payment and HBCFE DPA loan affordability.
Current Preferred Lenders
Justin Cotton
Senior Home Lending Advisor, JPMC
NMLS #1783831
Office: 202.729.4404
Direct: 202.948.6850
Email: justin.cotton@chase.com
Lola Pol
Community Lending Manager
NMLS #192773
Office: 202-609-9532
Direct: 301-518-6333
Email: lpol@capitalbankmd.com