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

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 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 the borrower.
3. The home must be located in either the District of Columbia, Prince George’s County, Charles County, Baltimore City, or 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 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 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 borrower may not have had any charge-offs or delinquencies in the previous six months and must have a solid repayment history.
11. 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.
12. The borrower must qualify for a conventional mortgage, and the mortgage lender must be willing to accept the terms of the HBCFE DPA loan.
13. The borrower will be underwritten by HBCFE to ensure their mortgage payment and HBCFE DPA loan affordability.

Current Preferred Lenders