HIP Subordinate Deed of Trust

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Equal Housing Opportunity

HIP Subordinate Deed of Trust

Many homebuyers face challenges when trying to qualify for mortgages on higher-priced homes. The HIP Subordinate Deed of Trust (HIP) makes homeownership more affordable in Washington, D.C. by offering eligible first-time and repeat buyers forgivable financing for down payment and closing cost assistance.*

The assistance reduces the amount needed for a first trust mortgage.

Down Payment Assistance

The HIP Subordinate Deed of Trust offers up to $20,000 of down payment and closing costs in fully forgivable financing that reduces the amount needed for a first trust mortgage. Eligible buyers of workforce homes may receive up to $20,000 in subordinate financing through the HIP Subordinate Deed of Trust, which may help reduce the amount needed for a first trust mortgage. *Forgivable financing will not be available if any of the following occur: the property is sold or transferred to another individual or entity (including transfers by gift), it is no longer used as the borrower’s primary residence within five years of closing, or the first trust mortgage is refinanced.

Eligibility & Requirements

Eligibility:

  • Open to both first-time and repeat homebuyers who don’t currently own a home.
  • Open to both residents and non-residents of DC.
  • Only apply when purchasing a workforce unit in Housing Investment Platform forsale projects supported by the DCHFA’s investment in affordable homeownership, in collaboration with emerging developers

Income Requirements*:

  • Maximum household income may not exceed 170 percent Area Median Income (AMI)
  • Maximum income of $275, 400
  • Income is based on BORROWER’s income ONLY (not household)

Ownership Requirements*:

  • Secured primary financing in place that is evidenced by a First Deed of Trust Note
  • Occupy the property as the principal place of residence for five (5) years
  • Maintain compliance with all terms and covenants of the first trust primary mortgage for five (5) years
  • In the event the Property is sold within the initial five-year period, equity proceeds are allocated between the Borrower and the Agency according to the distribution schedule provided at loan closing.

*Subject to change without notice

Equal Housing Opportunity
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