Share |
Buying A Home
 Buying A Home

City First Homes provides a $75,000 Down Payment Assistance Loan to make homeownership more affordable.

When homebuyers typically purchase a home, they borrow a large mortgage from a conventional bank that has an interest rate at 5%, 6%, or more, and must pay down payment and closing costs at time of purchase, which may equal 5-10% of the home price. With City First Homes, buyers borrow a $75,000 Down Payment Assistance Loan (DPAL) at 3.79% and interest-only payments for the first seven years; and a smaller "first mortgage" from a conventional bank. This leads to important financial benefits:
  • The DPAL can lower total buyer contribution (down payment and closing costs) at time of purchase to 2% of home price.
  • Due to the DPAL's low interest rate, and requirement of interest-only payments for the first seven years, monthly mortgage payments are significantly lower
  • Homebuyers may face difficulty getting approved for a mortgage. The DPAL significantly helps buyers to qualify for a first mortgage
  • When homebuyers take out a large mortgage, the bank requires monthly payments of "private mortgage insurance" until the loan's value is below 80% of the home price. When you participate with City First Homes, you borrow a smaller 'first mortgage' from a conventional bank, and as a result, you will not need to pay this fee

In return for the DPAL, homeowners agree that if they sell, they will keep 100% of equity payments, 100% of down payment, 100% of any value added to the home (e.g. if they added a kitchen, they recapture the appraised value of this improvement at time of sale), and 25% of home price growth. The rest of the home price growth remains with the home to keep it affordable for the next buyer. 'Shared-appreciation homeownership' offers several advantages:
  • If you are planning to wait several years to buy a home, City First Homes allows you to access the wealth-building benefits of homeownership much sooner. If you currently rent a home, you would build significantly more wealth if you owned a shared-appreciation home.
  • Some view shared-appreciation homeownership as a means to leave the cycle of renting, build wealth for 5-7 years, and transition to a home on the market.
  • City First Homes makes homeownership more affordable by lowering monthly mortgage costs and reducing down payment. City First Homes offers stability; unlike renting, your monthly payments won't unexpectedly rise. In addition, you can benefit from wealth-building and homeowner tax credits, which renters are excluded from.
  • If you currently commute from the suburbs, City First Homes will help you afford a home near your place of employment in Washington, DC
  • With City First Homes, you can buy a better value home in a great neighborhood at a lower cost.

Great Homes for Sale

City First Homes sells condos, single-family homes, and townhouses located in great neighborhoods near schools, employment hubs, and public transportation.
To view our Home Listings, click here.

Buyer Selected Shared-Appreciation Homes

Through this initiative, homebuyers can select a home they like in DC, and purchase it with a Down Payment Assistance Loan.

Support Services

Homebuyers access a range of free support services.

We invite you to contact us to learn more about the program, or join us at an Intro Session!