Arlington Homebuyers’ Assistance Program (AHAP)

Hey there! I know buying your first home can feel like a daunting journey, but the City of Arlington has a fantastic program designed to give you a helpful boost: the Arlington Homebuyers’ Assistance Program (AHAP). Let’s break it down together so you can see how this might be the perfect stepping stone toward your dream home.

What is AHAP?

AHAP is a program that offers up to $20,000 in down payment and closing cost assistance to first-time homebuyers who meet certain income criteria. This assistance comes as a no-interest, deferred loan that’s forgivable over a period of up to 10 years, provided you continue to live in the home.

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Who Funds This Program?

The program is funded through the U.S. Department of Housing and Urban Development (HUD) and is administered by the City of Arlington in partnership with Housing Channel, a local nonprofit organization dedicated to affordable housing solutions.

Am I Eligible?

To qualify for AHAP, you’ll need to meet the following criteria:

  • First-Time Homebuyer: You haven’t owned a home in the past three years.
  • Income Limits: Your household income doesn’t exceed 80% of the area median income (AMI). As of June 15, 2023, a family of four should have an income of $76,550 or less.
  • Employment History: You have a continuous employment history for the past six months and verifiable employment for at least one year.
  • Creditworthiness: You can qualify for a mortgage loan and demonstrate responsible credit behavior.
  • Personal Investment: You’re able to contribute at least $1,000 toward the purchase, which can include earnest money and other costs paid before or at closing.
  • Homebuyer Education: You complete a HUD-approved Homeownership Training course offered by Housing Channel or another approved agency.

What Are the Benefits?

  • Financial Assistance: Receive up to $20,000 to help with down payment and closing costs, making homeownership more accessible.
  • Forgivable Loan: The assistance is structured as a no-interest, deferred loan that’s forgiven over a 5 to 10-year period, as long as you remain in the home.
  • Homeownership Education: Gain valuable knowledge through required education courses, preparing you for successful, long-term homeownership.

Are There Any Drawbacks?

  • Occupancy Requirement: You must use the home as your primary residence for the duration of the affordability period (up to 10 years). Renting or leasing the property during this time is not allowed and could result in the loan becoming due.
  • Resale Restrictions: Selling or transferring the property before the end of the affordability period may require repayment of the unforgiven loan balance.
  • Property Standards: The home must meet specific property standards, and any required repairs must be completed at the seller’s expense before closing.

How Do I Apply?

  1. Complete Homebuyer Education: Enroll in and complete a HUD-approved Homeownership Training course through Housing Channel.
  2. Get Mortgage Pre-Approval: Work with a participating lender to secure pre-approval for a mortgage loan.
  3. Submit Application: Gather all required documentation and submit a complete application to Housing Channel.
  4. Property Inspection: Once you have a property under contract, it will undergo an inspection to ensure it meets AHAP property standards.
  5. Finalize Purchase: Upon approval, proceed with closing, where AHAP funds will be applied toward your down payment and closing costs.

For more detailed information and to access application materials, visit the Housing Channel’s website.

Embarking on the path to homeownership is a significant milestone, and programs like AHAP are here to make that journey a bit smoother. If you think you might qualify, reaching out to Housing Channel could be your next best step toward owning your first home in Arlington.

 

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