CPHD
Opportunities for First Time Homebuyers
FACT SHEET: MODERATE INCOME PURCHASE ASSISTANCE PROGRAM (MIPAP)
Household eligibility:
- First-time Homebuyers (have not owned a home in the previous three years)
- Household Income Limits (2011): Click here and scroll down to "Home Ownership Programs"
- Current employment or residency in Arlington is not required to qualify for MIPAP
This Factsheet has been developed to familiarize prospective homebuyers with Arlington County’s Moderate Income Purchase Assistance Program (MIPAP). To obtain a Homeownership Packet or to obtain additional information regarding this program, please visit the Department of Community Planning, Housing, and Development’s website: http://www.arlingtonva.us/Departments/CPHD/CPHDMain.aspx
Property eligibility/other requirements:
- Property must be located in Arlington County
- Eligible Property Types:
Single-family Properties (i.e. detached, duplex, townhouse)
Multi-family properties (i.e. condominiums, cooperatives) - Maximum purchase price: $362,790
- Maximum loan amount: $90,700
- Minimum down payment: 1% of the purchase price
MIPAP provides assistance to qualified first-time homebuyers of up to 25% of the purchase price towards the purchase of a home in Arlington. MIPAP assistance comes in the form of a deferred payment, no interest rate second trust loan. The MIPAP loan can cover all closing costs not paid by the seller (including pre-pays), up to a maximum of three discount points (to reduce the interest rate on the first trust mortgage), and a portion of the down payment.
Shared Appreciation Model: The shared appreciation model allows eligible low and moderate income first-time homebuyers to qualify for a subordinated loan of up to 25% of the purchase price. There is no interest or monthly loan repayments associated with this program. When a homeowner chooses to sell or refinance the property, the owner must repay the principal of the original subordinate loan, plus a proportionate share (up to 25%) of the difference between the original purchase price and the new sales price less the value of any seller’s concessions. This provides an incentive to the original homeowner to refinance as soon as it is feasible since, after the County is repaid, the homeowner would receive 100% of the appreciation going forward. When the home is sold, the County or its designee would have the option to purchase the home at its appraised value and add the unit to its stock of ADU ownership housing.
