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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 14. HOUSING |
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Chapter 14-92. HOUSING CHOICE VOUCHER/HOME OWNERSHIP ASSISTANCE PROGRAM (HCV/HOAP) |
Section 14-9210. ELIGIBLE TYPES AND TERMS OF FINANCING
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9210.1Family Responsibility. The household is responsible for securing their own mortgage loan financing from a Participating Lender.
9210.2Permitted Types of Loans: The following types of loans are acceptable:
(a)Primary fixed rate mortgage loans that are:
(1)Insured by the FHA;
(2)Guaranteed by VA or other governmental entity;
(3)Insured with private mortgage insurance, if: (i) The terms comply with secondary mortgage market underwriting of Fannie Mae, Freddie Mac, or the Federal Home Loan Bank; or
(4)Obtained through any other local or federal governmental lending program.
(b)Subordinated mortgage loans, using
(1)Local Community Development Block Grant funds; or
(2)Other subsidized subordinate funding available in conjunction with the HCV/HOAP.
9210.3Prohibited Loans. The following types of financing are considered high risk and are not approved for use:
(a)Balloon payments;
(b)Adjustable rate mortgages;
(c)Loans to persons in addition to those listed in the household's HCV/HOAP application;
(d)Owner financing except as may be approved on a case by case basis; and
(e)Any other type of loan that may come to the attention of HCV/HOAP that demonstrates a high-risk factor, as may be determined on a case by case basis.
9210.4Minimum Down Payment. The minimum down payment requirements are:
(a)The Family shall contribute a minimum of three (3%) percent of the purchase price of the home as a down payment.
(b)The source of the down payment (3%) funds can include, but is not limited to, the following:
(1)Gifts from family members or friends;
(2)Loans from family members or friends;
(3)Loans from any governmental program secured by a subordinate lien.
9210.5Delinquency Notification by Lenders. Participating lenders shall agree to notify HCV/HOAP of any mortgage payment delinquency, in order to initiate prompt intervention and to avoid serious mortgage delinquency/default.