A Wealth of Funding for First-Timers

It is no secret that Washington area housing is some of the most expensive in the country, but there's an array of programs designed to assist first-time home buyers.

First-time buyers should get themselves on every list they qualify for, Doug Myrick, the Arlington County homeownership coordinator, said at a recent panel discussion on affordability programs hosted by First Horizon National Corp., a lender.

These plans aren't reserved just for the poorest people. In recent years, the lack of "workforce" housing has propelled many jurisdictions to create programs to assist those with moderate incomes as well as county or city government employees, including teachers and police officers. For example, , a state program in Arlington County could help a single person making up to $86,500 a year buy a residence priced as high as $408,100. Income restrictions vary among jurisdictions and programs.

And there are many programs to help people with low to moderate incomes. The Virginia Housing Development Authority makes annual allocations to local jurisdictions for its Sponsoring Partnerships and Revitalizing Communities (SPARC) loans and HomeStride loans.

Jurisdictions tailor the programs to meet local needs and housing prices. In some Virginia jurisdictions, a purchaser could couple a SPARC loan with a HomeStride loan, which is a deferred payment second mortgage of up to $25,000. Other localities, such as Manassas, don't allow programs to be combined. Many places have additional programs; Alexandria has at least three others. In Maryland, residents apply for loans through approved lenders who then in essence sell the loans to the Maryland Department of Housing and Community Development.

Montgomery County has programs parallel to the state's. Frederick County is working toward implementing several programs aimed at expanding affordable housing, , said Jenny Short, the county's director for Housing and Community Development.

The District has a few programs. One is aimed specifically toward government employees; another is for police officers. First-time buyers in the District who meet income requirements are also eligible for a federal tax credit of up to $5,000.

Other jurisdictions also offer special programs for local government employees such as teachers, police officers and firefighters, as well as to those who work for participating employers. For instance, Maryland's "House Keys 4 Employees" plan matches up to $5,000 where the participating employer and employee would chip in $5,000 each. Arlington County is also partnering with seven local employers for a similar program.

The would-be buyer must follow the jurisdiction's process, which often includes a prescreening followed by several steps. In many cases, the purchaser must take an accredited home buying class. These are given by the government or by approved companies and nonprofit groups.
The federal government defines a first-time buyer as someone who has not owned a home within three years. All the programs require that participants live in the house as their primary residence.

Washington Post
By Sarah Abruzzese

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