Help for Struggling Homeowners
If you are in danger of foreclosure, the first thing to do is to call the loss mitigation department at your mortgage company. This information should be provided on your mortgage statement or the company’s website. They may be able to help you with loan modification of a repayment and a forbearance plan.
- For help with Forbearance, Foreclosure, State and Federal funding updates, the Latino Economic Development Center may be able to help. Contact KSerfis@ledcmetro.org or (703)527-3854
- HUD Housing Counseling Agencies can provide advice on mortgage defaults and foreclosures. Search the list of agencies for each state. You may search more specifically for a reverse mortgage counselor or if you are facing foreclosure, search for a foreclosure avoidance counselor.
- If you need more assistance, call the Department of Human Services at 703-228-1300.
The Housing Division provides programs and services to turn the dream of homeownership into a reality for moderate income households. Housing programs can help first-time homebuyers plan, purchase and maintain a new home in Arlington County.
Moderate Income Purchase Assistance Program (MIPAP)
MIPAP is OPEN to to eligible first-time homebuyers purchasing in Arlington County.
For first-time buyers purchasing a home in Arlington, this program provides a deferred-payment, no-interest loan of up to 25% of the home purchase price. The loan may be used to cover a portion of the down payment and all closing costs. The MIPAP loan acts as a 2nd Mortgage. The 1st Mortgage must be a conventional loan from a lender approved by Virginia Housing (formerly Virginia Housing Development Authority).
MIPAP uses a shared appreciation model, which means there are no interest or monthly loan payments over the course of the loan. Instead, when a homebuyer chooses to sell or refinance the property, an appraisal of the property will be done to determine if the property has increased in value. If the property value has increased, the homebuyer would owe the County the original loan amount plus a proportionate share of the net appreciation (up to 25%).
Affordable Dwelling Units
An Affordable Dwelling Unit (ADU) is a property made available to qualified moderate-income households and are subject to Restrictive Covenants that require it be affordable in perpetuity. The ADU program currently consists of 55 units. When new construction units become available, they are sold through random selection lottery only.
- Property values and tax assessments align with annual percentage increases in Area Median Income (AMI). Property must be sold and resold to moderate-income households for the restricted price.
- At re-sale: Value of home will be the original purchase price plus annual increases in Department of Housing And Urban Development’s (HUD) Area Median Income (AMI).
- 2020 Purchase price $215,000
- AMI increase in 2021 by 3% ($215,000 * .03)
- 2021 Sales price = $221,450 (Note: This is only an example. ADUs are not required to be sold within one year of purchasing).
*Coming FALL/WINTER 2021*
New Construction project at 2000 Clarendon
- Two- 1 bedroom units (price $306,000)
- Two- 2 bedroom units (price $360,000)
*Coming FALL/WINTER 2021*
New Construction project at Axumite Village
- Four- 2 bedroom units (price $360,000)
Previous ADU Projects
Low-Interest Mortgage Program (SPARC)
SPARC funds are fully expended. New allocations are expected in Late Summer 2021.
This program assists moderate income homebuyers with a 1% interest rate reduction on loans obtained through Virginia Housing. Work with your lender to determine eligibility.
Prevention Steps and Counseling
Free counseling and other services are available to help homeowners avoid foreclosure and stay in their homes. Legal services, tax relief and other financial assistance programs are available to eligible homeowners, as well as assistance with food and other basic needs during times of financial hardship. For information on these services, contact the Latino Economic Development Corporation www.ledc.com
Rebuilding Together assists income-eligible homeowners with home maintenance and repair. The program brings volunteers, communities and resources together to repair and rehabilitate homes free of cost for those in need, including the elderly, persons with disabilities, military veterans and families with children.