MIPAP Funding is now available to qualified homebuyers. For first-time buyers wanting to purchase 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. Program funding availability is on a first come, first served basis to qualified homebuyers. The MIPAP loan acts as a 2nd Mortgage. The 1st Mortgage must be a conventional loan from a VHDA-approved lender. The maximum purchase price is $500,000 and the maximum loan amount is $112,500.
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%).
Borrower Eligibility Criteria and Notification List
- Homebuyers must meet the following eligibility criteria:
- Be a first-time homebuyer or a homebuyer who has not owned a home in the previous 3 years;
- Have a household income at or below 80% of the Area Median Income for their family size;
- Have a minimum credit score of 660;
- Be under contract for a home in Arlington County with a purchase price at or below $500,000;
- Provide a down payment equal to 1% (from prospective purchasers’ savings) or more of the purchase price set forth in the contract;
- Secure first trust lender financing such that the requested amount of MIPAP assistance does not exceed $112,500;
- Ratios of housing expenses to income and total debt to income must not exceed 45%.
- Potential homebuyers must complete the following steps in order to be considered an eligible household and placed on the County’s notification list:
- Submit a Homebuyer Assessment Form (en Espanol) to Housing Division staff member Odalis Barrios firstname.lastname@example.org
- Attend a 6-hour Virginia Housing Development Authority (VHDA) homeownership education course and obtain a certificate of completion (“Homeownership Workshop Certificate”); and
- Obtain a good faith pre-qualification letter from a VHDA-approved first trust lender willing to provide a conventional first trust mortgage.
For further information regarding this process, contact:
Homeownership Program Administrator
2100 Clarendon Blvd 7th Floor
Arlington, VA 22201