HIP Subordinate Deed of Trust

HIP Subordinate Deed of Trust is a forgivable loan for homebuyers in Washington, District of Columbia, administered by District of Columbia Housing Finance Agency (DCHFA). The HIP Subordinate Deed of Trust (HIP) provides eligible first-time and repeat homebuyers up to $20,000 in fully forgivable financing for down payment and closing cost assistance, secured by a subordinate deed of trust. It is available only when purchasing a workforce unit in Housing Investment Platform for-sale projects supported by DCHFA's investment in affordable homeownership in collaboration with emerging developers. Up to $20,000 in fully forgivable down payment and closing cost financing that reduces the amount needed for a first trust mortgage.

HIP Subordinate Deed of Trust offers up to $20,000 in assistance. Amounts are the program's published maximums, not an offer — District of Columbia Housing Finance Agency (DCHFA) determines any individual award.

HIP Subordinate Deed of Trust is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale or transfer (including gift), property ceasing to be borrower's primary residence, or refinance of the first trust mortgage within five years of closing; on sale within the initial five-year period, equity proceeds are shared between borrower and DCHFA per a distribution schedule. The assistance is recorded in subordinate position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

HIP Subordinate Deed of Trust is open to homebuyers who will live in the home as their primary residence. Only available when purchasing a designated workforce unit in a DCHFA Housing Investment Platform (HIP) for-sale project. Forgivable financing is lost (becomes due) if within five years the property is sold or transferred (including by gift), is no longer the borrower's primary residence, or the first trust mortgage is refinanced. If the property is sold within the initial five-year period, equity proceeds are split between borrower and DCHFA per a distribution schedule provided at closing (shared-appreciation feature on early sale). Borrower must have secured primary financing evidenced by a First Deed of Trust Note. Open to both DC residents and non-residents. Income is based on BORROWER's income only (not household).

HIP Subordinate Deed of Trust limits household income to 170% of the area median income, which varies by county and household size. Maximum borrower income may not exceed 170% of Area Median Income (AMI), with a maximum income of $275,400. Income is based on borrower income only. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

HIP Subordinate Deed of Trust serves homebuyers purchasing in Washington, District of Columbia.

Applications for HIP Subordinate Deed of Trust go through District of Columbia Housing Finance Agency (DCHFA), which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.