hey prescott.
See what you qualify for

HIP Subordinate Deed of Trust

District of Columbia Housing Finance Agency (DCHFA) · Washington, District of Columbia

Last verified
See what you qualify forOfficial program site →
Assistance

$20,000

The maximum the program publishes — not an offer

Income limit

170% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 5 years

What is 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.

How much assistance does it provide?

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.

Do you have to pay it back?

HIP Subordinate Deed of Trust is forgiven after 5 years, so a buyer 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.

Who qualifies?

HIP Subordinate Deed of Trust is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a 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).

The program excludes

  • Households above 170% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

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.

Where does it apply?

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

How do you apply?

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.

  1. Contact District of Columbia Housing Finance Agency (DCHFA) to reserve funds

    Funds are reserved with the provider and are subject to availability.

  2. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

Other programs in Washington, District of Columbia

See every program in Washington, District of Columbia →

90-second match

Not sure which you qualify for?

Answer 9 questions and we'll match you to every program you can actually use — in about 90 seconds. No SSN, no credit pull.

Find my programs