City of Alexandria Employee Homeownership Incentive Program (EHIP)

What is City of Alexandria Employee Homeownership Incentive Program (EHIP)?

City of Alexandria Employee Homeownership Incentive Program (EHIP) is a deferred second loan for homebuyers in Alexandria, Virginia, administered by City of Alexandria Office of Housing.

• The Employee Homeownership Incentive Program (EHIP) provides an interest-free, deferred-payment loan of $7,500 to $15,000 to eligible employees of the City of Alexandria and affiliated government agencies, to assist with down payment, closing costs, or other settlement costs on a home purchase within the City of Alexandria. Loan amount is determined by a three-tier household AMI structure, with prorated amounts for part-time employees. The loan is secured by a deed of trust, deferred with no monthly payments, and becomes repayable upon sale, transfer, or loss of primary residence status.
• 0% interest deferred loan.
• Tiered assistance $7,500-$15,000 based on AMI.
• No monthly payments required.
• Stackable with FHAP and SPARC.
• Covers down payment, closing costs, and other settlement costs.

How much assistance does it provide?

City of Alexandria Employee Homeownership Incentive Program (EHIP) offers between $7,500 and $15,000 in assistance.

• Award tiers: 3 tiers by AMI: $15,000 for households <=80% AMI; $11,500 for households >80% to <=120% AMI; $7,500 for households >120% AMI (no upper income cap stated; part-time employees receive prorated amounts).
• The program can be combined with City of Alexandria Flexible Homeownership Assistance Program (FHAP); Virginia Housing SPARC program.
• Amounts are the program's published maximums, not an offer — City of Alexandria Office of Housing determines any individual award.

Do you have to pay it back?

City of Alexandria Employee Homeownership Incentive Program (EHIP) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Sale, transfer, or cessation of primary residence occupancy.
• The assistance is recorded in Subordinate (secured/recorded against subject property) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Alexandria Employee Homeownership Incentive Program (EHIP) is open to buyers who will live in the home as their primary residence.

What are the income limits?

City of Alexandria Employee Homeownership Incentive Program (EHIP) limits household income to 120% of the area median income, which varies by county and household size.

• 2026 HUD income limits used for tier determination. Tier 1 (<=80% AMI, $15,000): 4-person $132,880. Tier 2 (80-120% AMI, $11,500): 4-person upper bound $199,320. Tier 3 (>120% AMI, $7,500): no published upper income cap in brochure.
• The limit applies to total household income, not only the borrower&rsquo;s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Alexandria Employee Homeownership Incentive Program (EHIP) caps the purchase price at $750,000.

• Eligible property types include Single Family, Townhouse, Condo, and Co-op.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

City of Alexandria Employee Homeownership Incentive Program (EHIP) names educators among the groups it serves.

• The program is also limited to employees of City of Alexandria; Alexandria City Public Schools; Alexandria Commonwealth Attorney; Alexandria Clerk of Court; Alexandria Sheriff; 18th Circuit Court; 18th General District Court; 18th Juvenile and Domestic Relations District Court; Alexandria Court Services Unit; Alexandria Law Library; Alexandria Registrar of Voters; Alexandria Public Library; Alexandria Health Department.
• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

City of Alexandria Employee Homeownership Incentive Program (EHIP) serves buyers purchasing in Alexandria, Virginia.

How do you apply?

Applications for City of Alexandria Employee Homeownership Incentive Program (EHIP) go through City of Alexandria Office of Housing, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Virginia Housing homebuyer education certificate required (available online). If combining with FHAP, must also complete City homebuyer education curriculum before submitting an offer..

2. 2

   Contact City of Alexandria Office of Housing to reserve funds

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

3. 3

   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.