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The DC Housing Finance Agency (HFA) has a new program called DC Open Doors to help with down payment costs. Generally, such programs are targeted to low income residents, but DC Open Doors assists potential homeowners with incomes up to $123,395.

With an Area Median Income of $107K and an average home price over $450K, HFA realized that they needed a program to encourage homeownership and help people over the hurdle of a down payment. The $123,395 income limit only applies to the borrower, not the entire household.

DC Open Doors is a mortgage program offered through participating lenders, including Wells Fargo Bank and First Home Mortgage, among others. HFA offers residents a down payment assistance loan (DPAL) for 3% (with an HFA Preferred loan)…

Your personal finances are a critical part of securing a mortgage. One important part of your finances is your credit; a higher credit score can lead to a lower cost mortgage.

It’s important to have open lines of credit with no debt, which can increase your credit score. Lenders typically look for at least three open trade lines, such as a Mastercard or department store credit card. Paying your credit card bills on time leaves your credit report with “paid current” for each line of credit and no derogatory items or delinquencies. It’s also critical to show a consistent payment history over time, so keep your credit accounts long-term. 

On the other hand, payment obligations can reduce your ability to qualify for the mortgage amount you want.  If you…

Just last month, rapidly rising interest rates caused great concern among homebuyers that the days of record-low interest rates are over.

However, recent political turmoil combined causing economic uncertainty in the markets and, in a trend that many did not predict last month, mortgage rates have been declining.

Mortgage rates fell for the third week in a row last week, with the 30-year fixed mortgage rate falling to 4.47%, according to a weekly survey by Bankrate.com. Meanwhile, the average 15-year mortgage rate plunged to 4.64% and adjustable rate mortgages also dropped to 3.41%, with the 7-year ARM rate being about 3.77%.

But homeowners have seen that interest rate trends are not set in stone and the quickly rising interest rates in the past…

According to a recent study, it’s 31% less expensive to own a home rather than rent in the DC metro area.

The study examined identical homes for sale and rent to calculate average prices across the metro area. The study also took into account the costs associated with homeownership including closing costs, maintenance, insurance, taxes, and more. For rentals, the study included the cost of renter’s insurance and a security deposit.

The underlying assumptions that make it 31% cheaper to buy than rent in DC are the ability to get a 30-year fixed-rate mortgage at 4.8% with a 20% downpayment, deduction itemization on federal taxes, a 25% tax bracket (income between $72,500 and $146,400 for married joint filers), and plans to stay in the home for seven…