A D.C. mother says her dreams of buying a home may be shattered after the District promised her funding but then backtracked, announcing this week that the program had run out of money.
She and her family had qualified for financial assistance through a program called Home Purchase Assistance Program (HPAP), which offers interest-free loans and help with closing costs for first-time and low-income homebuyers.
Previously, the maximum amount of funding was $80,000. D.C. upped that to $202,000 in fiscal year 2023.
After 20 years of renting, the mother, who did not want to show her face for privacy reasons, was excited to finally be under contract to buy a house for her family. The District promised her enough funding assistance that she could afford it.
“I just thought it was finally within reach. I thought it would be so nice. It’s gonna feel so good. I’ve had so many people encouraging me throughout the process,” she said.
But two days ago, the District informed her the money would not be coming through. On Thursday, the HPAP website announced “all available funds have been reserved.”
“I didn’t have any words, I was just crushed. It was emotional,” she said. “Within a few days I have to probably say I don’t have funding, and that puts us back to square one.”
And it’s not the first time this has happened. The program also ran out of money last year.
Mortgage lender Alexis Vining told News4 that she knew of dozens of buyers last year who were already under contract and were left scrambling.
“It’s heart-wrenching to be honest with you, because the phone calls of the people crying on the phone. They’ve literally done everything they were supposed to do,” Vining said.
News4 reached out to the D.C. Department of Housing and Community Development for comment, but we have not yet heard back.
Last year, they did tell News4 that their funds were “not limitless,” and they were working to secure additional funding.
Vining said all the buyers she knew of last year were able to get the money eventually. But this D.C. mom said she has no idea if that’ll happen for her.
To make things worse, her landlord is selling the house she rents, and she can’t find another home she can afford.
“I don’t have any other options,” she said. “I know that we have to move, but where do I go?”
