First-Time Homebuyer Programs 2025: How to Get Up to $25K in Free Money for Your DC Metro Home

Buying your first home in the DC Metro area just got more affordable. Multiple government programs are offering substantial financial assistance, from $25,000 in Prince George's County to up to $202,000 in the District itself, to help first-time buyers overcome down payment and closing cost barriers in 2025.

Key Takeaways

• HPAP offers up to $202,000 in interest-free down payment assistance plus $4,000 for closing costs in DC

• DC Open Doors provides 0% deferred loans for both residents and non-residents with flexible income limits

• Prince George's County expanded its $25,000 program specifically for new homebuyers in 2025

• Credit score requirements start at 640 across most programs, with required homebuyer education courses

• Income limits vary by household size but generally accommodate middle-class earners up to 130% of area median income

District of Columbia: The Most Generous Assistance Available

Home Purchase Assistance Program (HPAP)

The District's flagship program offers the most substantial assistance in the region. HPAP provides qualified first-time homebuyers up to $202,000 in interest-free, deferred down payment financing, plus an additional $4,000 toward closing costs. This isn't a grant, it's a 0% interest loan that requires no monthly payments and stays deferred until you sell, refinance, or pay off your home completely.

To qualify for HPAP in 2025, you must meet several requirements:

• First-time homebuyer status (no property ownership in past 3 years)
• Purchase price limits around $647,000 for most areas
• Maximum income of approximately $91,200 for single buyers (80% of area median income)
• Minimum credit score of 640
• Complete an approved 8-hour homebuyer education course

The program particularly benefits moderate-income buyers who earn too much for traditional assistance but still struggle with DC's high home prices.

DC Open Doors Program

DC Open Doors casts a wider net than HPAP, serving both DC residents and non-residents, plus first-time and repeat buyers. The program provides low-cost mortgages combined with 0% deferred down payment loans, though with different repayment terms than HPAP.

Key features include:

• Maximum household income up to 130% of area median income
• Maximum loan amount of $1,209,750
• 30-year repayment requirement on the deferred loan (unlike HPAP's indefinite deferral)
• More flexible for borrowers who don't meet HPAP's stricter requirements

DC4ME: Special Benefits for Government Employees

DC government employees access additional perks through DC4ME, including reduced mortgage interest rates and up to 3% of the home's purchase price in down payment assistance as a 0% deferred loan.

The program offers:

• Maximum household income of $216,580
• Same $1,209,750 loan limit as DC Open Doors
• 30-year repayment term on assistance loans
• Must have at least one DC government employee as a borrower

Maryland and Virginia: Regional Options

Prince George's County's $25K Program

Prince George's County expanded its homebuyer assistance program in 2025, offering up to $25,000 in down payment and closing cost assistance. While details are still emerging, this program specifically targets first-time buyers in one of the region's more affordable counties.

Montgomery County and Fairfax Programs

Both Montgomery County and Fairfax County offer their own assistance programs with varying benefits:

• Montgomery County provides down payment loans up to $40,000 for qualified buyers
• Fairfax County offers the Workforce Housing Program with assistance based on income and purchase price
• Both require homebuyer education and have specific income limits

Understanding the Application Process

Step 1: Get Pre-Qualified

Start by connecting with a participating lender who works with these programs. Over 50 lenders participate in DC Open Doors, including major banks and credit unions. We can connect you with experienced lenders who understand these programs inside and out.

Step 2: Complete Homebuyer Education

All programs require an 8-hour HUD-certified homebuyer education course. These are available online or in-person and cover topics like:

• Understanding mortgage products and terms
• Budgeting for homeownership costs
• Shopping for homes and making competitive offers
• Avoiding predatory lending practices

Step 3: Gather Required Documentation

Programs typically require:

• Two years of tax returns
• Recent pay stubs and bank statements
• Employment verification letters
• Identification and Social Security cards for all borrowers

Step 4: Submit Your Application

The application process takes 45-60 days on average. You'll work with your lender and potentially a community-based organization to ensure all requirements are met.

Maximizing Your Benefits: Strategic Considerations

Combining Programs When Possible

Some buyers can layer benefits by using federal programs (FHA loans, VA loans) alongside local assistance. For example, a DC government employee might use:

• FHA financing for a low down payment loan
• DC4ME for reduced interest rates
• HPAP or DC Open Doors for down payment assistance

Timing Your Purchase

Program funding can run out during busy buying seasons. HPAP funds for Fiscal Year 2026 became available October 1, 2025, so applying early in the fiscal year often provides better chances of approval.

Understanding Repayment Obligations

The difference between HPAP's indefinite deferral and other programs' 30-year terms can significantly impact your long-term financial picture. If you plan to stay in your home for decades, HPAP's structure may save you thousands in avoided payments.

Current Market Context: Why These Programs Matter More Than Ever

With DC Metro area median home prices reaching $741,000 as of April 2025, a 5.9% increase from the previous year, these assistance programs provide critical support. The typical 20% down payment on a median-priced home would require nearly $148,000 in cash, making programs like HPAP essential for middle-class buyers.

Interest rates in late 2025 have stabilized in the mid-6% range, making the reduced rates available through some programs particularly valuable for long-term affordability.

Ready to explore your first-time buyer options? Connect with our team for a personalized consultation on which programs best fit your situation and goals.

Frequently Asked Questions

Can I use these programs to buy a condo or townhouse?

Yes, most programs work for condos, townhouses, and single-family homes as long as they meet program guidelines and you'll use the property as your primary residence.

What happens if I sell my home before the deferred loan term ends?

For HPAP, you repay the full assistance amount when you sell, refinance, or pay off the mortgage. For DC Open Doors and DC4ME, you repay the remaining balance based on the 30-year amortization schedule.

Do I need to work in DC to qualify for DC programs?

Not for most programs. DC Open Doors serves non-residents, and HPAP only requires that you purchase within the District. DC4ME specifically requires DC government employment.

Can I buy in Maryland or Virginia and still access DC programs?

No, DC programs require purchasing property within the District. However, Maryland and Virginia have their own county and state-level assistance programs.

What credit score do I really need to qualify?

Most programs list 640 as the minimum, but competitive applicants typically have scores of 680 or higher. Some flexibility exists for borrowers with strong income and employment history.

Written by Mascotti & Company, a DMV real-estate team with Keller Williams Capital Properties.

Mascotti & Company provides equal professional services without regard to race, color, religion, sex (including gender identity and sexual orientation), disability, familial status, or national origin.