In September 2010, the District of Columbia Housing Finance Agency (DCHFA) started the DC HomeSaver Program. The program is part of the Hardest Hit Fund and offers foreclosure prevention services for District of Columbia homeowners. A sliding scale of eligibility offers mortgage payment assistance up to 24 months and/or up to $60,000.
Eligibility for the DC HomeSaver program
You must be a District of Columbia homeowner. You must live in your home, and you must be on the mortgage, deed, or deed of trust. And you must be receiving unemployment benefits or have experienced a 10 percent reduction in income. You must be able to sustain future mortgage payments on your own. And your outstanding mortgage balance must be less than $729,750. Finally, you must not be in an active bankruptcy. There are other eligibility requirements for the two different phases of the program. The program will cease paying out funds on December 31, 2020.
HomeSaver Mortgage Payment Assistance Program
There are two components to this program: Lifeline Assistance and Mortgage Assistance. Depending on your eligibility, DC will offer you up to 24 months of mortgage payment assistance to a maximum of $60,000.
HomeSaver Restore Assistance Program
Phase II of the HomeSaver program (the Restore Assistance Program) simplifies the HomeSaver program. In Phase II, DC will offer you a one-time payment, up to $60,000, to “catch-up” on delinquent property-related expenses. Your loan will be forgiven at a rate of 20 percent a year and on the 5th anniversary date of closing, the loan will be forgiven and the lien removed. The loan is only repayable if you sell, refinance, or move within the first five years.
Call the DC HomeSaver Program to discuss your eligibility
As of December 2017, the DC HomeSaver Program provided nearly $16 million in assistance to 807 unique borrowers. If you believe you may be a candidate for the program, call the foreclosure prevention hotline at (202) 777-1690.