MIPAP provides assistance to qualified first-time homebuyers of up to 25% of the purchase price towards the purchase of a home in Arlington. MIPAP assistance comes in the form of a deferred payment, no interest rate second trust loan. The MIPAP loan can cover all closing costs not paid by the seller (including pre-pays), up to a maximum of three discount points (to reduce the interest rate on the first trust mortgage), and a portion of the down payment.
Steps in the Application Process:
Shared Appreciation Model: The shared appreciation model allows eligible low and moderate income first-time homebuyers to qualify for a subordinated loan of up to 25% of the purchase price. There is no interest or monthly loan repayments associated with this program. When a homeowner chooses to sell or refinance the property, the owner must repay the principal of the original subordinate loan, plus a proportionate share (up to 25%) of the difference between the original purchase price and the new sales price less the value of any seller’s concessions. This provides an incentive to the original homeowner to refinance as soon as it is feasible since, after the County is repaid, the homeowner would receive 100% of the appreciation going forward. When the home is sold, the County or its designee would have the option to purchase the home at its appraised value and add the unit to its stock of ADU ownership housing.
|Arlington County Housing Information Center|
|Arlington Home Ownership Made Easier (AHOME)|
|Arlington Housing Corporation (AHC)|