Moderate-Income Purchase Assistance Program (MIPAP)

MIPAP is OPEN to eligible first-time homebuyers purchasing in Arlington County.

For first-time buyers (see definition of "first-time homebuyer" under Eligibility Criteria) purchasing a home in Arlington, this program provides a deferred-payment, no-interest loan of up to 25% of the home purchase price. The loan may be used to cover a portion of the down payment and all closing costs. The MIPAP loan acts as a 2nd Mortgage. The 1st Mortgage must be a conventional loan from a lender approved by VHDA (Virginia Housing Development Authority).

MIPAP uses a shared appreciation model, which means there are no interest or monthly loan payments over the course of the loan. Instead, when a homebuyer chooses to sell or refinance the property, an appraisal will determine if the property has increased in value. If the property value has increased, the homebuyer would owe the County the original loan amount plus a proportionate share of the net appreciation (up to 25%).

MIPAP and Affordable Dwelling Unit (ADU) Income Limits

*Limits reflect gross total of all household income sources. Income limits are published (normally within the month of April) annually by the Department of Housing and Urban Development (HUD) and are effective immediately upon publication.

Eligibility Criteria

• First-time homebuyer (defined as a buyer who has not owned a home in the previous 3 years)
• Property must be located in Arlington County
• Eligible property types: 
  • Single-family properties (i.e., detached, duplex, townhouse)
  • Multi-family properties (i.e., condominiums)
• Maximum purchase price: $500,000
• Maximum loan amount: Lesser of 25% of purchase price, or $112,500
• Minimum down payment: 1% of purchase price
• Minimum credit score: 660
• Debt-to-Income ratio (DTI): 45% 
• MIPAP loan terms: 30-year, 0% interest, no monthly payments
• MIPAP is a 2nd trust loan. Potential borrowers must obtain approval for a 1st trust loan from an approved mortgage lender prior to applying. 

Process

1. Register and attend a free Virginia Housing Homebuyer Class (703-527-3854) online or in-person.
2. Obtain 1st trust pre-approval from an approved lender.
3. Download and complete the MIPAP Pre-Approval Application (located above under Resources) and gather all required documentation. 
4. Contact the Arlington County Housing Division to request access to the secure document portal. Submit MIPAP pre-approval application and all required documents to the portal within 48 hours of receiving portal access.
5. Application review may take up to 60 days.
6. If pre-approved, borrower will receive a MIPAP pre-approval certification indicating the maximum loan amount. 
7. Lender submits ratified contract to the Housing Division. Settlement date must be 30 or more days from the Housing Division's receipt of the ratified contract.