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.  

MIPAP acts as a subordinate second-trust loan providing down payment, principal reduction, and closing-cost assistance of up to 25% of the purchase price (capped at $120,000 for households of 1–3 persons and $130,000 for households of 4 or more persons) to eligible Arlington homebuyers. The 1st Mortgage must be a conventional loan from a lender approved by Virginia Housing.

Note: A full 25% of purchase price amount is not guaranteed. MIPAP review focuses on verifying the borrower’s true financial need so that assistance is targeted appropriately and supports sustainable homeownership.

MIPAP loan parameters

Loan term: 30 years

Interest rate: 0%

Monthly payment: No monthly payments over the course of the loan

Repayment of MIPAP loan: Due at 30 year term, resale or refinance

Shared Appreciation: At resale or refinance, 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: $650,000
• Maximum loan amount: Up to 25% of purchase price -- capped at $120,000 for households of 1–3 persons and $130,000 for households of 4 or more persons
• Minimum required borrower contribution to down payment: 1% of purchase price
• Minimum required borrower [liquid] financial reserves: 1 month of anticipated mortgage
• Maximum liquid assets: $50,000 (excludes retirement accounts and 1% borrower contribution)
• Housing expense ratio: 38%
• Debt-to-Income ratio (DTI): 45% 
• 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.