The Greater Washington Urban League has launched a new program to provide down payment assistance to low and moderate income homebuyers in purchasing a home. The Urban League Home Purchase Assistance Program provides down payment assistance, closing cost or debt repayment assistance to the homebuyer in the form of gift funds, wired directly to the settlement agent on the day of settlement.

The gift will be up to 10 percent of the purchase price of the home, and it does not have to be repaid. Homebuyers must agree to return any gift funds that are not used, and must also agree to return all gift funds if the sale does not close on the scheduled date.

To use this program, homebuyers must contract to purchase a home enrolled in the Urban League Home Assistance Program and qualify for a mortgage that allows gift funds. THE PROGRAM IS OPEN TO ALL ELIGIBLE HOMEBUYERS, NOT JUST FIRST-TIME BUYERS.

Says Greater Washington Urban League President Maudine R. Cooper, “We have a long record of achievement in assisting homebuyers and strengthening community. This program will help many persons who work and can pay a mortgage, but have had difficulties in saving for a down payment.”

How does the program work? Buyers must be eligible for a qualified loan program that allows a charitable organization to provide gift funds toward the buyer’s down payment, closing cost or debt repayment; and the home must be purchased from a builder or seller who has enrolled in the program.

The down payment comes from a pre-existing pool of money raised by the League. However, the builder or seller must pay a service fee to the League. “Sellers in the program have a larger number of buyers to pull from, thereby decreasing the marketing time,” said League Housing Director Jacquelyne Ward-Richardson. “Thus, homes sell faster, and more for full price. This is achieved by attracting a larger number of eligible buyers to properties that offer the program as an incentive.”

For more information about the program, contact the League’s Prince George’s County Office at 301-985-3519.

In November 1997, the League officially opened an office in Hyattsville, MD to better serve suburban Maryland constituents. Designated as a homeownership center for first-time homebuyers, the office counsels persons who need guidance as they seek to attain and maintain homeownership.

In partnership with First Union Bank, the Housing Division continues to offer homebuyer education workshops. Participants learn about applying for a loan, preparing a budget, and resolving credit problems. These and other workshops are offered at the League's headquarters building and in the League's Prince George's County Office. For more information on homebuyer education workshops, call the Housing Division at (202) 265-8200.