Arlington County's Moderate Income Purchase Assistance Program, known as MIPAP, will lend an eligible first-time buyer up to 25% of the purchase price. The loan carries no interest and no monthly payment. It can be used on homes priced up to $650,000. The same program page also says settlement cannot happen until at least 30 days after the County Housing Division receives your ratified contract. Getting pre-approved in the first place can take up to 60 days. Most coverage focuses on the higher price ceiling. At these price points, the bigger factor for buyers is the calendar.
The clock starts before you find a home
MIPAP runs in a fixed order, and the order matters. According to the County's program page, the steps are:
- Attend a free Virginia Housing homebuyer class.
- Get first-trust pre-approval from a Virginia Housing-approved lender. The first mortgage must be a conventional loan.
- Complete the MIPAP pre-approval application and upload your documents within 48 hours of getting portal access.
- Wait for the review, which can take up to 60 days.
- Receive a pre-approval certificate showing your maximum loan amount.
- Have your lender send the ratified contract to the Housing Division, with settlement set for 30 or more days after the County receives it.
Steps one through five can all happen before you write an offer. A buyer who starts them early shows up with a certificate already in hand. A buyer who waits until they find the right home can be two months behind before the contract clock starts.
The program has other limits. It caps the loan at $120,000 for households of one to three people and $130,000 for households of four or more. It requires a 1% down payment from the borrower, one month of mortgage payments in liquid reserves, a 38% housing-expense ratio and a 45% debt-to-income ratio. It also caps liquid assets at $50,000, not counting retirement accounts or the 1% contribution. Income limits for 2026 are $93,040 for one person, $106,320 for two and $132,880 for four. The County also says a full 25% is not guaranteed, because the review looks at each borrower's actual financial need.
One more thing to know before you apply. The live page shows the new $650,000 and $120,000/$130,000 limits. The downloadable 2026 application and fact sheet still list the old $500,000 price limit, the old $112,500 loan cap and a 660 minimum credit score. A September 10, 2026 update to the Arlington Housing Commission described dropping the credit score minimum as a proposed FY27 change scheduled for County Board consideration that month. Ask the Housing Division which version applies to your file.
What $650,000 buys in Arlington is mostly a condo
The price limit went from $500,000 to $650,000. The County's own slide explained that several of its affordable dwelling units already cost more than $500,000. The higher ceiling still lands almost entirely in one kind of housing. MarketStats data for August 2026 shows how lopsided the market below the cap is:
| Arlington County, August 2026 | Condo/co-op | Townhouse and other attached |
|---|---|---|
| Sales under $600,000 | 67 of 94 | 3 of 17 |
| Active listings under $600,000 | 241 of 298 | 10 of 34 |
| Sales $600,000–$799,999 | 13 | 4 |
| Active listings $600,000–$799,999 | 33 | 10 |
The report's price bands jump from $599,999 straight to $799,999, so they can't show exactly how many homes sold at or under $650,000. July 2026 looked the same, with 75 of 106 condo sales under $600,000 and only three attached or townhouse sales in that range. The program allows detached homes, duplexes, townhouses and condos. In practice, most MIPAP buyers will end up looking at condos.
The condo building now has to pass its own review
MIPAP requires a conventional first mortgage. Lenders usually sell those loans to Fannie Mae or Freddie Mac, and on August 3 both changed their condo rules. CNBC reported that the limited, or streamlined, review that used to cover some condo buildings is gone. Unless a project qualifies for a waiver, many sales now need a full review of the association's finances, reserves, insurance and building condition.
Dawn Bauman, CEO of the Community Associations Institute, told CNBC that roughly 40% of financed condo purchases had used the limited review. She expects the change to lengthen approvals. She also said some buildings that qualified under the old review may not qualify under the new one, which she noted does not mean a building is unsafe. There is some good news. The Mortgage Bankers Association said that once a project passes a full review, it stays approved in the Fannie and Freddie systems and doesn't need to be reviewed again for every loan.
For a MIPAP buyer, that means two separate approvals running side by side after the contract is signed. The County's 30-day settlement floor is one. The lender's review of the building is the other. If a building fails, a portfolio lender may still make the loan, often with a larger down payment or a higher rate, according to CNBC. MIPAP only accepts conventional loans from Virginia Housing-approved lenders, and the County materials don't say whether a portfolio loan meets that requirement. Ask your lender about it early. CNBC also reported a rule taking effect Jan. 4 that will generally require associations to put at least 15% of their annual budget into reserves, up from 10%. When you go through the condo documents, compare the reserve line against that number.
A softer condo market helps on price, but cash still closes faster
The timing pressure comes during a stretch when Arlington condos are getting cheaper. The average condo sale price in August 2026 was $509,053, down 9.65% from a year earlier, and condo sales slipped to 94 from 103. Across Northern Virginia, NVAR reported August 2026 condo inventory up 44.8% from a year earlier, to 1,325 listings. ARLnow reported that homes countywide sold for 97.7% of their original list price in August and averaged 32 days from listing to contract. It described a softer market expected through the rest of the year.
That gives a MIPAP buyer more homes to choose from and more room to negotiate. The 30-day settlement floor and the condo review don't speed up because the market is slower, though. Bauman told CNBC that delays in the approval process could give cash buyers an edge, since they can close sooner. A seller choosing between offers at similar prices may care a lot about the settlement date. A buyer who has the MIPAP certificate in hand and already knows whether the building passed a full review can offer a firmer date.
Where Virginia Housing products fit alongside MIPAP
Virginia Housing's own first-time buyer limits in Northern Virginia, effective August 1, 2026, are $148,000 in household income for one to two people and $174,000 for three or more under its grant programs, with an $800,000 sales price cap. Those are the same figures as its 2025 flyer, so this year's update didn't raise anything for this region. MIPAP's income limits are lower, so MIPAP's eligibility rules are the ones that will decide your case.
Combining programs comes down to lien position. The Virginia Housing Plus Second Mortgage must hold the second-lien spot. Other approved assistance is allowed only in third position. Arlington describes MIPAP as a second-trust loan, and none of the County materials say whether it can sit in third. The Virginia Housing DPA Grant is 2% toward the down payment. It requires a 1% borrower contribution and a Virginia Housing first mortgage. It can't be combined with Plus Second, though it can be combined with other acceptable down payment assistance from outside Virginia Housing. On paper, that leaves a possible path to using the grant with MIPAP on a Conventional Bond first mortgage. Neither program's documents name the pairing, so confirm it with an approved lender and the County before you plan your budget around it.
How the neighboring counties set up their programs
Fairfax County announced its own first-time buyer loan on April 14, 2026, funded by a Virginia Housing grant. It offers up to $50,000 to households at or below 80% of area median income, for example $131,100 for a household of four. Funds are limited and handed out first come, first served. Loudoun County's DPCC program offers up to $70,000 or 10% of the price, whichever is less, with a 620 minimum middle credit score. The loan is forgiven over 15 years. MIPAP's caps of $120,000 and $130,000 are the largest of the three. Arlington is also the only one of these counties whose own program rules set out a 30-day minimum before settlement.
A few straight answers
Does MIPAP have to be repaid? Yes. The loan is due at the end of its 30-year term, or earlier if you sell or refinance. If the home has gained value, you also owe the County a proportionate share of the net appreciation, up to 25%.
Who counts as a first-time buyer? Anyone who hasn't owned a home in the previous three years.
Is the program open right now? The County's page says MIPAP is open to eligible first-time buyers. It doesn't list an annual budget or how much money is left.
If you're thinking about using MIPAP for an Arlington condo this fall, the timing has to work alongside the price. That means getting the County certificate, the lender's building review and the settlement date to line up before you make an offer. T&G Real Estate Advisors can help you plan that sequence. If you own a condo you're thinking of selling, Request a Home Valuation and we'll look at how buyers using assistance programs fit into your pricing and timeline.
