Only available to employees of eligible DC employers
Down payment loan must be repaid in 30 years, even if you don’t sell or refinance the home.
Deferred loan can be used only for down payment costs
Washington, D.C. down payment assistance and grants
The Open Doors and DC4ME loan programs come with down payment assistance, as mentioned above. Here are some other options.
DCHFA Home Purchase Assistance Program (HPAP)
DCHFA’s Home Purchase Assistance Program (HPAP) provides first-time homebuyers with up to $202,000 for a down payment and up to $4,000 for closing costs, packaged as a separate 0-percent loan. Note that HPAP loans are prioritized for borrowers with very low-to-moderate incomes, or who are elderly, handicapped, disabled or displaced. Borrowers must be a D.C. resident or have lived there as an adult for at least three years.
Maximum home loan amount cannot exceed $1,089,300
Must be a first-time homebuyer
Household income must be within the very low-to-moderate income level, based on DHCD’s standards
Borrower must have a good credit rating
Must apply through a community-based organization (CBO)
Pros:
Provides down payment and closing cost assistance
For low-income borrowers, repayment is deferred until you sell the home.
Cons:
Moderate-income borrowers must make a monthly payment.
As of February 13, 2025, all available funds for the Home Purchase Assistance Program (HPAP) have been reserved. Not until October, the start of the new fiscal year, will new funding be available. Check the website for updates.
Department of Housing and Community Development (DHCD) Employer-Assisted Housing Program (EAHP)
Under the Employer-Assisted Housing Program, eligible D.C. government employees can receive up to $5,000 in matching down payment funds, as well as a deferred, 0-percent loan of up to $20,000. First responders and educators may qualify for extra assistance.
Must be an employee of a D.C. government agency (includes public schools and public charter schools)
Must have been employed in good standing for at least one year (not required for first responders and teachers)
Must not have owned a primary residence in D.C. within the past three years
Pros:
Open to single-family homes, condos and co-op units in D.C.
Can be used for down payment and closing costs
Loan is deferred until the borrower sells the home, moves out or performs a cash-out refinance
No maximum income or minimum contribution requirement
Cons:
Available only to employees of eligible D.C. agencies
Other Washington, D.C. first-time homebuyer loans
In addition to DCFHA or DCHD programs, Washington, D.C. residents might be eligible for other widely available first-time homebuyer programs, such as FHA, VA and USDA loans. Government-backed programs like these can have more flexible qualifications than conventional mortgages, and many lenders offer them. Here’s a quick overview of each program:
FHA loans: These mortgages are insured by the Federal Housing Administration (FHA). They have a minimum down payment requirement of 3.5 percent for those with credit scores of 580 or higher or 10 percent, for those with scores between 500 and 579.
VA loans: Open to qualifying active-duty military members, veterans and their surviving spouses, these loans are guaranteed by the U.S. Department of Veterans Affairs (VA). VA loans don’t usually require a down payment – and they often come with lower rates, too.
USDA loans: Created by the U.S. Department of Agriculture (USDA), these no-down-payment mortgages are available to low- and moderate-income buyers who purchase homes in USDA-approved rural areas. Washington, D.C. isn’t one of those areas, but parts of Maryland and Virginia are.
Get started
When you’re ready to get a mortgage in D.C., start with these steps:
Compare Washington, D.C. mortgage rates: As you enter the housing market in Washington, D.C., check the latest mortgage rates and shop home loan options from a variety of lenders. This can help ensure you get the best mortgage for the lowest cost.
Read reviews of Washington, D.C. lenders: Read up on Washington, D.C. lenders to get an idea of which ones might work for you. Reviews will give you better insight into how the lender works and what current and past customers think about their experience.
Learn more about the homebuying process: If you’re purchasing a home for the very first time, get prepared for the homebuying process. Shopping for homes, applying for loans and closing on a property is less intimidating if you know what to expect.
Research homeowners insurance companies: Once you make an offer on a home, you’ll need to purchase homeowners insurance. The best homeowners insurance companies in Washington, D.C. offer good coverage options, excellent customer service, low rates and multiple discount opportunities.
Maximum household income must be within 130 percent of AMI
Maximum loan amount is $1,209,750
Maximum household income is $216,580
Minimum credit score of 640
Maximum DTI ratio of 50 percent
At least one borrower must complete a homebuyer education class.
Pros:
More affordable interest rates
No restrictions on home price, only loan size
Down payment assistance available
High maximum income
Cons:
Only available to employees of eligible DC employers
Down payment loan must be repaid in 30 years, even if you don’t sell or refinance the home.
Deferred loan can be used only for down payment costs
Washington, D.C. down payment assistance and grants
The Open Doors and DC4ME loan programs come with down payment assistance, as mentioned above. Here are some other options.
DCHFA Home Purchase Assistance Program (HPAP)
DCHFA’s Home Purchase Assistance Program (HPAP) provides first-time homebuyers with up to $202,000 for a down payment and up to $4,000 for closing costs, packaged as a separate 0-percent loan. Note that HPAP loans are prioritized for borrowers with very low-to-moderate incomes, or who are elderly, handicapped, disabled or displaced. Borrowers must be a D.C. resident or have lived there as an adult for at least three years.
Maximum home loan amount cannot exceed $1,089,300
Must be a first-time homebuyer
Household income must be within the very low-to-moderate income level, based on DHCD’s standards
Borrower must have a good credit rating
Must apply through a community-based organization (CBO)
Pros:
Provides down payment and closing cost assistance
For low-income borrowers, repayment is deferred until you sell the home.
Cons:
Moderate-income borrowers must make a monthly payment.
As of February 13, 2025, all available funds for the Home Purchase Assistance Program (HPAP) have been reserved. Not until October, the start of the new fiscal year, will new funding be available. Check the website for updates.
Department of Housing and Community Development (DHCD) Employer-Assisted Housing Program (EAHP)
Under the Employer-Assisted Housing Program, eligible D.C. government employees can receive up to $5,000 in matching down payment funds, as well as a deferred, 0-percent loan of up to $20,000. First responders and educators may qualify for extra assistance.
Must be an employee of a D.C. government agency (includes public schools and public charter schools)
Must have been employed in good standing for at least one year (not required for first responders and teachers)
Must not have owned a primary residence in D.C. within the past three years
Pros:
Open to single-family homes, condos and co-op units in D.C.
Can be used for down payment and closing costs
Loan is deferred until the borrower sells the home, moves out or performs a cash-out refinance
No maximum income or minimum contribution requirement
Cons:
Available only to employees of eligible D.C. agencies
Other Washington, D.C. first-time homebuyer loans
In addition to DCFHA or DCHD programs, Washington, D.C. residents might be eligible for other widely available first-time homebuyer programs, such as FHA, VA and USDA loans. Government-backed programs like these can have more flexible qualifications than conventional mortgages, and many lenders offer them. Here’s a quick overview of each program:
FHA loans: These mortgages are insured by the Federal Housing Administration (FHA). They have a minimum down payment requirement of 3.5 percent for those with credit scores of 580 or higher or 10 percent, for those with scores between 500 and 579.
VA loans: Open to qualifying active-duty military members, veterans and their surviving spouses, these loans are guaranteed by the U.S. Department of Veterans Affairs (VA). VA loans don’t usually require a down payment – and they often come with lower rates, too.
USDA loans: Created by the U.S. Department of Agriculture (USDA), these no-down-payment mortgages are available to low- and moderate-income buyers who purchase homes in USDA-approved rural areas. Washington, D.C. isn’t one of those areas, but parts of Maryland and Virginia are.
Get started
When you’re ready to get a mortgage in D.C., start with these steps:
Compare Washington, D.C. mortgage rates: As you enter the housing market in Washington, D.C., check the latest mortgage rates and shop home loan options from a variety of lenders. This can help ensure you get the best mortgage for the lowest cost.
Read reviews of Washington, D.C. lenders: Read up on Washington, D.C. lenders to get an idea of which ones might work for you. Reviews will give you better insight into how the lender works and what current and past customers think about their experience.
Learn more about the homebuying process: If you’re purchasing a home for the very first time, get prepared for the homebuying process. Shopping for homes, applying for loans and closing on a property is less intimidating if you know what to expect.
Research homeowners insurance companies: Once you make an offer on a home, you’ll need to purchase homeowners insurance. The best homeowners insurance companies in Washington, D.C. offer good coverage options, excellent customer service, low rates and multiple discount opportunities.
Stricter qualifying criteria for for some FHA borrowers
Down payment loan must be repaid in 30 years, even if you don’t sell or refinance the home
DCHFA DC4ME program
D.C. government employees buying their first home — or, at least, their first home in the last three years — can get a reduced mortgage interest rate through the DCHFA’s DC4ME program. The program includes the option to get 3 percent of the home price in down payment assistance, which comes in the form of a 0-percent deferred loan. At least one borrower must be an eligible D.C. government employee.
Maximum household income must be within 130 percent of AMI
Maximum loan amount is $1,209,750
Maximum household income is $216,580
Minimum credit score of 640
Maximum DTI ratio of 50 percent
At least one borrower must complete a homebuyer education class.
Pros:
More affordable interest rates
No restrictions on home price, only loan size
Down payment assistance available
High maximum income
Cons:
Only available to employees of eligible DC employers
Down payment loan must be repaid in 30 years, even if you don’t sell or refinance the home.
Deferred loan can be used only for down payment costs
Washington, D.C. down payment assistance and grants
The Open Doors and DC4ME loan programs come with down payment assistance, as mentioned above. Here are some other options.
DCHFA Home Purchase Assistance Program (HPAP)
DCHFA’s Home Purchase Assistance Program (HPAP) provides first-time homebuyers with up to $202,000 for a down payment and up to $4,000 for closing costs, packaged as a separate 0-percent loan. Note that HPAP loans are prioritized for borrowers with very low-to-moderate incomes, or who are elderly, handicapped, disabled or displaced. Borrowers must be a D.C. resident or have lived there as an adult for at least three years.
Maximum home loan amount cannot exceed $1,089,300
Must be a first-time homebuyer
Household income must be within the very low-to-moderate income level, based on DHCD’s standards
Borrower must have a good credit rating
Must apply through a community-based organization (CBO)
Pros:
Provides down payment and closing cost assistance
For low-income borrowers, repayment is deferred until you sell the home.
Cons:
Moderate-income borrowers must make a monthly payment.
As of February 13, 2025, all available funds for the Home Purchase Assistance Program (HPAP) have been reserved. Not until October, the start of the new fiscal year, will new funding be available. Check the website for updates.
Department of Housing and Community Development (DHCD) Employer-Assisted Housing Program (EAHP)
Under the Employer-Assisted Housing Program, eligible D.C. government employees can receive up to $5,000 in matching down payment funds, as well as a deferred, 0-percent loan of up to $20,000. First responders and educators may qualify for extra assistance.
Must be an employee of a D.C. government agency (includes public schools and public charter schools)
Must have been employed in good standing for at least one year (not required for first responders and teachers)
Must not have owned a primary residence in D.C. within the past three years
Pros:
Open to single-family homes, condos and co-op units in D.C.
Can be used for down payment and closing costs
Loan is deferred until the borrower sells the home, moves out or performs a cash-out refinance
No maximum income or minimum contribution requirement
Cons:
Available only to employees of eligible D.C. agencies
Other Washington, D.C. first-time homebuyer loans
In addition to DCFHA or DCHD programs, Washington, D.C. residents might be eligible for other widely available first-time homebuyer programs, such as FHA, VA and USDA loans. Government-backed programs like these can have more flexible qualifications than conventional mortgages, and many lenders offer them. Here’s a quick overview of each program:
FHA loans: These mortgages are insured by the Federal Housing Administration (FHA). They have a minimum down payment requirement of 3.5 percent for those with credit scores of 580 or higher or 10 percent, for those with scores between 500 and 579.
VA loans: Open to qualifying active-duty military members, veterans and their surviving spouses, these loans are guaranteed by the U.S. Department of Veterans Affairs (VA). VA loans don’t usually require a down payment – and they often come with lower rates, too.
USDA loans: Created by the U.S. Department of Agriculture (USDA), these no-down-payment mortgages are available to low- and moderate-income buyers who purchase homes in USDA-approved rural areas. Washington, D.C. isn’t one of those areas, but parts of Maryland and Virginia are.
Get started
When you’re ready to get a mortgage in D.C., start with these steps:
Compare Washington, D.C. mortgage rates: As you enter the housing market in Washington, D.C., check the latest mortgage rates and shop home loan options from a variety of lenders. This can help ensure you get the best mortgage for the lowest cost.
Read reviews of Washington, D.C. lenders: Read up on Washington, D.C. lenders to get an idea of which ones might work for you. Reviews will give you better insight into how the lender works and what current and past customers think about their experience.
Learn more about the homebuying process: If you’re purchasing a home for the very first time, get prepared for the homebuying process. Shopping for homes, applying for loans and closing on a property is less intimidating if you know what to expect.
Research homeowners insurance companies: Once you make an offer on a home, you’ll need to purchase homeowners insurance. The best homeowners insurance companies in Washington, D.C. offer good coverage options, excellent customer service, low rates and multiple discount opportunities.
Stricter qualifying criteria for for some FHA borrowers
Down payment loan must be repaid in 30 years, even if you don’t sell or refinance the home
DCHFA DC4ME program
D.C. government employees buying their first home — or, at least, their first home in the last three years — can get a reduced mortgage interest rate through the DCHFA’s DC4ME program. The program includes the option to get 3 percent of the home price in down payment assistance, which comes in the form of a 0-percent deferred loan. At least one borrower must be an eligible D.C. government employee.
Maximum household income must be within 130 percent of AMI
Maximum loan amount is $1,209,750
Maximum household income is $216,580
Minimum credit score of 640
Maximum DTI ratio of 50 percent
At least one borrower must complete a homebuyer education class.
Pros:
More affordable interest rates
No restrictions on home price, only loan size
Down payment assistance available
High maximum income
Cons:
Only available to employees of eligible DC employers
Down payment loan must be repaid in 30 years, even if you don’t sell or refinance the home.
Deferred loan can be used only for down payment costs
Washington, D.C. down payment assistance and grants
The Open Doors and DC4ME loan programs come with down payment assistance, as mentioned above. Here are some other options.
DCHFA Home Purchase Assistance Program (HPAP)
DCHFA’s Home Purchase Assistance Program (HPAP) provides first-time homebuyers with up to $202,000 for a down payment and up to $4,000 for closing costs, packaged as a separate 0-percent loan. Note that HPAP loans are prioritized for borrowers with very low-to-moderate incomes, or who are elderly, handicapped, disabled or displaced. Borrowers must be a D.C. resident or have lived there as an adult for at least three years.
Maximum home loan amount cannot exceed $1,089,300
Must be a first-time homebuyer
Household income must be within the very low-to-moderate income level, based on DHCD’s standards
Borrower must have a good credit rating
Must apply through a community-based organization (CBO)
Pros:
Provides down payment and closing cost assistance
For low-income borrowers, repayment is deferred until you sell the home.
Cons:
Moderate-income borrowers must make a monthly payment.
As of February 13, 2025, all available funds for the Home Purchase Assistance Program (HPAP) have been reserved. Not until October, the start of the new fiscal year, will new funding be available. Check the website for updates.
Department of Housing and Community Development (DHCD) Employer-Assisted Housing Program (EAHP)
Under the Employer-Assisted Housing Program, eligible D.C. government employees can receive up to $5,000 in matching down payment funds, as well as a deferred, 0-percent loan of up to $20,000. First responders and educators may qualify for extra assistance.
Must be an employee of a D.C. government agency (includes public schools and public charter schools)
Must have been employed in good standing for at least one year (not required for first responders and teachers)
Must not have owned a primary residence in D.C. within the past three years
Pros:
Open to single-family homes, condos and co-op units in D.C.
Can be used for down payment and closing costs
Loan is deferred until the borrower sells the home, moves out or performs a cash-out refinance
No maximum income or minimum contribution requirement
Cons:
Available only to employees of eligible D.C. agencies
Other Washington, D.C. first-time homebuyer loans
In addition to DCFHA or DCHD programs, Washington, D.C. residents might be eligible for other widely available first-time homebuyer programs, such as FHA, VA and USDA loans. Government-backed programs like these can have more flexible qualifications than conventional mortgages, and many lenders offer them. Here’s a quick overview of each program:
FHA loans: These mortgages are insured by the Federal Housing Administration (FHA). They have a minimum down payment requirement of 3.5 percent for those with credit scores of 580 or higher or 10 percent, for those with scores between 500 and 579.
VA loans: Open to qualifying active-duty military members, veterans and their surviving spouses, these loans are guaranteed by the U.S. Department of Veterans Affairs (VA). VA loans don’t usually require a down payment – and they often come with lower rates, too.
USDA loans: Created by the U.S. Department of Agriculture (USDA), these no-down-payment mortgages are available to low- and moderate-income buyers who purchase homes in USDA-approved rural areas. Washington, D.C. isn’t one of those areas, but parts of Maryland and Virginia are.
Get started
When you’re ready to get a mortgage in D.C., start with these steps:
Compare Washington, D.C. mortgage rates: As you enter the housing market in Washington, D.C., check the latest mortgage rates and shop home loan options from a variety of lenders. This can help ensure you get the best mortgage for the lowest cost.
Read reviews of Washington, D.C. lenders: Read up on Washington, D.C. lenders to get an idea of which ones might work for you. Reviews will give you better insight into how the lender works and what current and past customers think about their experience.
Learn more about the homebuying process: If you’re purchasing a home for the very first time, get prepared for the homebuying process. Shopping for homes, applying for loans and closing on a property is less intimidating if you know what to expect.
Research homeowners insurance companies: Once you make an offer on a home, you’ll need to purchase homeowners insurance. The best homeowners insurance companies in Washington, D.C. offer good coverage options, excellent customer service, low rates and multiple discount opportunities.
Maximum household income must be within 130 percent of the Area Median Income (AMI)
Maximum loan amount is $1,209,750
Minimum credit score of 640
Maximum debt-to-income (DTI) ratio of 50 percent for conventional borrowers and FHA borrowers with credit scores of 680+
For other FHA borrowers, the maximum DTI is 45 percent.
Pros:
Open to both residents and non-residents of D.C.
Open to first-time and repeat homebuyers
More than 50 participating lenders
More affordable interest rates
No restrictions on home price, only loan size
Cons:
Stricter qualifying criteria for for some FHA borrowers
Down payment loan must be repaid in 30 years, even if you don’t sell or refinance the home
DCHFA DC4ME program
D.C. government employees buying their first home — or, at least, their first home in the last three years — can get a reduced mortgage interest rate through the DCHFA’s DC4ME program. The program includes the option to get 3 percent of the home price in down payment assistance, which comes in the form of a 0-percent deferred loan. At least one borrower must be an eligible D.C. government employee.
Maximum household income must be within 130 percent of AMI
Maximum loan amount is $1,209,750
Maximum household income is $216,580
Minimum credit score of 640
Maximum DTI ratio of 50 percent
At least one borrower must complete a homebuyer education class.
Pros:
More affordable interest rates
No restrictions on home price, only loan size
Down payment assistance available
High maximum income
Cons:
Only available to employees of eligible DC employers
Down payment loan must be repaid in 30 years, even if you don’t sell or refinance the home.
Deferred loan can be used only for down payment costs
Washington, D.C. down payment assistance and grants
The Open Doors and DC4ME loan programs come with down payment assistance, as mentioned above. Here are some other options.
DCHFA Home Purchase Assistance Program (HPAP)
DCHFA’s Home Purchase Assistance Program (HPAP) provides first-time homebuyers with up to $202,000 for a down payment and up to $4,000 for closing costs, packaged as a separate 0-percent loan. Note that HPAP loans are prioritized for borrowers with very low-to-moderate incomes, or who are elderly, handicapped, disabled or displaced. Borrowers must be a D.C. resident or have lived there as an adult for at least three years.
Maximum home loan amount cannot exceed $1,089,300
Must be a first-time homebuyer
Household income must be within the very low-to-moderate income level, based on DHCD’s standards
Borrower must have a good credit rating
Must apply through a community-based organization (CBO)
Pros:
Provides down payment and closing cost assistance
For low-income borrowers, repayment is deferred until you sell the home.
Cons:
Moderate-income borrowers must make a monthly payment.
As of February 13, 2025, all available funds for the Home Purchase Assistance Program (HPAP) have been reserved. Not until October, the start of the new fiscal year, will new funding be available. Check the website for updates.
Department of Housing and Community Development (DHCD) Employer-Assisted Housing Program (EAHP)
Under the Employer-Assisted Housing Program, eligible D.C. government employees can receive up to $5,000 in matching down payment funds, as well as a deferred, 0-percent loan of up to $20,000. First responders and educators may qualify for extra assistance.
Must be an employee of a D.C. government agency (includes public schools and public charter schools)
Must have been employed in good standing for at least one year (not required for first responders and teachers)
Must not have owned a primary residence in D.C. within the past three years
Pros:
Open to single-family homes, condos and co-op units in D.C.
Can be used for down payment and closing costs
Loan is deferred until the borrower sells the home, moves out or performs a cash-out refinance
No maximum income or minimum contribution requirement
Cons:
Available only to employees of eligible D.C. agencies
Other Washington, D.C. first-time homebuyer loans
In addition to DCFHA or DCHD programs, Washington, D.C. residents might be eligible for other widely available first-time homebuyer programs, such as FHA, VA and USDA loans. Government-backed programs like these can have more flexible qualifications than conventional mortgages, and many lenders offer them. Here’s a quick overview of each program:
FHA loans: These mortgages are insured by the Federal Housing Administration (FHA). They have a minimum down payment requirement of 3.5 percent for those with credit scores of 580 or higher or 10 percent, for those with scores between 500 and 579.
VA loans: Open to qualifying active-duty military members, veterans and their surviving spouses, these loans are guaranteed by the U.S. Department of Veterans Affairs (VA). VA loans don’t usually require a down payment – and they often come with lower rates, too.
USDA loans: Created by the U.S. Department of Agriculture (USDA), these no-down-payment mortgages are available to low- and moderate-income buyers who purchase homes in USDA-approved rural areas. Washington, D.C. isn’t one of those areas, but parts of Maryland and Virginia are.
Get started
When you’re ready to get a mortgage in D.C., start with these steps:
Compare Washington, D.C. mortgage rates: As you enter the housing market in Washington, D.C., check the latest mortgage rates and shop home loan options from a variety of lenders. This can help ensure you get the best mortgage for the lowest cost.
Read reviews of Washington, D.C. lenders: Read up on Washington, D.C. lenders to get an idea of which ones might work for you. Reviews will give you better insight into how the lender works and what current and past customers think about their experience.
Learn more about the homebuying process: If you’re purchasing a home for the very first time, get prepared for the homebuying process. Shopping for homes, applying for loans and closing on a property is less intimidating if you know what to expect.
Research homeowners insurance companies: Once you make an offer on a home, you’ll need to purchase homeowners insurance. The best homeowners insurance companies in Washington, D.C. offer good coverage options, excellent customer service, low rates and multiple discount opportunities.
If you’re buying your first home in our nation’s capital, it’s not going to be cheap. The median sale price in D.C. was over $560,000 in January 2025, according to Redfin — more than $100,000 more than the national median. And the suburbs aren’t any better: Fairfax County home prices are up 6.3 percent year-over-year, to a median of more than $700,000.
To help first-time homebuyers, the District of Columbia Housing Finance Agency (DCHFA) has a variety of affordable mortgage and down payment and closing cost assistance programs. Here’s a look at the options that might be available to you.
Washington, D.C. first-time homebuyer programs
DCHFA DC Open Doors program
Through the DCHFA’s DC Open Doors mortgage, qualified borrowers can get a low-cost mortgage, as well as down payment assistance in the form of a 0-percent, interest-deferred loan.
Maximum household income must be within 130 percent of the Area Median Income (AMI)
Maximum loan amount is $1,209,750
Minimum credit score of 640
Maximum debt-to-income (DTI) ratio of 50 percent for conventional borrowers and FHA borrowers with credit scores of 680+
For other FHA borrowers, the maximum DTI is 45 percent.
Pros:
Open to both residents and non-residents of D.C.
Open to first-time and repeat homebuyers
More than 50 participating lenders
More affordable interest rates
No restrictions on home price, only loan size
Cons:
Stricter qualifying criteria for for some FHA borrowers
Down payment loan must be repaid in 30 years, even if you don’t sell or refinance the home
DCHFA DC4ME program
D.C. government employees buying their first home — or, at least, their first home in the last three years — can get a reduced mortgage interest rate through the DCHFA’s DC4ME program. The program includes the option to get 3 percent of the home price in down payment assistance, which comes in the form of a 0-percent deferred loan. At least one borrower must be an eligible D.C. government employee.
Maximum household income must be within 130 percent of AMI
Maximum loan amount is $1,209,750
Maximum household income is $216,580
Minimum credit score of 640
Maximum DTI ratio of 50 percent
At least one borrower must complete a homebuyer education class.
Pros:
More affordable interest rates
No restrictions on home price, only loan size
Down payment assistance available
High maximum income
Cons:
Only available to employees of eligible DC employers
Down payment loan must be repaid in 30 years, even if you don’t sell or refinance the home.
Deferred loan can be used only for down payment costs
Washington, D.C. down payment assistance and grants
The Open Doors and DC4ME loan programs come with down payment assistance, as mentioned above. Here are some other options.
DCHFA Home Purchase Assistance Program (HPAP)
DCHFA’s Home Purchase Assistance Program (HPAP) provides first-time homebuyers with up to $202,000 for a down payment and up to $4,000 for closing costs, packaged as a separate 0-percent loan. Note that HPAP loans are prioritized for borrowers with very low-to-moderate incomes, or who are elderly, handicapped, disabled or displaced. Borrowers must be a D.C. resident or have lived there as an adult for at least three years.
Maximum home loan amount cannot exceed $1,089,300
Must be a first-time homebuyer
Household income must be within the very low-to-moderate income level, based on DHCD’s standards
Borrower must have a good credit rating
Must apply through a community-based organization (CBO)
Pros:
Provides down payment and closing cost assistance
For low-income borrowers, repayment is deferred until you sell the home.
Cons:
Moderate-income borrowers must make a monthly payment.
As of February 13, 2025, all available funds for the Home Purchase Assistance Program (HPAP) have been reserved. Not until October, the start of the new fiscal year, will new funding be available. Check the website for updates.
Department of Housing and Community Development (DHCD) Employer-Assisted Housing Program (EAHP)
Under the Employer-Assisted Housing Program, eligible D.C. government employees can receive up to $5,000 in matching down payment funds, as well as a deferred, 0-percent loan of up to $20,000. First responders and educators may qualify for extra assistance.
Must be an employee of a D.C. government agency (includes public schools and public charter schools)
Must have been employed in good standing for at least one year (not required for first responders and teachers)
Must not have owned a primary residence in D.C. within the past three years
Pros:
Open to single-family homes, condos and co-op units in D.C.
Can be used for down payment and closing costs
Loan is deferred until the borrower sells the home, moves out or performs a cash-out refinance
No maximum income or minimum contribution requirement
Cons:
Available only to employees of eligible D.C. agencies
Other Washington, D.C. first-time homebuyer loans
In addition to DCFHA or DCHD programs, Washington, D.C. residents might be eligible for other widely available first-time homebuyer programs, such as FHA, VA and USDA loans. Government-backed programs like these can have more flexible qualifications than conventional mortgages, and many lenders offer them. Here’s a quick overview of each program:
FHA loans: These mortgages are insured by the Federal Housing Administration (FHA). They have a minimum down payment requirement of 3.5 percent for those with credit scores of 580 or higher or 10 percent, for those with scores between 500 and 579.
VA loans: Open to qualifying active-duty military members, veterans and their surviving spouses, these loans are guaranteed by the U.S. Department of Veterans Affairs (VA). VA loans don’t usually require a down payment – and they often come with lower rates, too.
USDA loans: Created by the U.S. Department of Agriculture (USDA), these no-down-payment mortgages are available to low- and moderate-income buyers who purchase homes in USDA-approved rural areas. Washington, D.C. isn’t one of those areas, but parts of Maryland and Virginia are.
Get started
When you’re ready to get a mortgage in D.C., start with these steps:
Compare Washington, D.C. mortgage rates: As you enter the housing market in Washington, D.C., check the latest mortgage rates and shop home loan options from a variety of lenders. This can help ensure you get the best mortgage for the lowest cost.
Read reviews of Washington, D.C. lenders: Read up on Washington, D.C. lenders to get an idea of which ones might work for you. Reviews will give you better insight into how the lender works and what current and past customers think about their experience.
Learn more about the homebuying process: If you’re purchasing a home for the very first time, get prepared for the homebuying process. Shopping for homes, applying for loans and closing on a property is less intimidating if you know what to expect.
Research homeowners insurance companies: Once you make an offer on a home, you’ll need to purchase homeowners insurance. The best homeowners insurance companies in Washington, D.C. offer good coverage options, excellent customer service, low rates and multiple discount opportunities.
By FFN
