Washington DC has some of the most generous down payment assistance programs in the country. For first-time buyers, these programs can reduce or eliminate the cash needed to buy a home. Here's a complete breakdown of what's available in 2026.
HPAP: Home Purchase Assistance Program
HPAP is DC's flagship homebuyer assistance program, administered by the Department of Housing and Community Development (DHCD).
How It Works
HPAP provides interest-free, deferred loans for down payment and closing costs. You don't make monthly payments on the HPAP loan — it's repaid when you sell, refinance, or stop living in the home.
Assistance Amounts
The maximum is $202,000 in gap financing, plus $4,000 toward closing costs.
That maximum goes to the lowest income tier. Assistance scales down through the very low, low, and moderate income bands and varies by household size — DHCD publishes the governing figures in its HPAP Homebuyer Assistance Table, which is republished as area median income updates.
Because both the income thresholds and the assistance amounts move, we don't reproduce the full grid here — it goes stale faster than it's useful. Check the current DHCD assistance table, or ask us to run your household size and income against the version in force today.
Requirements
- First-time DC homebuyer (haven't owned in DC in past 3 years)
- Must purchase in DC
- Must occupy as primary residence
- Complete a HUD-approved homebuyer education course (8 hours)
- Contribute $500 or half your liquid assets above $3,000, whichever is greater (waivable for some elderly, disabled, or displaced households)
- Note that DC residents are prioritized; non-residents are processed after resident applications
- Have a purchase contract or be actively searching
Application Process
- Complete homebuyer education and obtain certificate
- Gather financial documents (tax returns, bank statements, pay stubs)
- Apply through DHCD (online or in person)
- DHCD reviews application and determines eligibility and amount
- Receive eligibility letter (4-8 weeks processing time)
- Present letter to your lender during the loan process
Tips
- Apply early: Processing takes 4-8 weeks, and funding is limited annually
- Budget accurately: The $2,500 minimum contribution must come from your own savings (not gifts)
- Funding availability: HPAP is funded by DC's annual budget. Once funds are exhausted for the fiscal year, the program pauses until the next allocation
DC Open Doors
DC Open Doors is a down payment and closing cost assistance program available through participating lenders.
How It Works
- Provides up to 3.5% of the purchase price as a second loan
- 0% interest, deferred repayment
- Repaid when you sell, refinance, or transfer the property
- Combined with a first mortgage from a participating lender
Example
On a $500,000 purchase:
- DC Open Doors assistance: $17,500
- This can cover your entire FHA down payment (3.5%) or most of a conventional down payment (3-5%)
Eligibility
- First-time DC homebuyer
- Must purchase in DC
- Must occupy as primary residence
- No income limit — available to all qualifying first-time buyers
- Must use a participating lender
Advantages Over HPAP
- No income limit (HPAP caps at 110% AMI)
- Faster processing (through your lender, not a government agency)
- Percentage-based (scales with purchase price)
Can You Stack HPAP and DC Open Doors?
Yes. Many buyers use HPAP for the down payment and DC Open Doors for closing costs, or vice versa. This combination can result in little to no cash out of pocket.
EAHP: Employer Assisted Housing Program
For federal government employees, the Employer Assisted Housing Program provides additional assistance.
How It Works
- Up to $14,000 for down payment and closing costs
- Available to eligible federal employees purchasing in DC
- Administered through participating agencies
- Some agencies have their own additional housing assistance programs
Who Qualifies
- Federal employees at participating agencies
- Must purchase in DC
- Must be a first-time homebuyer (or meet agency-specific criteria)
- Check with your agency's HR department for availability and specific requirements
DC Tax Benefits for First-Time Buyers
Beyond direct assistance, DC offers tax benefits that reduce your costs:
Reduced Recordation Tax
- Standard rate: 1.1% of the loan amount
- First-time buyer rate: 0.725%
- Savings on a $475,000 loan: $1,781
DC Homestead Deduction
- Reduces assessed property value by $91,950 for property tax purposes
- Saves roughly $780/year in property taxes
- Must apply after purchase — not automatic
Stacking Programs: Real Scenarios
Scenario 1: Lower-Income Buyer — $350,000 Condo
| Component | Amount |
|---|---|
| Purchase price | $350,000 |
| FHA down payment (3.5%) | $12,250 |
| HPAP (low income, 50-80% AMI) | -$12,250 |
| Closing costs (estimated) | $12,000 |
| DC Open Doors (3.5%) | -$12,250 |
| Reduced recordation tax savings | -$1,250 |
| Your required contribution | $2,500 (HPAP minimum) |
Total cash needed: approximately $2,500
Scenario 2: Moderate-Income Buyer — $500,000 Home
| Component | Amount |
|---|---|
| Purchase price | $500,000 |
| Conventional down payment (3%) | $15,000 |
| HPAP (moderate income, 80-110% AMI) | -$15,000 |
| Closing costs (estimated) | $16,000 |
| DC Open Doors (3.5%) | -$17,500 |
| Cash needed (beyond HPAP minimum) | $2,500 |
Scenario 3: Federal Employee — $450,000 Home
| Component | Amount |
|---|---|
| Purchase price | $450,000 |
| FHA down payment (3.5%) | $15,750 |
| HPAP (moderate income) | -$15,750 |
| Closing costs (estimated) | $14,000 |
| EAHP | -$14,000 |
| Cash needed | $2,500 (HPAP minimum) |
Important Considerations
Program Funding
Both HPAP and DC Open Doors have annual funding limits. HPAP in particular can run out mid-year. Apply as early as possible.
Repayment Obligations
All deferred loans (HPAP, DC Open Doors) become due when you:
- Sell the property
- Refinance the mortgage
- Stop using it as your primary residence
- Transfer ownership
This means if you refinance to get a better rate in a few years, you'll need to repay the assistance or re-qualify.
Property Requirements
- Must be in Washington DC
- Must be your primary residence
- Must meet program-specific property standards (FHA appraisal standards for FHA loans, etc.)
Combining with Loan Types
- FHA: Works well with all programs. 3.5% down, 580+ credit score.
- Conventional: Works with all programs. 3% down, 620+ credit score.
- VA: No down payment required. DC programs can still help with closing costs.
DC's assistance programs make homeownership achievable even in one of the country's most expensive markets. The key is starting early, completing the required education, and applying before funds run out.
Ready to take the next step? See our first-time DC buyer guide or get pre-qualified — two minutes, no credit pull.
