The steps to buy a first home in DC, in order: check your credit and savings, get pre-approved, choose a loan program, search, make an offer, close.

Step 1: Check your credit score, debt-to-income ratio and savings

Know these three numbers before you tour homes:

Credit score: FHA accepts scores from 580 at the program's 3.5% minimum down payment. Conventional loans need a 620 score, and loan-level price adjustments are smallest at 780 and above.
Debt-to-income ratio: Agency automated underwriting (Fannie Mae Desktop Underwriter and Freddie Mac Loan Product Advisor) allows total monthly debt payments, including the new mortgage, up to 45–50% of gross income. A lower ratio leaves more room in the approval.
Savings: Beyond your down payment, you need funds for closing costs. In DC that means lender and title fees plus the buyer-paid recordation tax (1.1% of price under $400,000, 1.45% at $400,000 and above; 0.725% for qualifying first-time buyers; see our DC recordation tax page), plus inspections and moving expenses.

Step 2: Get pre-approved

A pre-approval letter tells the seller a lender has reviewed your credit, income and assets. The steps:

Send the pre-approval letter with every offer you write. The listing agent uses it to judge whether your financing will close.

The three loan types for first-time buyers, followed by DC's tax programs and assistance:

3.5% minimum down payment (FHA program rule), and the whole down payment can be a gift from family
Accepts credit scores from 580 at 3.5% down
Mortgage insurance for the life of the loan when you put down less than 10% (11 years otherwise)
Condos need an FHA-approved building or FHA single-unit approval

3% minimum down payment for first-time buyers on loans up to $832,750 (5% on high-balance loans above that, up to DC's $1,249,125 limit)
Private mortgage insurance (PMI) required if the down payment is less than 20%; PMI cancels at 20% equity
Loan-level price adjustments get smaller as the credit score rises

No down payment required for eligible veterans
No PMI; the VA guaranty replaces monthly mortgage insurance
One-time VA funding fee, waived for veterans receiving service-connected disability compensation

Reduced recordation tax: qualifying first-time DC buyers pay 0.725% recordation tax on purchases up to $777,000 (tax year 2026), claimed at settlement with any lender.
DC Tax Abatement: purchases up to $576,000 (tax year 2026) by buyers within the income limits may qualify. It waives recordation tax and abates property tax for five years.
Homestead deduction: takes $91,950 off the assessed value of an owner-occupied home for tax year 2026.
DC Open Doors, through DCHFA's participating lenders: a down-payment-assistance second with no purchase-price cap, for buyers within the income limits.
HPAP, through DHCD-certified housing counseling agencies: up to $202,000 plus $4,000 toward closing costs, for buyers within the income limits.

DC-government employees can also look at EAHP. See our DC down payment assistance guide.

Four things to do during the search:

Work with a local real estate agent who knows your target neighborhoods
Keep your pre-approval letter current so you can write an offer the day you find the home
Keep your finances unchanged so the pre-approval still holds when you offer
Compare price per square foot across neighborhoods with our DC price-per-square-foot tool

Once you find the home:

Skipping pre-approval: Get pre-approved before you start touring so you know your budget
Ignoring additional costs: Budget for property taxes, homeowners insurance, HOA fees and maintenance
Making major financial changes: Don't open new credit cards, change jobs, or make large purchases during the mortgage process
Waiving inspections: An inspection tells you the home's condition before you are committed to it

Next step: see our first-time DC buyer guide or get pre-qualified. It takes two minutes and there is no credit pull.