Condo loans in DC

A warrantable condo is in a building that meets Fannie Mae and Freddie Mac guidelines for conventional financing. The main tests: no single entity owns more than 20% of the units, the HOA puts at least 10% of its budget into reserves, there is no pending litigation, commercial space is no more than 35% of the floor area, and a new-construction building has at least 50% of its units sold. A warrantable condo qualifies for the widest range of loans.

Yes, if the building is on the FHA-approved list or the unit qualifies for FHA single-unit approval. Check the building's status on HUD's condo lookup tool. If the building is not approved, the HOA can apply for FHA project approval, or your lender can pursue single-unit approval in a building with 5 or more units.

HOA dues in DC range from about $200 to $800 a month, depending on the building's age, size, amenities and location. High-rises with a concierge, pool and gym sit at the top of that range; smaller converted buildings sit lower. Lenders count HOA dues in your debt-to-income ratio, which lowers the amount you can borrow.

You can still finance it with a portfolio loan, which the lender keeps instead of selling to Fannie Mae or Freddie Mac. A portfolio condo loan carries a higher interest rate, a larger down payment (20-25% minimum) and a higher credit score requirement (700+).

They are about the same. DC's recordation tax is 1.1% below $400,000 and 1.45% at $400,000 and above, plus your share of the transfer tax. Qualifying first-time DC buyers pay a reduced recordation rate of 0.725% on purchases up to $777,000 (tax year 2026). Total closing costs run about $10,000 to $20,000 on a $400,000-$500,000 purchase.

Review the HOA's reserve fund balance against its reserve study, the annual budget, the history of special assessments, and the share of owners behind on dues. Warning signs: less than 10% of the budget going to reserves, frequent special assessments, or more than 15% of owners behind on dues.

Yes. An investment condo loan needs 15-25% down, a stronger credit score (700+) and more reserves, and it carries a higher interest rate than a loan on a home you live in. FHA and VA loans cannot be used for investment properties. Also check the condo bylaws for a rental cap, which limits how many units in the building can be rented.

In a condo, you own your unit and a share of the common areas. In a co-op, you own shares in a corporation that owns the whole building, and a proprietary lease gives you the right to your unit. A co-op purchase is financed with a co-op share loan instead of a standard mortgage, and fewer lenders offer co-op loans. DC has co-op buildings in Dupont Circle and other historic neighborhoods.

DC's homestead deduction lowers your unit's assessed value by $91,950 (tax year 2026) for property tax if you live in it as your primary residence. At DC's 0.85% rate, that is about $780 a year off the tax bill on a condo assessed at $450,000. The deduction is not automatic: apply after you buy.

A special assessment is a one-time charge from the HOA for a major expense the regular dues do not cover, such as a roof replacement, elevator modernization or facade repair. Assessments range from a few hundred dollars to tens of thousands. Before you buy, ask for the building's assessment history and its list of upcoming capital projects. A well-funded reserve makes a special assessment less likely.

District Mortgage is a licensed mortgage broker, not a bank or direct lender. We do not fund loans with our own money. We take your application, prepare your file, and submit it to a wholesale lender, which funds the loan. NMLS #2819502 — verify us at nmlsconsumeraccess.org.

No. We are licensed in the District of Columbia only, so the property has to be in DC. We cannot accept an application or a pre-qualification request for a property in Maryland, Virginia, or any other state. If your property is elsewhere, nmlsconsumeraccess.org will show you licensed originators in that state.

Alan Trombley, Principal Mortgage Loan Originator, NMLS #2805044, is your loan officer. He is licensed in the District of Columbia and handles every file from pre-qualification through closing.

Our rates page is the source for our pricing. It shows an effective date, the APR next to every rate, and the borrower assumptions each example is priced on. Rates shown anywhere on this site are current rate examples priced for the borrower assumptions published with them. They are not offers of credit or commitments to lend, and pricing changes daily. Anyone quoting a rate from us should cite the effective date it was published with.