Your first DC home, demystified.

As little as 0% with a VA loan, 3% with a conventional loan, or 3.5% with an FHA loan. DC's HPAP program provides up to $202,000 in interest-free down payment assistance plus $4,000 toward closing costs, and DC Open Doors covers your required minimum down payment through a zero-interest deferred second. Many first-time buyers purchase with little to no cash out of pocket by stacking these programs.

Usually not, and this is the most common expensive misunderstanding in the DC market. The District is a designated high-cost area, so the 2026 conforming ceiling here is $1,249,125 — not the $832,750 national baseline that national sites quote. A loan between those figures is high-balance conforming: still Fannie Mae or Freddie Mac backed, priced much closer to standard conforming than to jumbo, and without jumbo's reserve and credit overlays. Buyers get quoted jumbo terms they never needed.

Partnership and self-employment income is documented from returns and K-1s rather than pay stubs, and lenders look at a two-year history, the trend between years, and whether the entity's own returns support distributions. Guaranteed payments, distributions and retained earnings are treated differently. A recent move from W-2 associate to K-1 partner is common in DC and entirely workable, but it needs structuring up front — it is the single most frequent reason a high-income file stalls.

Often not, and it's better to know early. Every District program is income-capped: DC Open Doors sets a borrower income limit of $275,400, the reduced recordation rate caps combined household AGI by household size — $206,640 for one person, $236,160 for two — and the price at $777,000, the Tax Abatement program caps price at $576,000, and HPAP's assistance scales down as income rises. A two-attorney household buying a rowhouse will clear all of them. That doesn't disadvantage you — it just means your deal is decided by loan structure and documentation rather than by program eligibility.

Yes, and at DC prices it is often how a first-time buyer gets the location they want. FHA 203(k) and Fannie Mae HomeStyle renovation loans finance the purchase and the work in one mortgage, underwritten against the home's value after completion rather than its current condition. Licensed contractors do the work and funds release in draws. It adds time before closing — bids, scope and an as-completed appraisal all get reviewed — so contract dates need to reflect that.

It depends on your income and your timeline. HPAP is DC's deepest assistance program — interest-free, deferred gap financing that scales down as household income rises — but it is administered by DHCD through certified housing counseling agencies, requires homebuyer education, and runs on its own application timeline. That suits a buyer with months to plan. It does not suit someone who wants to be competitive on a listing next month, and many DC professional households are over the income limits regardless. We will tell you honestly which side of that line you're on rather than sending you down a path that doesn't fit.

Minimum 580 for an FHA loan with 3.5% down, or 620 for a conventional loan with 3% down. However, higher scores get significantly better interest rates — a 740+ score can save you $100-$200/month compared to a 660 score on the same loan. If your score needs work, focus on paying down credit cards and making all payments on time for 6-12 months before applying.

First-time DC buyers who qualify pay a reduced recordation tax rate of 0.725% instead of the standard rate, which is 1.1% below $400,000 and 1.45% at $400,000 and above. On a $500,000 purchase that's 0.725% against 1.45% — roughly $3,625 saved. Through September 30, 2026 the purchase price cap is $777,000 and the combined household AGI limit runs from $206,640 for a one-person household to $389,520 for eight. DC republishes both each October 1. After purchase, the homestead deduction reduces your assessed value by $91,950, saving roughly $782/year in property taxes. You may also deduct mortgage interest and up to $10,000 in property taxes on your federal return.

FHA is better if your credit score is below 680 or your debt-to-income ratio is high (45-50%). Conventional is better if your score is 700+ because PMI eventually drops off (FHA's mortgage insurance is permanent). Conventional also gives you access to more condo buildings since it doesn't require FHA project approval. Both work with DC assistance programs.

Expect $10,000-$25,000 depending on purchase price. The biggest component is DC's recordation tax — 1.1% below $400,000 and 1.45% at $400,000 and above, reduced to 0.725% for qualifying first-time buyers — plus your share of the transfer tax. Buyers under the DC Tax Abatement program's $576,000 price cap can be exempted from recordation tax entirely. DC Open Doors and seller concessions can help cover the rest.

Yes, if you want to use HPAP or many other DC assistance programs. The course is 8 hours (in-person or online), costs $0-$75, and covers budgeting, the buying process, and homeownership responsibilities. Providers include Housing Counseling Services, UDC, and HomeFree-USA. Complete it early — you'll need the certificate before applying for HPAP.

Plan for 4-6 months total: 1-2 months for preparation (credit check, pre-approval, HPAP application), 1-3 months searching for a home, and 45-60 days from contract to closing. Condo purchases take longer than rowhouses due to HOA document review. Getting pre-approved and completing homebuyer education early helps streamline the process.

A rough guideline: multiply your gross annual income by 3.5-4x for an approximate purchase price. At $100,000/year, you can likely afford $350,000-$400,000. At $150,000, roughly $525,000-$600,000. DC assistance programs can add substantially to your effective buying power — HPAP alone reaches up to $202,000 for the lowest income tiers. High HOA dues reduce affordability — every $400/month in HOA cuts about $56,000 from your maximum purchase price.

Consider adjacent neighborhoods (Columbia Heights instead of Logan Circle, Brookland instead of Capitol Hill), condos instead of rowhouses, or smaller units. DC Open Doors and HPAP can stretch your budget. Some buyers start with a starter condo, build equity for 3-5 years, then sell and move up. The homestead deduction and mortgage interest deduction make owning more affordable than it appears on paper.

Yes. Lenders include student loan payments in your debt-to-income ratio, but this doesn't disqualify you. FHA loans allow up to 50% DTI with compensating factors. Income-driven repayment plans with lower monthly payments help your DTI. Pay down credit cards first (bigger DTI impact per dollar). Many DC first-time buyers successfully purchase with student loan debt.

Private mortgage insurance (PMI) is required on conventional loans with less than 20% down. It typically costs $100-$300/month. You can avoid it by putting 20% down, using a VA loan (no PMI), or using a piggyback loan structure. With conventional loans, PMI automatically drops off once you reach 78% loan-to-value through payments or appreciation.

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 and shop it across our wholesale lender network, so the lenders compete for your loan and you take the winning offer. 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.

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