Eligible veterans and active-duty service members purchasing a home in Washington, D.C. may have another way to reduce their upfront costs.
The DC4ME VA Loan Program combines the traditional advantages of VA financing with assistance equal to 3% of the loan amount funded by the District of Columbia Housing Finance Agency (DCHFA). For eligible borrowers, the assistance may be applied toward allowable closing costs and prepaid expenses.
This combination may allow qualified military-connected homebuyers to purchase a primary residence with no down payment, no monthly mortgage insurance and substantially less cash required at closing.
DC4ME VA Loan Program Summary
DC4ME VA is a fixed-rate VA mortgage program offered through DCHFA for eligible military-connected borrowers purchasing a primary residence in Washington, D.C. Qualified borrowers may receive 100% financing and assistance equal to 3% of the loan amount toward eligible closing costs and prepaid expenses.
The Chris Jordan Mortgage Team of Main Street Home Loans is able to assist qualified borrowers with DC4ME VA and other DCHFA mortgage programs.
DC4ME VA Quick Answers
How much down payment is required?
Qualified borrowers with sufficient VA entitlement may be eligible for 100% financing with no down payment.
How much assistance is available?
DCHFA provides assistance equal to 3% of the loan amount for eligible closing costs or prepaid expenses.
Is monthly mortgage insurance required?
No. VA loans do not require monthly private mortgage insurance or monthly FHA-style mortgage insurance.
What is the minimum credit score?
DCHFA currently lists a minimum credit score of 640, although individual lender requirements may vary.
Are there income limits?
DCHFA currently states that the DC4ME VA Loan Product does not have an income limit. Borrowers must still meet VA residual-income and underwriting requirements.
Does the home have to be a primary residence?
Yes. The borrower must occupy the Washington, D.C. property as a primary residence.
Who May Qualify for DC4ME VA?
The program may be available to borrowers who are eligible for VA financing, including:
- Veterans with sufficient service history and VA entitlement
- Active-duty service members
- Certain members of the National Guard and Reserves
- Certain eligible surviving spouses
A valid VA Certificate of Eligibility is required. Your lender can often obtain the certificate electronically as part of the preapproval process.
Unlike the standard DC4ME program for District government employees, DCHFA describes the DC4ME VA Loan Product as being for eligible military-connected borrowers. Borrowers should have their eligibility reviewed before relying on the program when making an offer.
How Can the 3% Assistance Be Used?
The assistance may be used toward eligible closing costs and prepaid expenses, which can include:
- VA funding fee, when the borrower is not exempt
- VA appraisal fee
- Lender and settlement charges
- Title insurance
- Recording fees
- Prepaid property taxes
- Homeowners insurance
- Initial escrow deposits
- Other allowable closing costs
The precise use of the assistance will depend on the transaction, VA guidelines and the final Closing Disclosure. The assistance is intended for eligible closing expenses rather than additional cash back to the borrower.
For a broader explanation of upfront home-purchase expenses, read How Much Money Do I Need to Buy a House in Maryland, DC or Virginia?
What Properties Are Eligible?
DCHFA currently identifies the following eligible property types:
- Single-family primary residences
- Townhouses and rowhouses
- Eligible condominiums
- Two- to four-unit residential properties
For a two- to four-unit property, the borrower must occupy one of the units as a primary residence. VA property, appraisal and occupancy requirements will also apply.
Condominiums generally must meet VA eligibility requirements. Learn how to check whether a condominium is VA approved before making an offer.
Additional DC4ME VA Requirements
DCHFA currently identifies the following program guidelines:
- Minimum credit score of 640, subject to lender requirements
- Fixed-rate first mortgage
- Debt-to-income ratio generally up to 45%, with compensating factors considered
- Satisfactory VA residual income
- Valid VA Certificate of Eligibility
- Primary-residence occupancy
- Property located in Washington, D.C.
- Qualification through an approved participating lender
Program guidelines, assistance availability and interest rates can change. Receiving a VA Certificate of Eligibility does not by itself guarantee mortgage or DCHFA program approval.
DC4ME VA Versus a Standard VA Loan
Both options may offer 100% financing and no monthly mortgage insurance. The distinguishing feature of DC4ME VA is the 3% DCHFA assistance for eligible closing costs and prepaid expenses.
However, the DC4ME interest rate may differ from the rate available through a standard VA mortgage. A lower cash requirement does not automatically mean the program will provide the lowest total borrowing cost.
A useful comparison should include:
- The interest rate
- Estimated monthly payment
- Cash required at closing
- Available seller contributions
- DCHFA assistance
- Estimated costs over the expected time you will own the home
This comparison can help determine whether DC4ME VA, HomeAdvantage DC VA or a standard VA loan provides the best overall structure for your situation.
Can Seller Contributions Be Used Too?
VA financing generally permits seller contributions and seller-paid closing costs within applicable limits. DCHFA currently indicates that seller contributions of up to 4% may be available toward allowable items under the DC4ME VA program.
The contract and loan structure must comply with VA and DCHFA requirements. We can help your real estate agent determine how to structure a request for seller assistance without exceeding program limits.
Is the VA Funding Fee Required?
Many VA borrowers pay a one-time VA funding fee. The amount depends on factors such as the borrower’s military status, prior use of VA financing and down payment.
Some veterans and surviving spouses are exempt from the funding fee. When a funding fee applies, it can generally be financed into the mortgage or may be paid using available DC4ME assistance, subject to program rules.
Is DC4ME VA the Best Option for Every VA Buyer?
Not necessarily. DC4ME VA can be especially helpful for an eligible borrower whose primary concern is reducing the cash required at closing.
Other borrowers may benefit more from a standard VA mortgage or another DCHFA program offering a different rate or assistance structure. The right choice depends on the borrower’s available funds, expected time in the home, credit profile, purchase price and monthly-payment priorities.
Our Washington DC homebuyer-program guide explains additional programs that may be worth comparing.
Get Preapproved for the DC4ME VA Loan Program
I have more than 20 years of mortgage experience helping homebuyers throughout Washington, D.C., Maryland and Virginia. My team can help eligible veterans, service members and surviving spouses compare DC4ME VA with standard VA financing and other DCHFA programs.
Before you begin making offers, we can:
- Confirm preliminary VA eligibility
- Obtain or review your Certificate of Eligibility
- Estimate the available DCHFA assistance
- Compare interest rates, payments and closing costs
- Review property eligibility
- Help you understand how seller contributions may affect your cash requirement
Contact the Chris Jordan Mortgage Team at (240) 670-5090 or CJMT@mainstreethl.com to discuss your eligibility and financing options.
Official DC4ME VA Program Information
Program information was reviewed using the District of Columbia Housing Finance Agency’s official DC4ME materials. Guidelines, interest rates and funding availability are subject to change. Review the official DCHFA DC4ME program page for current public information.
This information is for educational purposes and is not a commitment to lend. All loans are subject to borrower, property, VA, investor and DCHFA eligibility requirements.
