D.C. Down Payment Assistance Programs

Programs available to Washington, D.C. residents.

DC Open Doors

(Washington, DC only)

The DC Open Doors loan program provides 100% financing to qualified purchasers in Washington DC up to the current conforming loan limit of $548,250.  Down payment assistance is available under the 2021 High Balance program up to the new high balance loan limit of $822,375.  High Balance loans will required an additional borrower paid 2% down.

The DC Open Doors down payment assistant loan program is offered by the DC Housing Financing Authority in partnership with participating DC Open Doors lenders.

Program Highlights:

  • FHA & Conventional financing, both offering a down payment assistance loan, equal to the minimum down payment required. The combined mortgages equal 100% financing.
  • The down payment assistance 2nd mortgage does not require a monthly payment – It is due and payable upon one of the following events: 1. Thirty years from the date of the loan closing 2. Sale or transfer of the property to another person, business or entity, 3. Property ceases to be your principal residence, 4. Refinancing of the first trust loan
  • Maximum loan amount -$548,250. ***as of 1/1/21*** No sales price limit.
  • Reduced monthly mortgage insurance when using the Conventional DC Open Doors program.
  • Primary residence only.
  • 640 minimum credit score.
  • Do not need to be a first time home buyer, but you cannot currently own real estate.
  • Home buyer education is required for the Conventional program. You can obtain your certificate here – http://homebuyers.mgic.com/
  • Mortgage Credit Certificate (MCC) is also available. ***currently unavailable as of 2/19/21***
  • Maximum borrower income limit of $151,200. (effective 9/1/20) Does not include income of non borrower occupants.

For mortgage information on this program and for daily posted rates feel free to visit the DC OPEN DOORS official site.

D.C. Recordation Tax Reduction

Starting in October 2017, the DC recordation tax rate can be reduced for eligible buyers* to .725% of the sales price. The current transfer tax is 1.1% for purchases below $400,000 and 1.45% for purchases at or above $400,000.

For example, on a $500,000 purchase, the DC transfer tax is 1.45% or $7,250. For eligible purchasers buying a similarly priced home with a closing date on or after 10/1/17, the recordation tax will be cut in half – .725% or $3625.

*The key requirements for qualification are as follows:

  • The purchaser must be buying their first home in the District of Columbia. It is OK for a buyer to have owned outside DC.
  • The property must be a principal residence and the buyer must qualify for the homestead deduction.
  • The buyer must document that they meet household income limits. Income from all sources is counted, regardless of whether or not a member of the household is on the note or deed.

Income limits by household size:

For additional information see full program details HERE.

Curious if you qualify?