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How to buy a home in District of Columbia

Quick answer

To buy a home in District of Columbia, most buyers use an FHA, conventional, VA or USDA loan, often combined with DC Housing Finance Agency (DCHFA) down payment assistance. With a typical home around $724,600, a 3.5% FHA down payment is about $25,361 and the estimated monthly payment is roughly $5,678 at a 7.18% rate.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

District of Columbia is among the most expensive housing markets in the country. Many buyers here pair state assistance with careful loan selection, and some purchases cross into jumbo territory. Because District of Columbia has a smaller population, local lenders and the state housing agency play an outsized role — it pays to compare a few loan officers. A household earning around $220,000 a year could comfortably afford a typical District of Columbia home under the 31% housing guideline.

What does a home cost in District of Columbia?

ItemDistrict of Columbia estimate
Typical home value$724,600
3% down (conventional)$21,738
3.5% down (FHA)$25,361
20% down$144,920
Est. monthly payment (FHA, 3.5% down)$5,678
Household income to afford (31%)$220,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

What first-time home buyer programs does District of Columbia offer?

DC Housing Finance Agency (DCHFA) is District of Columbia's housing finance agency. Its programs are offered through approved lenders and usually require homebuyer education plus income and purchase-price limits.

  • DC Open Doors: Competitive-rate loans with optional down payment assistance for buyers within income limits; first-time status not required.
  • Home Purchase Assistance Program (HPAP): Interest-free deferred loans from DC's Department of Housing and Community Development for eligible first-time buyers.

Check current terms at DC Housing Finance Agency (DCHFA). Many District of Columbia cities and counties also run their own down payment assistance.

What are the District of Columbia loan limits for 2026?

District of Columbia has 1 counties; 1 are high-cost areas. Here are the official 2026 one-unit limits for its most populous counties (FHFA and HUD):

CountyConformingFHA
District of Columbia$1,249,125$1,249,125

See all District of Columbia county loan limits → VA loans have no limit for borrowers with full entitlement.

Which District of Columbia down payment assistance programs are verified?

How much house can I afford in District of Columbia?

Use District of Columbia's own property tax rate and insurance average: $60k, $80k, $100k, $150k salaries, or see FHA requirements in District of Columbia.

How do property taxes affect buying in District of Columbia?

Homeowners in District of Columbia pay a median of $4,180 a year in property taxes — an effective rate of about 0.58% of the median home value, below the national average, which helps keep monthly payments down (Census ACS). Actual rates vary by county and municipality.

Which loan types are popular in District of Columbia?

  • Conventional Loan — Not government-backed; as little as 3% down for first-time buyers, PMI removable at 20% equity.
  • FHA Loan — Government-insured; 3.5% down with a 580 credit score and flexible debt-to-income rules.
  • VA Loan — For eligible veterans, service members and surviving spouses: 0% down and no monthly mortgage insurance.
  • USDA Loan — 0% down for moderate-income buyers in eligible rural and suburban areas.
  • Jumbo Loan — For loan amounts above the conforming limit; usually 10–20% down and 700+ credit.
  • First-Time Home Buyer Loans — Low-down-payment loans plus state assistance programs designed for first-time buyers.

Buying a home in District of Columbia cities

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District of Columbia home buying FAQs

On a typical District of Columbia home of about $724,600, a 3.5% FHA down payment is roughly $25,361 and a 3% conventional down payment about $21,738, plus closing costs of 2%–5% of the loan.

Yes. DC Housing Finance Agency (DCHFA) offers programs including DC Open Doors, Home Purchase Assistance Program (HPAP). Income, price and credit limits apply.

The 2026 baseline conforming limit for a one-unit home is $1,249,125 in most District of Columbia counties; designated high-cost counties can be higher.

FHA limits are set by county. For 2026 they start at $1,249,125 for one-unit homes in lower-cost areas and rise in higher-cost counties.

Sources

Data last updated October 23, 2026.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.