Overview
District of Columbia's housing market offers opportunities for first-time buyers, with a median home price of approximately $650,000. The DC Housing Finance Agency (DCHFA) provides the primary state-level assistance through mortgage programs and down payment assistance for qualifying buyers.
The DC Open Doors Program is a dc housing finance agency's key offering for first-time buyers, providing up to 3.5% of the purchase price as a deferred second mortgage. This program is designed to reduce the upfront cost barrier that prevents many qualified buyers from purchasing a home. Buyers must complete a HUD-approved homebuyer education course and work with an approved lender.
State Programs
DC Open Doors Program
Down payment and closing cost assistanceHome Purchase Assistance Program (HPAP)
Interest-free loan and closing cost assistanceFederal Programs Available in District of Columbia
These nationwide programs can be combined with District of Columbia state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in District of Columbia
The Home Purchase Assistance Program (HPAP) extends additional support through up to $202,000 in interest-free loan based on income and household size. DC has a graduated income tax up to 10.75%. Property taxes are relatively moderate for the area at about 0.56%. The HPAP program is one of the most generous in the nation, with up to $202,000 for very low income buyers.
Federal programs complement state offerings in District of Columbia. FHA loans require just 3.5% down with flexible credit requirements. VA loans provide zero-down-payment financing for veterans and active-duty military, particularly relevant near multiple military installations. USDA loans offer zero-down-payment options in eligible rural areas, which cover significant portions of District of Columbia.
Prospective buyers should compare all available options, as combining state and federal programs can dramatically reduce out-of-pocket costs. Working with a HUD-approved housing counselor can help navigate the application process and identify the best program combination for your situation.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: March 30, 2026.