Overview
Washington, DC is one of the country's pricier markets, with a median home price hovering between $650,000 and $700,000 in 2026. That's a steep barrier — but DC also runs what may be the single most generous down payment assistance program in the nation. The DC Housing Finance Agency (DCHFA) and the Department of Housing and Community Development (DHCD) together administer assistance that, for qualifying lower-income buyers, can cover a six-figure chunk of the purchase. The distinctive hook here is scale: where most states offer a few thousand dollars, DC's flagship can deliver up to $202,000 toward your down payment.
That flagship is the Home Purchase Assistance Program (HPAP). It provides up to $202,000 in gap financing plus another $4,000 toward closing costs, structured as a deferred, interest-free loan to first-time District buyers. Deferred is the key word: you make no monthly payments and accrue no interest for the first five years for lower-income tiers, after which repayment terms phase in based on your income band, and the loan is ultimately due on sale or transfer. To qualify you generally must be a first-time buyer (no ownership in the prior three years), buy a primary residence in DC, and fall within HPAP's income limits — set up to 110% of area median income, with the largest awards reserved for very-low and low-income households.
State Programs
Home Purchase Assistance Program (HPAP)
Deferred, interest-free loan (down payment + closing cost gap financing)DC Open Doors
Below-market first mortgage + deferred 0% non-amortizing down payment assistance loanDCHFA Mortgage Credit Certificate (where offered)
Federal mortgage interest tax creditFederal 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
DC's other major tool is DC Open Doors, run by DCHFA, and it pairs neatly with — or stands apart from — HPAP. Open Doors provides a Down Payment Assistance Loan that covers your full minimum required down payment as a deferred, zero-interest, non-amortizing second loan (due in 30 years or on sale/refinance), alongside a below-market first mortgage. Notably, Open Doors does not require first-time-buyer status and allows income up to 170% of AMI — so move-up buyers and higher earners who don't qualify for HPAP can still get help. Many buyers layer the two: Open Doors for the first mortgage and minimum down payment, HPAP for the deeper gap financing.
On taxes, DC is a high-tax jurisdiction on income but surprisingly moderate on property. The income tax is steeply graduated, running from 4% up to 10.75% on income over $1 million — among the highest top rates anywhere. Property tax, though, is gentle: the effective rate is about 0.61% of value, and the homestead deduction knocks roughly $91,950 off your assessed value for your primary residence. On a $650,000 home, that deduction alone saves several hundred dollars a year, bringing a typical bill to around $3,400 annually (about $285 a month) before any further credits. For a city this expensive, the property-tax line is one of the few places buyers catch a break.
DC is dense with federal and military employment — think the various armed-services headquarters and nearby installations like Joint Base Anacostia-Bolling — which makes VA loans highly relevant; a VA loan can be combined with DC Open Doors and HPAP. Practical next steps: because HPAP is administered through community-based organizations and funded on a fiscal-year, first-come basis, get in early. Complete the required homebuyer education and counseling through a HUD-approved DC counseling agency — it's mandatory for HPAP — and work with a DCHFA-participating lender. Start at dchfa.org and dhcd.dc.gov to confirm current income limits and funding status.
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: June 15, 2026.