Washington, D.C. Mortgage Guides

Washington, D.C. First-Time Home Buyer Guide 2026

This guide for Washington, D.C. first-time home buyers covers DHCD’s Home Purchase Assistance Program (HPAP), DCHFA’s DC Open Doors, the reduced recordation tax rate for first-time D.C. buyers, income limits, eligibility requirements, and a step-by-step plan for buying your first home in the District.

📖 9 min readUpdated October 2026Washington, D.C. · First-Time Buyers

$202,000HPAP maximum gap financing

$4,000HPAP closing cost assistance

0.725%First-time buyer recordation tax rate

640DC Open Doors minimum credit score

In This Guide

Washington, D.C. Home Purchase Assistance Program (HPAP)
DC Open Doors down payment assistance
Reduced recordation tax for first-time D.C. buyers
Income and purchase price limits
Eligibility requirements
Step-by-step buying process
Washington, D.C. first-time home buyer FAQs

Washington, D.C. Home Purchase Assistance Program (HPAP)

HPAP is run by the D.C. Department of Housing and Community Development (DHCD). It provides interest-free loans and closing cost assistance to qualified first-time buyers purchasing a single-family house, condominium or cooperative unit in the District. The loan is subordinate to a private first trust mortgage, and HPAP does not accept seller-backed financing.

Feature	Detail
Gap financing	Up to $202,000, interest-free, based on household size, income, need and available funds
Closing cost assistance	Up to $4,000, separate from and in addition to gap financing
Repayment — below 80% of median family income	Deferred until the home is sold, refinanced to take out equity, or no longer your primary residence
Repayment — 80% to 110% of median family income	Deferred five years, then principal-only payments over 40 years
Your contribution	$500 or 50% of liquid assets above $3,000, whichever is greater
First trust loan	Cannot exceed the FHA conventional conforming loan limit, per DHCD
How to apply	Through a DHCD Community Based Organization (housing counseling agency)

HPAP funding is first-come, first-served. DHCD assists applicants in order as funds allow, and D.C. residents are prioritized over non-residents. Confirm current funding with a Community Based Organization before you shop. Program details: DHCD HPAP eligibility and program details.

DC Open Doors Down Payment Assistance

DC Open Doors is offered by the D.C. Housing Finance Agency (DCHFA) through participating lenders. It pairs a below-market first trust mortgage with a Down Payment Assistance Loan (DPAL) that can cover your full required minimum down payment. You do not have to be a first-time buyer or a current D.C. resident.

Feature	Detail
Down payment assistance	DPAL for the full required minimum down payment
DPAL terms	0%, deferred, no monthly payments
DPAL due	At 30 years, sale or transfer, when the home is no longer your principal residence, or when you refinance the first trust
Who can apply	First-time and repeat buyers; residents and non-residents; all neighborhoods and wards
Maximum income	$275,400 (170% AMI) — borrower income only, not household
Minimum credit score	640
Maximum debt-to-income	50% (FHA 45%; FHA with a 680 score, 50%)
Maximum first trust / sales price	$1,249,125 first trust; no maximum sales price

Terms are subject to change without notice. DCHFA confirms eligibility through your participating lender. Current terms and the lender list: DC Open Doors at dchfa.org.

Reduced Recordation Tax for First-Time D.C. Buyers

D.C. normally charges a deed recordation tax of 1.1% for residential deeds under $400,000 and 1.45% at $400,000 and above. Under D.C. Code § 42-1103(e), an eligible first-time District homebuyer pays a reduced rate of 0.725% on a deed of title, and the entire benefit goes to the buyer.

Purchase Price	Standard Recordation Tax	First-Time Buyer Rate (0.725%)
$350,000	$3,850 (1.1%)	$2,538
$500,000	$7,250 (1.45%)	$3,625
$700,000	$10,150 (1.45%)	$5,075

To qualify, you must be a first-time District homebuyer and bona fide D.C. resident, your household income must be within the limit below, the price must be no more than $794,000, and you must apply for the homestead deduction. Form and limits: OTR Form ROD 11.

Income and Purchase Price Limits

Each program sets its own limits. HPAP limits below are from DHCD’s assistance table for loans closed after July 1, 2026; the recordation tax limits are from OTR Form ROD 11, effective October 1, 2026.

Household Size	HPAP Maximum Income (81–110% MFI tier)	First-Time Recordation Rate Maximum Income
1 person	$127,900	$209,340
2 persons	$146,150	$239,220
3 persons	$164,450	$269,100
4 persons	$182,700	$298,980
5 persons	$194,100	$322,920
6 persons	$194,100	$346,860
7 persons	$194,100	$370,800
8 persons	$194,100	$394,740

Higher income means less HPAP assistance. The HPAP column is the top income tier, which receives $70,000. Households at or below 50% of median family income (for example, $83,050 for four people) can receive the full $202,000. The first-time recordation rate carries a $794,000 price ceiling; DC Open Doors has a $275,400 borrower-income limit and no price ceiling. Full HPAP tiers: DHCD HPAP assistance table, July 2026.

Washington, D.C. Down Payment Assistance Eligibility Requirements

Requirements differ by program. In general:

HPAP: Head of household and first-time buyer, with no ownership interest in residential real estate in the three years before applying; very low- to moderate-income; good credit rating; the home must be your primary residence in D.C.
DC Open Doors: 640 minimum credit score; borrower income up to $275,400; maximum debt-to-income 50%; first-time buyer status and D.C. residency not required
First-time recordation rate: First-time District homebuyer and bona fide D.C. resident; household income within the ROD 11 limit; price up to $794,000; homestead deduction application submitted
Primary residence: All three programs are for homes you will live in

Step-by-Step Buying Process for Washington, D.C. First-Time Home Buyers

Step	What to Do	Notes
1	Check your credit score	DC Open Doors requires at least 640; HPAP requires a good credit rating.
2	Contact a DHCD Community Based Organization	Required to apply for HPAP; ask about current funding.
3	Find a participating DC Open Doors lender	Not every lender offers DCHFA programs — use DCHFA’s lender list.
4	Get pre-approved	Your lender confirms which first mortgage and assistance combination fits.
5	Shop within your limits	The first-time recordation rate applies only up to a $794,000 price.
6	Close and record	File ROD 11 for the reduced recordation rate and apply for the homestead deduction.

Washington, D.C. First-Time Home Buyer FAQs

What’s the difference between HPAP and DC Open Doors?

HPAP is DHCD’s program for first-time buyers with very low to moderate incomes, offering up to $202,000 in interest-free gap financing plus up to $4,000 for closing costs. DC Open Doors is DCHFA’s program through participating lenders: a below-market first mortgage plus a 0% deferred loan for the full minimum down payment, open to first-time and repeat buyers with borrower income up to $275,400.

Do I have to repay HPAP?

Yes, but repayment is deferred. Below 80% of median family income, nothing is due until you sell, refinance to take out equity, or stop living in the home. Between 80% and 110%, payments are deferred five years, then principal-only payments run over 40 years.

How much can I save on the D.C. recordation tax as a first-time buyer?

Eligible first-time District homebuyers pay 0.725% instead of 1.1% (under $400,000) or 1.45% ($400,000 and up). On a $700,000 home that is $5,075 instead of $10,150. The price must be $794,000 or less and household income within OTR’s ROD 11 limits.

Do I need to live in D.C. already to get assistance?

Not for DC Open Doors, which is open to non-residents. HPAP accepts non-resident applications but processes them only when no D.C. resident applications are pending. The reduced first-time recordation rate requires that you be a bona fide D.C. resident.