Washington, D.C. Mortgage Guide 2026
This Washington, D.C. mortgage guide covers everything you need to know about getting a mortgage in the District — 2026 FHA and conforming loan limits, HPAP and DC Open Doors down payment assistance, property taxes, recordation and transfer taxes, and an overview of the D.C. housing market.
Washington, D.C. Mortgage Guide: Loan Limits (2026)
The District of Columbia is a single jurisdiction for loan limit purposes, so one set of 2026 limits applies everywhere in the city. Both the FHA limit and the conforming loan limit sit at the 2026 national high-cost ceiling of $1,249,125 for a one-unit home.
| County | Conforming Limit | FHA Limit | Notes |
|---|---|---|---|
| District of Columbia — 1 unit | $1,249,125 | $1,249,125 | 2026 high-cost ceiling |
| District of Columbia — 2 units | $1,599,375 | $1,599,375 | 2026 high-cost ceiling |
| District of Columbia — 3 units | $1,933,200 | $1,933,200 | 2026 high-cost ceiling |
| District of Columbia — 4 units | $2,402,625 | $2,402,625 | 2026 high-cost ceiling |
One limit for the whole District. HUD and FHFA both list the District of Columbia as a single area within the Washington-Arlington-Alexandria metro, and both set it at the 2026 ceiling. Confirm at HUD’s official lookup tool and in FHFA’s 2026 conforming loan limit data.
Loan Programs Available in Washington, D.C.
FHA, VA and conventional financing are available throughout the District, along with two local assistance programs. USDA financing is the exception — see the note in the table.
| Program | Min Down Payment | Min Credit Score | Best For |
|---|---|---|---|
| FHA | 3.5% | 580 | First-time buyers, lower credit scores |
| VA | 0% | 580–620 (lender overlay) | Veterans, active duty, surviving spouses |
| USDA | 0% | 640 | Not available inside the District — USDA’s map shows no eligible areas |
| Conventional | 3–20% | 620 | Strong credit, wants PMI cancellation |
| DC Open Doors (DCHFA) | 0% effective (DPAL covers the minimum down payment) | 640 | First-time and repeat buyers with borrower income up to $275,400 |
| HPAP (DHCD) | Applicant contribution: $500 or 50% of liquid assets above $3,000, whichever is greater | Good credit rating (DHCD) | First-time buyers with household income up to 110% of median family income |
DCHFA and DHCD Down Payment Assistance
Two District programs help with a down payment. The D.C. Housing Finance Agency (DCHFA) runs DC Open Doors through participating lenders, and the D.C. Department of Housing and Community Development (DHCD) runs the Home Purchase Assistance Program (HPAP). They are separate programs with different rules.
| Program | Assistance | Who Qualifies |
|---|---|---|
| DC Open Doors | Below-market first mortgage plus a 0% deferred Down Payment Assistance Loan (DPAL) for the full minimum down payment; no monthly payments | First-time and repeat buyers; residents and non-residents; borrower income up to $275,400 (170% AMI); 640 credit score; maximum first trust $1,249,125; no maximum sales price |
| HPAP | Up to $202,000 in interest-free gap financing, plus up to $4,000 in closing cost assistance | First-time buyers (no ownership interest in the past three years) buying a principal residence in D.C.; very low- to moderate-income households; D.C. residents prioritized |
HPAP assistance depends on income and household size. Households at or below 50% of median family income can receive the full $202,000; higher-income tiers receive less, up to 110% of median family income. HPAP funds are first-come, first-served — confirm current availability with a DHCD Community Based Organization. See the July 2026 HPAP assistance table and DC Open Doors terms at dchfa.org.
Washington, D.C. Property Taxes
The D.C. Office of Tax and Revenue (OTR) taxes Class 1 residential property at $0.85 per $100 of assessed value. For tax year 2026, the homestead deduction reduces the assessed value of an owner-occupied principal residence by $91,950. As a separate measure, the District’s estimated effective property tax rate is about 0.63% (median real estate taxes paid ÷ median owner-occupied home value, Census ACS 2024 B25103 and B25077).
Homestead deduction and assessment cap. An owner-occupied principal residence receives the $91,950 homestead deduction (tax year 2026), and the assessment cap credit limits the increase in its taxable assessment to 10% a year. Qualifying senior and disabled owners can receive a 50% reduction in their tax, and qualifying disabled veterans a $445,000 deduction. Details at OTR’s reliefs and credits page.
| Home Value | Est. Annual Tax ($0.85/$100 after $91,950 homestead deduction) | Monthly Escrow |
|---|---|---|
| $500,000 | $3,468 | ~$289 |
| $700,000 | $5,168 | ~$431 |
| $900,000 | $6,868 | ~$572 |
Your actual bill depends on your assessment. The estimates above assume the assessed value equals the home value and that the homestead deduction applies. They exclude the assessment cap and any other credit. Check your property’s assessment and tax with OTR before closing.
Closing Costs in Washington, D.C.
The largest D.C.-specific closing costs are two District taxes on the deed: the recordation tax under D.C. Code § 42-1103 and the transfer tax under D.C. Code § 47-903. Each is 1.1% of the consideration for residential property under $400,000 and 1.45% at $400,000 and above. Your lender’s Loan Estimate itemizes your actual costs.
| Fee | Rate / Amount | On a $700,000 Purchase |
|---|---|---|
| Deed recordation tax | 1.45% ($400,000+); 1.1% under $400,000 | $10,150 |
| Recordation tax, eligible first-time D.C. buyer | 0.725% (price ceiling $794,000) | $5,075 |
| Deed transfer tax (imposed on the seller) | 1.45% ($400,000+); 1.1% under $400,000 | $10,150 |
| Recording fee — deed | $25 + $5 surcharge | $30 |
| Recording fee — deed of trust | $150 + $5 surcharge | $155 |
| Loan origination fee | ~0.5–1% of loan amount | Varies by lender |
| Lender’s title insurance | Set by the title insurer; varies with loan amount | Get a quote |
Who pays the deed taxes. The transfer tax is imposed on the seller (§ 47-903). For the recordation tax, the grantor and grantee are jointly and severally liable (§ 42-1103(c)), so how it is split is negotiated in your contract — except the reduced first-time buyer rate, whose entire benefit goes to the buyer. Recording fees are set by the D.C. Recorder of Deeds.
Washington, D.C. Housing Market Overview (2026)
Washington, D.C. is a single city-and-county jurisdiction, so loan limits, tax rates and District programs are the same in every neighborhood. Prices and trends vary by neighborhood — check current local sales data before making an offer.
| Area | Market Notes |
|---|---|
| District-wide | One FHA and conforming limit applies across the entire District |
| Cooperative units | Co-op purchases carry their own recordation tax rates under D.C. Code § 42-1103 |
| Southeast, near Joint Base Anacostia-Bolling | Military households; see our VA guide for installation context |
| Southwest and the Navy Yard waterfront | Home to Fort McNair and the Washington Navy Yard |
| Lower-income buyers | HPAP, plus OTR’s Lower Income Home Ownership Tax Abatement, which exempts qualifying purchases from recordation and transfer taxes |
