Down Payment Assistance
Down Payment Assistance in District of Columbia (2026)
District of Columbia homebuyers can access up to $202,000 in down payment assistance through the DC Department of Housing and Community Development (DHCD). On the state's $601,400 median home price, that covers roughly 168% of a standard 20% down payment.
New to this? Quick definitions
- DPA —
- down payment assistance. Money — as a grant or loan — that helps cover the upfront cash you'd otherwise need to buy a home.
- Grant vs. loan —
- a grant is money you never repay. A loan (forgivable, deferred, or repayable) can come with strings attached, even at 0% interest.
- Forgivable loan —
- the balance is wiped out over time if you stay in the home — but it's still a real loan until then, and selling or refinancing early can trigger repayment.
- Deferred loan (silent second) —
- a second loan on your home with no monthly payments, often called a "silent second" because you won't notice it until you sell, refinance, or pay off your first mortgage — that's when it comes due.
- AMI —
- Area Median Income. The midpoint household income for your county, used to set eligibility — programs list limits as a percentage of AMI (e.g. 80% of AMI).
- Income limit —
- the maximum household income you can earn and still qualify, based on where you live and how many people are in your household.
- Purchase price cap —
- the maximum home price a program will help you buy — homes priced above the cap don't qualify, even if your income does.
Do you likely qualify?
The Home Purchase Assistance Program (HPAP) requires household income at or below 110% of Area Median Income for your county — many buyers qualify without realizing it, since this is often higher than expected.
Primary Program: Home Purchase Assistance Program (HPAP)
maximum assistance
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
- Administering Agency
- DC Department of Housing and Community Development (DHCD)
- Income Limit
- 110% of Area Median Income
How Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Mistakes first-time buyers make
- Assuming you don't qualify without actually checking the income limit for your county and household size.
- Treating a "forgivable" loan as free money — it can still come due in full if you sell or refinance before the forgiveness term ends.
- Stacking programs incorrectly, or assuming state and local programs combine automatically without confirming with your lender.
- Skipping the required homebuyer education course, which can delay or disqualify your application at closing.
Pro tips
- Talk to a HUD-approved housing counselor first — it's free and they know every program you may qualify for, not just the state's.
- Apply for mortgage pre-approval alongside your DPA program application; most DPA funds are disbursed through an approved lender at the same closing.
- Check local city and county programs in addition to the state program above — many are stackable and cover different costs.
- Ask exactly what triggers repayment on any loan-based assistance before you sign, not after.
Down Payment Calculator
Down Payment Planner
District of Columbia median pre-loaded
Your Savings Plan
Timeline
20.1 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →What the Assistance Does on a $601,400 District of Columbia Home
A worked example at District of Columbia's median home price (Zillow Home Value Index, April 2026), using the same payment model as the District of Columbia salary page: a 7.03% 30-year fixed rate (Freddie Mac PMMS, week of September 24, 2026), PMI from the National MI rate card on the 10%-down case, the state's effective property-tax rate and homeowners premium, and principal, interest, tax and insurance held to 28% of gross income.
How much of the down payment it covers
A 10% down payment on a $601,400 home is $60,140, and 20% is $120,280. The $202,000 Home Purchase Assistance Program (HPAP) maximum covers 100% of the first and 100% of the second, so the maximum alone exceeds a 10% down payment. How much of an award a buyer actually receives, and what any amount beyond the down payment may pay for, is set by the programme's own terms above.
The First Mortgage and Closing Taxes This Assistance Has to Cover in District of Columbia
Real Property Deed Transfer Tax (plus separate Deed Recordation Tax)
DC levies both a deed transfer tax (on the seller) and a deed recordation tax (parties jointly liable), each 1.1% for residential sales under $400,000 and 1.45% at $400,000 and above, applied to the full price. Eligible first-time DC homebuyers pay a reduced 0.725% recordation rate. (D.C. Code § 47-903 (transfer tax); D.C. Code § 42-1103 (recordation tax)). (Council of the District of Columbia (Code of the District of Columbia), retrieved 2026-09-14) Under that schedule a $601,400 sale owes $8,720, which the statute puts on the seller.
Recordation tax on security interest instruments (deeds of trust / mortgages)
DC taxes recorded deeds of trust at 1.1% of the secured debt, but purchase-money loans recorded with the purchase deed are exempt; refinances are taxed only on the net new principal. (D.C. Code § 42-1103(a)(3); exemption § 42-1102(5)). (Council of the District of Columbia (Code of the District of Columbia), retrieved 2026-09-14)
Recording fees
$150 to record a deed of trust, mortgage or modification; $25 for all other documents (including deeds); plus a $5.00 surcharge per D.C. Code § 42-1211 (District-wide, flat per document) (DC Office of the Chief Financial Officer, Office of Tax and Revenue, retrieved 2026-09-14)
DC Housing Finance Agency (DCHFA): DC Open Doors
DC Open Doors is the first-mortgage programme run by DC Housing Finance Agency (DCHFA). (DC Housing Finance Agency (DCHFA), retrieved 2026-09-14) Purchase-price limits: No maximum sales price limit (maximum first trust loan $1,249,125). (DC Housing Finance Agency (DCHFA), retrieved 2026-09-14) Down payment help comes through DC Open Doors Down Payment Assistance Loan (DPAL): Up to the full required minimum down payment, as a deferred 0% non-amortizing loan. (DC Housing Finance Agency (DCHFA), retrieved 2026-09-14) Minimum credit score: 640. (DC Housing Finance Agency (DCHFA), retrieved 2026-09-14)
Frequently Asked Questions
What down payment assistance is available in District of Columbia?
District of Columbia's primary DPA program is the Home Purchase Assistance Program (HPAP), administered by the DC Department of Housing and Community Development (DHCD). It provides up to $202,000 as a deferred loan. 0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
How much down payment do I need in District of Columbia after using DPA?
On a $601,400 home (District of Columbia median), a 20% down payment is $120,280. With the Home Purchase Assistance Program (HPAP) covering $202,000, your remaining gap would be $0. Many buyers combine DPA with a 3–5% conventional or FHA loan to reduce their cash needed further.
Do I have to repay District of Columbia down payment assistance?
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
Can I combine District of Columbia DPA with other assistance programs?
Yes — District of Columbia's DPA programs can generally be combined ("stacked") with local city and county assistance programs, employer homebuyer benefits, and federal programs. Check with an approved lender or HUD-approved counselor to identify all programs you qualify for.
What are the income limits for District of Columbia down payment assistance?
The Home Purchase Assistance Program (HPAP) requires income at or below 110% of the Area Median Income (AMI) for your county. AMI limits vary by location and household size. Your lender or the DC Department of Housing and Community Development (DHCD) can confirm the exact limit for your area.
Related Calculators
Home Affordability Calculator
See how much home you can afford in District of Columbia
PMI Calculator
Estimate private mortgage insurance on lower down payments
District of Columbia First-Time Buyer Programs
State mortgage programs with low rates and low down payments
Mortgage Payments by Price
See full PITI costs for 8 home prices in District of Columbia, from $200K to $750K
What to do next
Down payment assistance is one piece of the puzzle. Here's where to go depending on where you are in the process.
Not sure if you qualify?
Check the DC Department of Housing and Community Development (DHCD) income limits above before ruling yourself out — many buyers qualify without realizing it.
Want the full true cost picture?
DPA covers the down payment, not your ongoing costs. See the true cost of owning a home in District of Columbia for the full monthly picture.
Ready to apply?
Most DPA funds are disbursed through an approved lender at closing — get pre-approved and ask specifically about Home Purchase Assistance Program (HPAP) when you apply.