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Down payment assistanceWashington, DC

Accepting applications Washington, DC · District-wide

DC4ME VA Loan Product for Military-Connected Buyers (DCHFA)

VA first mortgage with 3% of the loan amount toward closing costs and prepaids, funded by DCHFA

DC4ME VA is DCHFA's VA loan, launched in July 2025. You get the usual VA benefits, no required down payment for most borrowers and no monthly mortgage insurance, plus 3% of the loan amount from DCHFA to pay closing costs, prepaids, or the VA funding fee if you are not exempt. DCHFA's lender documents structure its VA assistance as a 0% deferred loan of 3% of the loan amount with no monthly payment, repaid at sale, refinance, move-out, or 30 years. Have your lender confirm the repayment terms in writing before you rely on them.

Funding was available the last time we checked.

Launched July 2025 for military-connected buyers.

Last verified Sep 23, 2026. Program terms change; confirm with the administrator before you rely on them.

At a glance

Amount
VA first mortgage with 3% of the loan amount toward closing costs and prepaids, funded by DCHFA
Type of help
Deferred loan
Where
Washington, DC
Run by
District of Columbia Housing Finance Agency (DCHFA)
First-time buyer
Repeat buyers welcome
Income limit
None
Price limit
Yes, see below
Minimum credit score
640
Homebuyer education
Not required

How the deferred loan works

A second loan with no interest and no payment. You repay it when you sell, refinance, or pay off the first mortgage.

  • Interest: VA first mortgage rate set by DCHFA; assistance at 0%
  • Monthly payment: None
  • When you would repay: DCHFA's down payment assistance loan terms make the assistance due at the earliest of 30 years, sale or transfer, the home no longer being your principal residence, or refinancing the first mortgage. Confirm the note your lender presents.

Who qualifies

  • Repeat buyers welcome. DCHFA does not list a first-time buyer requirement for the DC4ME VA product.
  • Income. No income limit. DCHFA states no income limits apply, but VA residual income rules must be met (checked 2026-09-23).
  • Price. No sales price cap published. Loans go up to conforming limits with no cap on VA entitlement for eligible borrowers (checked 2026-09-23).
  • Only for: active military, veterans.
  • Property types: Single-family, Townhouse, Condo, 2-4 units. Must be your primary residence.
  • Veterans with sufficient entitlement and service history, active-duty service members, Reservists and National Guard members, and surviving spouses of veterans who died in service or from a service-connected disability. A VA Certificate of Eligibility is required.
  • Maximum debt-to-income ratio 45%, with compensating factors considered. Lender overlays may vary.
  • The home must be in the District of Columbia and be your primary residence. On a 2 to 4 unit property you must live in one unit.
  • DCHFA does not list District government employment as a requirement for the VA product. Confirm with a participating lender.

How to apply

  1. 1Get your VA Certificate of Eligibility through the VA or your lender.
  2. 2Choose a lender from DCHFA's participating lender list and ask for the DC4ME VA Loan Product. Ask the lender to show the rate with the 3% assistance and the rate without it.
  3. 3Get pre-approved under VA underwriting, including residual income and the 640 score.
  4. 4Find a home in DC, go under contract, and your lender reserves the loan and the assistance in DCHFA's system.
  5. 5At closing the 3% is applied to allowable closing costs, prepaid taxes and insurance, or the VA funding fee. Many VA loans close in 30 days or less.
Official program page

Watch out for

  • The version with assistance carries a higher first mortgage rate than the version without. DCHFA posts both rates on its lender page. Run the math on how long you plan to stay.
  • DCHFA calls the 3% assistance, and its lender documents treat DCHFA down payment assistance as a deferred 0% loan due at sale, refinance, move-out, or 30 years. Ask for the note and deed of trust terms before you commit.
  • A VA loan can be 100% financing, but closing costs and prepaids are real money. The 3% is meant to cover those, and any excess cannot come back to you as cash.
  • Sellers can still pay up to 4% toward allowable costs on a VA loan. Combine a seller credit with the 3% only up to what the costs actually are.
  • The VA funding fee is waived for many disabled veterans and eligible surviving spouses. If you are not exempt, the 3% can pay it.

For a veteran or service member buying in DC, this is worth a look next to a regular VA loan. The 3% covers most or all closing costs, so you can truly buy with very little cash.

Sean Evans, REALTOR®

Straight answers

Who qualifies?

Veterans with sufficient entitlement and service history, active-duty service members, certain Reservists and National Guard members, and surviving spouses of veterans who died in service or from a service-connected disability. You need a VA Certificate of Eligibility, a 640 or higher score, and a debt-to-income ratio at or under 45%. There is no income limit, but VA residual income rules apply.

What can the 3% be used for?

DCHFA provides 3% of the loan amount toward allowable closing costs, prepaid property taxes and insurance, escrow setup, recording fees, title charges, and the VA funding fee if it is not waived for you.

Can I buy a duplex or a four-unit building?

Yes. DCHFA allows 1 to 4 unit properties and condos as long as one unit is your primary residence.

Do I have to work for the DC government?

DCHFA lists the VA product under its DC4ME brand but describes eligibility in terms of military service, not District employment. Confirm with a participating lender.

Sources

Program details are summarized from public sources and change without notice. Funding badges reflect the last time we checked, not a guarantee of availability. This is buyer education from a real estate agent, not a loan pre-approval or a commitment to lend. Eligibility is decided by each program administrator and your lender. Equal Housing Opportunity.

Get Sean’s help

Programs are the easy part. Timing is the hard part.

Most buyers lose assistance on a deadline, not on eligibility. Sean helps you map out the counseling, the lender conversation, and the contract dates so nothing slips.

Get in touch(240) 221-5907