Down payment assistanceWashington, DC
HomeAdvantage DC (DCHFA Mortgage Revenue Bond Program)
Below-market 30-year fixed rate, plus optional 3% (conventional) or 3.5% (FHA/VA) down payment assistance
HomeAdvantage DC is DCHFA's bond-funded first mortgage, launched 2026-05-01, with a rate below the standard market rate. You can take it with no assistance, or add DCHFA's Down Payment Assistance Loan of up to 3% of the price on conventional or 3.5% on FHA and VA. The assistance is a 0% second with no monthly payment, repaid when you sell, move out, refinance, or at 30 years. It is not forgiven.
Funding was available the last time we checked.
New in 2026, effective May 1, 2026.
Last verified Sep 23, 2026. Program terms change; confirm with the administrator before you rely on them.
At a glance
- Amount
- Below-market 30-year fixed rate, plus optional 3% (conventional) or 3.5% (FHA/VA) down payment assistance
- Type of help
- Reduced-rate mortgage
- Where
- Washington, DC
- Run by
- District of Columbia Housing Finance Agency (DCHFA)
- First-time buyer
- First-time buyers, with exceptions
- Income limit
- Yes, see below
- Price limit
- Yes, see below
- Minimum credit score
- 660
- Homebuyer education
- Required
How the reduced-rate mortgage works
A first mortgage at a below-market rate, sometimes bundled with assistance.
- Interest: Below-market first mortgage rate set by DCHFA; assistance loan at 0%
- Monthly payment: None
- When you would repay: The assistance loan is due at the earliest of 30 years from closing, sale or transfer, the home no longer being your principal residence, or refinancing the first mortgage.
Who qualifies
- First-time buyers, with exceptions. First-time buyer generally required under federal bond rules (no ownership of a principal residence in the last three years). Buyers in federally designated targeted areas of DC may be exempt. Ask the lender to check the property address.
- Income. Household income of everyone age 18 and over who will live in the home, not just borrowers. Limits effective 2026-05-01: $116,300 for 1 person, $132,900 for 2, $149,500 for 3, $166,100 for 4, $179,400 for 5, $192,700 for 6, $206,000 for 7, $219,300 for 8. In targeted areas the limits are 140% of those figures, from $162,820 for 1 person to $307,020 for 8.
- Price. Up to $1,306,974 in non-targeted areas and $1,597,413 in targeted areas (checked 2026-09-23).
- Property types: Single-family, Townhouse, Condo. Must be your primary residence.
- Maximum debt-to-income ratio 50%. FHA loans above 45% need a HUD compensating factor such as three months of reserves or a minimal payment increase with a clean 12-month housing history.
- Conventional, FHA, and VA 30-year fixed loans only, through a DCHFA participating lender.
- The home must be in the District of Columbia and be your primary residence.
- DCHFA says homebuyer education may be required. Expect it if you are a first-time buyer.
| Area | 1 person | 2 people | 3 people | 4 people | 5 people | 6 people | 7 people | 8 people |
|---|---|---|---|---|---|---|---|---|
| Washington, DC | $116,300 | $132,900 | $149,500 | $166,100 | $179,400 | $192,700 | $206,000 | $219,300 |
| Washington, DC (targeted areas) | $162,820 | $186,060 | $209,300 | $232,540 | $251,160 | $269,780 | $288,400 | $307,020 |
How to apply
- 1Register for DCHFA's monthly two-part homebuyer webinar to learn the program details, then choose a lender from DCHFA's participating lender list.
- 2If you are a first-time buyer, complete an approved homebuyer education course early. Your lender will tell you which providers DCHFA accepts.
- 3Get pre-approved. Your lender checks household income against the bond limits, confirms the 660 score, and tells you whether the address sits in a targeted area.
- 4Go under contract on a home in DC. Your lender reserves the bond rate and, if you want it, the 3% or 3.5% assistance loan in DCHFA's system.
- 5At closing you sign the first-time homebuyer and income declaration and a recapture tax notice required for bond-funded loans. DCHFA wires the assistance to the title company.
Watch out for
- Income counts everyone 18 and older who will live in the home, whether or not they are on the loan. A working adult child or partner can push you over the limit even if they are not borrowing.
- Bond-funded loans carry a federal recapture tax rule if you sell within nine years, your income has risen above IRS limits, and you profit on the sale. DCHFA has committed to reimburse recapture tax for buyers who close on or after 2026-05-11, so keep the notice you sign at closing.
- The assistance option may come with a higher first mortgage rate than the no-assistance option. Have your lender show both.
- The assistance loan is deferred, not forgiven, and DCHFA does not subordinate it on a refinance.
- The 660 minimum score is higher than DC Open Doors at 640. If you are between the two, DC Open Doors may be the fit.
- New program. Rates, limits, and rules are subject to change without notice, and DCHFA updated the lender page as recently as 2026-09-23.
This is DCHFA's newest product and the one to compare against a regular market rate. For a first-time buyer under the income limits with a 660 score, the rate alone can beat other programs.
Straight answers
How is HomeAdvantage DC different from DC Open Doors?
HomeAdvantage DC is funded by tax-exempt bonds, so it offers a below-market rate but comes with federal rules: first-time buyer status (with targeted-area exceptions), household income limits that count all adults in the home, purchase price caps, and a recapture tax provision. DC Open Doors has no first-time rule, counts only borrower income, and has a 640 minimum score instead of 660.
What is a targeted area?
Census tracts the federal government designates as economically distressed. Buying in one lifts the first-time buyer requirement and raises the income and price limits to $307,020 for an 8-person household and $1,597,413. Your lender can check a specific address.
Is the down payment assistance a grant?
No. It is a 0% second loan with no monthly payment, repaid when you sell, move out, refinance the first mortgage, or after 30 years. DCHFA's fee schedule allows only the deed of trust recording fee on it.
What is the recapture tax?
A federal rule for bond-financed mortgages. If you sell within nine years, your income has grown past IRS thresholds, and you have a gain, you may owe extra federal tax that year. No tax applies after nine years. DCHFA says it will reimburse recapture tax paid by buyers who purchased on or after 2026-05-11, but you must file the IRS form and provide documentation.
Sources
- DCHFA, HomeAdvantage DC program page (read Sep 23, 2026)
- DCHFA, HomeAdvantage DC lender page (income limits effective 5/1/2026, program documents) (read Sep 23, 2026)
- DCHFA, HomeAdvantage DC income limits table (image, effective 5/1/2026) (read Sep 23, 2026)
- DCHFA, SFMRB Initial Recapture Tax Notice and reimbursement policy (PDF) (read Sep 23, 2026)
- DCHFA, Loan Disclosure for Down Payment Assistance (DPAL terms, PDF) (read Sep 23, 2026)
- DCHFA, Fees by Program effective 05-26-2026 (PDF) (read Sep 23, 2026)
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.
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.