Washington, DC is a very expensive city to live in. One of the most expensive in the country. That’s the not so good news. The very good news is that owning a property in the District is a very valuable piece of real estate.
If you are just getting started on homeownership journey, you may be considering purchasing a condo.
The District of Columbia Housing Finance Agency, or DCHFA, offers several programs designed to help homebuyers. One of the most popular programs is DC Open Doors.
The DC Open Doors Program offers conventional and FHA mortgages at below-market interest rates. Qualified borrowers can also get down a zero-interest non-amortizing (no monthly payments) down payment assistance loan (DPAL).
The DC Open Doors DPAL is available to all homebuyers that qualify under the DC Open Doors Program through a Participating Lender. Eligible borrowers may borrow up to 3% of the purchase price for conventional Loans or 3.50% of the purchase price for FHA Loans.
This zero payment loan is not due until one of the following:
- Thirty (30) years from the date of loan closing
- Sale or any transfer (by gift or otherwise) of the property to another person, business, or entity
- Property ceases to be your principal residence
- Refinancing your first trust mortgage
The new maximum loan limit for DC Open Doors is $510,400.
DC Open Doors Conventional/FHA
|Maximum Borrower Income||$151,200|
|Maximum Sales Price||N/A|
|Maximum Loan Amount||$510,400|
There are several eligible property types with the DC Open Doors Program including single family detached or semi-detached, townhomes and of course condos. (Coops are not eligible for the program.)
Purchasing a Condo w/ DC Open Doors
It is very simple to use DC Open Doors for a purchasing a condo in the District. One thing you should know– it is very likely you will need to use a conventional loan to purchase a condo in Washington. DC.
Why? Most condos in the District are not FHA insured properties. Therefore, FHA loan financing is not possible. But, its no problem to get conventional loan financing.
As of 09/17/2020, the HFA Conventional rate w/ DPA > 80% AMI is 3.875%
- We’re going live to discuss DC Open Doors! [11/04/2020]
- How DC Open Doors Works For You In 2020
- DC Open Doors Makes Homeownership in the District Achievable (2020)
- Buying a Condo with DC Open Doors
- Find a DC Open Doors Approved Lender
- Check Out Our DC Open Doors FAQs