Washington DC Mortgage Overview
The nation's capital is a beautiful place
for anyone to live. It's also quite costly, which means financing programs are
very helpful for first-time and subsequent homebuyers. If you're in the market
for a loan in Washington DC, here are your options.
Washington DC conventional loans
You need just
3 percent down if you're a first-time homebuyer, but 5 percent if you've owned
a home before. Conventional loans require a 660 credit score and low debt
ratio. You will pay PMI with the lower down payment, but you can cancel it when
you owe less than 80 percent of the home's value.
Washington DC FHA loans
FHA loans don't require
great credit. You can get a loan with just a 580 score for a 3.5 percent down
payment and a 500 - 579 score if you put down 10 percent. FHA loans have
mortgage insurance for the life of the loan, but you get flexible underwriting
guidelines in return.
Washington DC VA loans
Veterans of the
military can secure 100 percent financing with a VA loan. All you need is a 620
credit score and proof you have enough money to cover your bills. The VA looks
at your disposable income too so they know you can cover the daily cost of
living. VA loans don't have mortgage insurance, but they have a funding fee.
Washington DC USDA loans
If you can't get an
FHA loan, consider a USDA loan. You don't have to live in the middle of nowhere
- just a rural area as deemed by the USDA. Your income must fall within the
USDA guidelines. If you are eligible, you can get a 100 percent loan, which
means you don't need a down payment.
First-Time Homebuyer
Programs in Washington DC
Home Purchase Assistance Program
This is an
interest-free loan that helps first-time homebuyers buy their first home. You
may receive up to $80,000 in gap financing and $4,000 for closing cost
assistance.
Employer-Assisted Housing Program
This 0%
deferred loan provides District employees with the funds to buy a home. You
don't owe any payments until you sell the home or refinance the loan.
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