DC Open Doors Program: Eligibility, Loans, and Down Payment Aid

The DC Open Doors program is a District of Columbia Housing Finance Agency (DCHFA) initiative that pairs a below-market 30-year fixed-rate mortgage with an interest-free, no-payment down payment loan for people buying a home in Washington, D.C. Borrowers earning up to $275,400 can qualify, both first-time and repeat buyers are eligible, and you don’t have to already live in the District to use it.¹

Who Qualifies

The income cap is set at 170% of the Area Median Income, which currently works out to $275,400. That limit applies to the borrower’s income only, not the combined income of the household. If you’re buying with a spouse or partner who won’t be on the mortgage, their earnings don’t count against the cap.¹

You’ll also need a minimum credit score of 640, whether you choose an FHA, VA, or conventional loan through the program.¹

Debt-to-income limits vary by loan type. FHA caps DTI at 45% with a 640 score, rising to 50% if your score is 680 or higher. Conventional loans allow up to 50% DTI as long as your score meets the 640 minimum. VA loans cap at 45%.²

Both first-time and repeat buyers can apply. You don’t need to be a current D.C. resident; the only residency rule is that you must occupy the home you buy as your primary residence.¹

Co-signers are not allowed. If you need another person’s income to qualify, that person has to be a co-borrower on the loan. Non-occupant co-borrowers are permitted on conventional loans when the arrangement meets investor guidelines, but not on FHA or VA loans through this program.²

Eligible Properties

The property has to be inside D.C. and has to be your primary residence. Within those limits, DC Open Doors covers:

Single-family homes, detached or semi-detached
Townhomes
Condominiums that meet the servicer and investor guidelines for your loan type
Multi-unit properties of one to four units, subject to loan-type-specific guidelines

Manufactured homes and cooperative housing units are not eligible.²

DCHFA does not impose a purchase price limit on DC Open Doors loans, which matters in a market with D.C.’s prices. The one exception is if you pair the loan with a Mortgage Credit Certificate, which carries its own price restrictions.²

The First Mortgage

DC Open Doors offers 30-year fixed-rate first mortgages in three categories: FHA (including standard 203(b) and 203(k) Streamline rehabilitation loans), VA, and conventional. Rates are typically below what you’d see on the open market.²

As of early May 2026, program rates ran from about 6.25% to 7.00%, depending on loan type, whether you took down payment assistance, and whether your income was above or below 80% AMI. A conventional loan without down payment assistance was priced at 6.375% for borrowers at or below 80% AMI, while an FHA loan with the 3.5% down payment assistance loan was priced at 6.750%. Rates change daily, and DCHFA notes that down payment assistance pricing may occasionally be unavailable during market volatility.³

Lenders can charge a maximum origination fee of 1%.²

The Down Payment Assistance Loan

The program’s signature feature is the Down Payment Assistance Loan, or DPAL. It sits as a second lien on the property, charges 0% interest, and requires no monthly payments. You can apply the money to your down payment, closing costs, or prepaid expenses like insurance and property taxes due at settlement.¹

How much you can borrow through the DPAL depends on your loan type:

Conventional loans: up to 3% of the purchase price
FHA loans: up to 3.5% of the purchase price
VA loans: up to 3% of the loan amount, not the purchase price

The VA distinction can matter when the loan amount and purchase price don’t line up.²

When You Have to Pay It Back

The DPAL balance stays dormant until one of four things happens:

You sell or transfer the property
You refinance your first mortgage
The property stops being your primary residence
Thirty years pass from the date the loan closed

Because the loan carries 0% interest, the payoff at any of those moments is simply the original amount you borrowed.²

The refinance trigger is the one that catches owners later. DCHFA DPALs are not eligible for subordination. If rates drop and you want to refinance your first mortgage, you can’t just move the DPAL behind the new loan. It becomes due and payable in full. Plan for that before you close: a future refinance will mean paying the DPAL off in cash or rolling it into the new loan balance.²

Stacking with HPAP and the MCC

Buyers who also qualify for D.C.’s Home Purchase Assistance Program (HPAP), run by the Department of Housing and Community Development, can combine the two. HPAP provides up to $202,000 in interest-free gap financing plus another $4,000 for closing costs.⁴

When both programs are used together, the HPAP loan takes the second lien position and the DPAL moves to third. Other subordinate financing from acceptable sources is also allowed if it meets the FHA or conventional guidelines for your loan type.²

HPAP has its own income limits, so qualifying for DC Open Doors does not guarantee HPAP eligibility. Borrowers below 80% of the median family income get full deferral on the HPAP loan until they sell, cash-out refinance, or leave the home. Those earning between 80% and 110% get a five-year deferral followed by a 40-year repayment period with no interest.⁴

DCHFA also offers a Mortgage Credit Certificate that can be paired with a DC Open Doors loan. The MCC gives you a federal tax credit worth up to 20% of the mortgage interest you pay each year, which directly reduces your tax bill rather than just your taxable income. Pairing an MCC with DC Open Doors triggers purchase price limits that otherwise don’t apply, so bring it up with your lender early.

How to Apply

You can only access DC Open Doors through a DCHFA-approved participating lender. The agency keeps a searchable directory at dchfa.org/homeownership/find-a-lender/. No other lender can originate these loans.

Your lender reserves funding for both the first mortgage and the DPAL through DCHFA’s portal, submits the complete loan file at least five business days before the targeted closing date, and waits for DCHFA’s commitment letter. At settlement, DCHFA wires the DPAL funds directly to the settlement agent, with two business days’ notice required before funding.²

Homebuyer Education

First-time buyers using a conventional loan through DC Open Doors must complete a homebuyer education course before closing. The acceptable course depends on which underwriting system your lender uses. For Freddie Mac files, CreditSmart or any course offered by a HUD-approved counseling agency qualifies. For Fannie Mae files, the Framework online course works, as does any program meeting the National Industry Standards for Homeownership Education and Counseling. FHA borrowers follow FHA’s own counseling guidelines.⁵

You’ll need to submit your completion certificate with the loan package. Some courses take a full day, so don’t leave it until the end.

Documents to Gather

Expect to provide the last two years of federal tax returns, pay stubs covering the last 30 to 60 days, and bank statements from the previous two months showing the source of funds for the transaction. Your lender uses these to calculate your qualifying income, verify assets, and set the exact DPAL amount you’re eligible for.

Closing Costs to Plan For

Even with the DPAL covering your down payment, budget for D.C.’s deed recordation tax, which hits every purchase. Residential properties under $400,000 are taxed at 1.1% of the purchase price; properties at $400,000 or more are taxed at 1.45% on the entire amount. D.C. also charges a separate deed transfer tax at the same rates, though that one is typically the seller’s responsibility. Confirm who pays what in your purchase contract.⁶

On top of taxes, plan for title search and insurance, lender fees (origination capped at 1% through DC Open Doors), and settlement charges. You can apply the DPAL to these costs, but if closing expenses run higher than the DPAL amount, you’ll need to cover the difference out of pocket or negotiate seller concessions.

1
DC Housing Finance Agency. DC Open Doors
2
District of Columbia Housing Finance Agency. DC Open Doors Lender Manual
3
DC Housing Finance Agency. Lenders – DCHFA
4
DC Department of Housing and Community Development. Home Purchase Assistance Program
5
District of Columbia Housing Finance Agency. DC Open Doors Home Buyer Education Requirements
6
DC Office of the Chief Financial Officer. Tax Rates and Revenues, Property Taxes