Washington, DC Mortgage Broker

Loan options in Washington, DC

Duane compares programs for your scenario and explains the tradeoffs before you commit.

• Conventional. Purchase and refinance loans with as little as 3% down for qualifying buyers. Mortgage insurance can come off as your equity grows.
• FHA. As little as 3.5% down with qualifying credit, and more flexible credit guidelines. FHA carries an upfront and an annual mortgage insurance premium.
• VA. The Washington region has a large veteran and federal workforce community. VA loans can be $0 down for eligible borrowers, with no monthly mortgage insurance. A funding fee usually applies unless exempt.
• Jumbo. For loan amounts above the conforming limit in your county. Expect closer review of down payment, reserves and documentation.
• Refinance. Lower the rate, shorten the term or take cash out. Compare the break-even point against how long you plan to stay.

Buying in Washington, DC: what to know

• Transfer and recordation taxes. DC charges both on a purchase, and relief can apply in some cases. Ask your settlement agent for exact numbers.
• Condos and co-ops. Many DC homes are condos or co-ops. Condo approval depends on the building's budget, reserves and owner occupancy. Co-ops are financed differently and fewer lenders do them, so raise it early.
• High-cost loan limits. DC sits in a high-cost area with higher conforming limits than most of the country.
• Property tax and homestead. DC offers a homestead deduction on a primary residence and other relief for some owners. Confirm eligibility with the Office of Tax and Revenue.
• Older homes. Many DC homes are older. Appraisal and inspection items can matter more on FHA and VA loans.