Owning a home in Washington, DC can feel financially out of reach. Prices are high, closing costs add up fast, and the down payment alone can seem like an impossible hurdle — especially in a city where renting is just as expensive.
But here's what a lot of people don't know: the District of Columbia has several programs specifically designed to close that gap. Some offer interest-free loans of up to $202,000. Some waive your property taxes for five years. Some are specifically tailored for DC government employees, first responders, and teachers.
Most buyers never hear about them — or hear about them too late.
Here's your primer.
Program 1: DC Open Doors
Best for: Buyers who need down payment help and don't want to wait
DC Open Doors is the most accessible down payment assistance program in the District, and one of the most flexible. It's administered by the DC Housing Finance Agency (DCHFA) and designed to help buyers across a wide range of incomes.
What it offers:
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Up to 3.5% of the purchase price in down payment assistance (FHA loans)
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Up to 3% of the purchase price for conventional loans
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Zero-interest, deferred loan — no monthly payments
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Repayment only required when you sell, refinance, or move out
Who qualifies:
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Borrower income must be at or below $199,200 — based on the borrower's qualifying income, not total household income
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You must be purchasing a single-family home, condominium, or property with up to four units in DC as your primary residence
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Minimum credit score of 640
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You do not need to be a current DC resident or a first-time homebuyer to apply
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DC Open Doors now allows you to own one other residential property
The fine print:
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Must work with a DCHFA-approved participating lender
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First-time buyers using a conventional loan must complete a homebuyer education course
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No personal asset limitations apply under the DC Open Doors program
Bottom line:
DC Open Doors is the program most buyers should explore first. With its generous income limits based only on the borrower, DC Open Doors is the perfect program for professionals and repeat buyers who have strong income but need assistance with the down payment.
Program 2: Home Purchase Assistance Program (HPAP)
Best for: DC residents with low to moderate income who need significant assistance
HPAP is the District's most powerful homebuyer program — and the most generous in terms of raw dollars. It's administered by the DC Department of Housing and Community Development (DHCD) and targets buyers who need meaningful gap financing to make a purchase work.
What it offers:
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Up to $202,000 in gap financing assistance for down payment, plus up to $4,000 in separate closing cost assistance
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Zero-interest, deferred loan — no monthly payments for very low and low-income buyers
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Moderate-income borrowers have payments deferred for five years, then principal-only repayments over 40 years
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Can be combined with other programs including EAHP (see below)
Who qualifies:
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Must be the head of the household and a first-time homebuyer
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Must be a very low- to moderate-income resident based on DHCD's standards
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Cannot have had ownership interest in any residential real estate within the three years prior to application
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The purchased home must be the borrower's primary residence and located within DC
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Must contribute a minimum of $500 or 50% of liquid assets over $3,000 toward the purchase
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Minimum credit score of 630
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Must complete an approved homebuyer education course
Important notes:
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DC residents are always the priority for HPAP assistance — non-residents are accepted but only processed when no resident applications are pending
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Due to high demand, the program operates on a first-come, first-served basis with funding rounds — timing your application matters
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HPAP assistance cannot exceed the mortgage loan the buyer is obtaining
Bottom line:
HPAP provides the most significant financial assistance available, but it is also the most complex. If you qualify, it's worth every bit of the process.
Program 3: Employer-Assisted Housing Program (EAHP)
Best for: DC government employees, first responders, and teachers
If you work for the District of Columbia government — including as a police officer, firefighter, EMT, paramedic, corrections officer, or public school teacher — the EAHP is one of the best deals in DC real estate. It's administered by DHCD and specifically designed to keep DC's workforce living in the city.
What it offers:
For all eligible DC government employees:
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Up to $20,000 in down payment and closing cost assistance as a deferred, zero-interest loan
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Matching grant funds of up to $5,000 — funds you don't have to pay back
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No income cap
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No cash contribution requirement
For first responders and educators (additional benefits):
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An additional $10,000 in down payment assistance as a recoverable grant, forgivable after five years of continued service and residency
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Matching grant funds up to $15,000
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Total potential assistance for first responders and educators: up to $30,000 in loans/grants plus up to $15,000 in matching funds
Who qualifies:
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Full-time District government employees in good standing with at least one year of service
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The one-year service requirement is waived for police officers, corrections officers, firefighters, EMTs, paramedics, and teachers in a public or public charter school
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Must be a first-time homebuyer in DC (no DC ownership in the past three years)
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No income cap — and no cash contribution requirement
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Can own property in another jurisdiction
Can you stack EAHP with HPAP?
Yes. All employees eligible for the EAHP First-Responder grant are also eligible for the standard $20,000 EAHP loan. Furthermore, District government employees who are also current DC residents can qualify for HPAP, combining the assistance toward the purchase of a property in the District.
Bottom line:
If you're a DC government employee, EAHP is essentially free money. First responders and educators should especially pay attention — the stacked benefits here can add up to tens of thousands of dollars toward a purchase.
Program 4: Property Tax Relief Programs
Best for: All DC homeowners — and especially first-time buyers
DC's property tax relief programs don't get nearly enough attention. Combined, they can save qualified buyers tens of thousands of dollars — both at the closing table and in the years that follow.
The Homestead Deduction
Available to any DC homeowner who occupies their property as a primary residence.
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The Homestead Deduction reduces your property's assessed value by $91,950 for tax year 2026, saving you $781.58 from your annual property tax bill
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Applies every year as long as you live in the home as your primary residence
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Apply through MyTax.DC.gov
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If you file by March 31st, the deduction applies for the entire year and all future years
This is not means-tested — every DC homeowner should apply for this.
The DC Tax Abatement Program (Lower Income Homeownership Exemption)
For qualifying buyers, this is one of the most powerful programs in the city.
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Waives your recordation tax at closing AND exempts you from property taxes for five full years
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For FY2026, the program has a sale price cap of $576,000
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For a home purchased at $475,000, the combined savings at closing and over five years can exceed $27,000
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For properties at $400,000 and above, you're exempt from the 1.45% recordation tax and receive a credit for the seller's 1.45% transfer tax — a 2.9% swing at settlement in your favor
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Your settlement agent files the application at closing — you don't need to do this separately
Who qualifies: Buyers with household income within DC's income limits who are purchasing a primary residence in the District. Income limits are adjusted annually — verify current limits at OTR.
Reduced Recordation Tax for First-Time Buyers
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First-time DC homebuyers who qualify pay a reduced recordation tax at closing
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The maximum sales price for this benefit cannot exceed $777,000
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Must never have owned a principal residence in DC
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Applied at closing by your title company
Senior Citizen and Disabled Property Tax Relief
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Reduces a qualifying property owner's property tax by 50 percent
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For tax year 2026, total household adjusted gross income must be less than $163,500
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Must be 65 or older (or disabled) and occupy the property as principal residence
How Programs Can Stack
One of the most important things to understand about these programs is that many of them can be used together. A DC resident who qualifies for HPAP, DC Open Doors, and the Tax Abatement could potentially walk away with:
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Hundreds of thousands in interest-free loan assistance toward the down payment
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Reduced or eliminated recordation tax at closing
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Zero property tax for the first five years of ownership
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The ongoing Homestead Deduction on top of all of that
Navigating the rules for each program, understanding the complex application processes, and knowing how to potentially stack benefits is where having an expert guide makes all the difference.
Where to Start
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DC Open Doors: Contact an approved lender at dchfa.org
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HPAP: Contact a DHCD-funded Community Based Organization at dhcd.dc.gov
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EAHP: Contact a DHCD-funded CBO at dhcd.dc.gov/eahp
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Property Tax Relief: Apply at MyTax.DC.gov or through your title company at closing
And if you want to talk through which programs might apply to your situation — no obligation, just a real conversation — I'm easy to reach. Coffee's on me.
If you're already working with a buyer's agent, please disregard this as a solicitation.
Maybe you've been watching the DC market for a while, trying to figure out when to make your move. Maybe the process has felt complicated, expensive, or just not built with you in mind. Maybe you just want someone who will shoot straight, knows these neighborhoods from the inside, and won't push you before you're ready.
That's exactly who I'm here to be.
I'm Eric Nielsen, a DC-based REALTOR® with RLAH | @properties and a Bloomingdale resident who genuinely loves this city. I work primarily in Shaw, Logan Circle, Bloomingdale, NoMa, Eckington, Truxton Circle, LeDroit Park, Adams Morgan, and Dupont Circle — and I know these streets the way only someone who lives here can.
Working with me means no pressure, ever. Real neighborhood knowledge — not what Zillow says. And someone who fights for you when it counts.
Find me at ericsellsdc.com · 571.263.5006 · @ericsellsdc
Sources: DC Open Doors — DCHFA · DC Open Doors — Front Door DC · HPAP — DHCD · HPAP — DCHFA · EAHP — DHCD · EAHP — Front Door DC · DC Tax Abatement Program — Downs Mortgage Group · Property Tax Relief — DC OTR · Reduced Recordation Tax — Federal Title · DC First-Time Homebuyer Programs 2026 — The Mortgage Reports · HPAP & EAHP — Alex Jaffe Team
