Washington D.C. Mortgage Guide

$577,041 median — 37% above the national average — and that's before you factor in DC's transfer and recordation taxes, which together can run you another 2.9% at closing on anything over $400K. On a $600K home, that's roughly $17,000 in taxes just to close. Most buyers don't see that coming.

Right now it's a balanced market, so you're not getting crushed by bidding wars, but don't expect sellers to be desperate either.

Location swings hard here. Capitol Hill and Georgetown are $900K+ territory. But cross into Southeast DC — neighborhoods like Congress Heights — and prices drop significantly, sometimes under $400K. The catch is that some of those areas are still mid-transition, so you're betting on timing.

If you want the suburbs, Silver Spring, Maryland sits right on the Metro and runs noticeably cheaper than DC proper, often in the $450–550K range. But Bethesda? Shockingly expensive for what feels like a quiet suburb — median prices push well past DC's.

The thing most people underestimate is condo fees. DC has a lot of condos in the $400–600K range that look affordable until you add $500–900/month in HOA fees. Run the real monthly number before you fall in love with anything.

DC is one of the rare places where the assistance programs are genuinely generous — and also where the process can grind you down if you're not prepared for how long it takes.

The Home Purchase Assistance Program (HPAP), run by the DC Department of Housing and Community Development (DHCD), is the one to know first. For very low-income buyers, it can provide up to $202,500 in down payment and closing cost help — structured as a deferred loan, meaning no payments while you live there as your primary residence. That's not a misprint. But income limits apply based on household size, and there's a waitlist. Sometimes a long one. People apply assuming they'll close in a few months and then realize HPAP moves on its own timeline.

DC Open Doors, administered through the DC Housing Finance Agency (DCHFA), is more accessible if your income is moderate rather than very low. You get up to 3.5% of the loan amount as a deferred second mortgage at 0% interest — no monthly payment on it, and it doesn't come due until you sell or refinance. Paired with a DCHFA first mortgage at below-market rates, the combo can make a real dent in what you need at closing.

The catch with both: you're buying in DC, where even neighborhoods east of the Anacostia River — like Congress Heights or Deanwood — are pushing $400K+ for a modest row house. The assistance helps, but it doesn't solve the affordability gap entirely.

Start at dchfa.org for DC Open Doors and dhcd.dc.gov for HPAP. Program terms, income limits, and funding availability change — verify current details directly before you plan around any specific numbers.

The transfer taxes in D.C. will genuinely catch you off guard if you're coming from Virginia or Maryland. D.C. charges both a recordation tax and a transfer tax — and combined, you're looking at roughly 2.2% to 2.9% of the purchase price. On a $700,000 condo in Capitol Hill or a rowhouse in Petworth, that's $15,000-$20,000 in taxes alone, just to close. Buyers and sellers typically split it, but that's negotiable, and in a slower market sellers sometimes eat more of it. Either way, it hits your closing costs hard.

The one break: if you're a first-time buyer purchasing a primary residence under $400,000, D.C. waives the recordation tax entirely under the D.C. First-Time Homebuyer Recordation Tax Reduction. That's a real chunk of money back — worth confirming with your lender early because your loan estimate needs to reflect this correctly.

And D.C. has one of the stronger tenant-rights frameworks in the country — the Tenant Opportunity to Purchase Act (TOPA). If you're buying a property where someone is renting, even a single-family home in some cases, the tenant may have the legal right to match your offer. It can delay or kill deals. Ask your agent specifically whether TOPA applies before you get attached to any property with an existing tenant.

The closing cost hit in DC is brutal if you're not ready for it. Unlike most states where the transfer tax is minimal, DC charges a 1.45% transfer tax on properties over $400K — and then stacks a 1.45% recordation tax on top of that. So on a $700K rowhouse in Capitol Hill or a condo in Navy Yard, you're looking at roughly $20,000 in transfer and recordation taxes alone, before title fees, lender fees, or anything else. Most out-of-state buyers see "1.1%" in the initial research and anchor on that number, then get blindsided at the closing table when their property clears that $400K threshold.

The gotcha that really gets people: DC's Homestead Deduction doesn't apply automatically. You have to file for it — and if you miss it, you're paying full property taxes until you do. The deduction cuts your assessed value by $84,000, which isn't nothing. File with the DC Office of Tax and Revenue as soon as you close. Don't wait until tax season thinking someone did it for you. Nobody did.

And if you're buying a condo anywhere along the Metro corridor — Columbia Heights, Shaw, NoMa — get three years of HOA financials before you make an offer. DC condo associations carry special assessments like a tradition.