Down Payment Help and Loan Types in DC, Maryland, and Virginia

Most buyers use one of four kinds of mortgage. The biggest differences are how much you must put down, who can qualify, and what kind of mortgage insurance you pay.

If you are not a U.S. citizen or green card holder, ask each lender which loans you can get. Rules for conventional loans are different from FHA rules, and some local lenders offer their own loans for ITIN borrowers. A housing counselor can help you find them. Since June 2026, federal regulators have asked banks to look more closely at customers who use an ITIN. Some may ask for more documents or say no, so ask before you apply.

Home Purchase Assistance Program (HPAP)

The DC Department of Housing and Community Development (DHCD) runs HPAP, and the DC Housing Finance Agency (DCHFA) helps manage it. HPAP gives interest-free loans to help low- and moderate-income first-time buyers buy a home in DC.

• Who: first-time buyers. For HPAP, that means you have not owned any home or other residential property in the last three years. DC residents come first. Some people who have worked in DC for at least a year can also apply.
• Where: the home must be in DC, and it must be your main home.
• How much: it depends on your income and household size. DHCD updates its table every year.
• Repayment: lower-income buyers make no monthly payments. Moderate-income buyers start making payments in the sixth year. The whole loan is due if you sell, refinance (with some exceptions), or stop living in the home.
• How to apply: through a community organization, such as Housing Counseling Services, the Latino Economic Development Center (LEDC), or MANNA.

HPAP money is limited. For fiscal year 2026, DHCD said it would help applicants first-come, first-served. Funding and rules can change each fiscal year. DC's fiscal year starts on October 1, so ask a counselor early about timing.

DC Open Doors

DC Open Doors, from DCHFA, offers home loans with down payment help for homes in DC. As of September 2026, its website said:

• First-time and repeat buyers can use it, and you do not need to live in DC now.
• There is an income limit, and the minimum credit score is 640.
• A down payment assistance loan can cover your full minimum down payment.
• That loan has 0% interest and no monthly payments. It is due after 30 years, or sooner if you sell, refinance, or stop living in the home.

Maryland Mortgage Program (MMP)

• 1st Time Advantage loans are for first-time buyers. This includes people who have not owned a main home in the last three years. Some veterans and some buyers in certain targeted areas can also qualify.
• Flex loans are for first-time or repeat buyers.
• Most MMP loans come with down payment help as a 0% deferred loan. In 2026, options included a flat $6,000, or an amount equal to 3%, 4%, or 5% of the first mortgage. You repay it when the first mortgage ends, for example when you sell or refinance.
• If an approved partner, such as some employers, gives you help, MMP may match it with up to $2,500 more on some loans.
• Every borrower must take an approved homebuyer education class.
• There are special loans for buyers in Montgomery County and Prince George's County.
• You apply through an MMP-approved lender.

Virginia Housing

• Virginia Housing makes home loans through approved lenders, with income and price limits.
• Its Down Payment Assistance Grant is a true grant, so you never repay it. It is for first-time buyers, and for repeat buyers in certain areas, who use an eligible Virginia Housing loan.
• A Closing Cost Assistance Grant can help buyers who get a VA or USDA loan through Virginia Housing. It is also never repaid.
• Many Virginia Housing loans require its free homebuyer class. You can take it in person or online. The online course takes about eight hours.

Some counties and cities in the region also run their own programs. A HUD-approved housing counselor can tell you which ones fit you.

Every program has its own rules. Ask these questions before you make an offer on a home:

• What is the income limit for my household size?
• Is there a limit on the home price?
• How does the program define a first-time buyer?
• Must I live in the home as my main home? For how long?
• Is a homebuyer class required? Which classes count?
• What minimum credit score and maximum DTI do I need?
• How much of my own money must I put in?
• Is it a grant or a loan? If it is a loan, when must I repay it: when I sell, refinance, move out, or after a set number of years?
• Can I combine it with other programs?
• Does it accept buyers with my immigration status or an ITIN?
• Is money available now, and how long does approval take?
• Which lenders are approved to use this program?

Get the answers in writing. Program rules and dollar amounts change, often at the start of a new fiscal year.

When you put down a small amount, the lender takes more risk. Mortgage insurance protects the lender if you stop paying. It does not protect you, but it is what makes a low down payment possible.

PMI on conventional loans

With less than 20% down on a conventional loan, you usually pay private mortgage insurance (PMI) as part of your monthly payment. Federal law gives you two main ways to end it:

• You can ask your servicer in writing to cancel PMI when your loan balance is scheduled to reach 80% of the home's original value. You need a good payment history and must meet other conditions, such as showing the home has not lost value.
• Your servicer must end PMI automatically when your balance is scheduled to reach 78% of the original value, if you are current on your payments.

FHA mortgage insurance

FHA loans charge two premiums. As of September 2026, the upfront premium is 1.75% of the loan amount, and it can be added to the loan. There is also a yearly premium, paid as part of your monthly payment. For most buyers who put down 3.5%, the yearly premium is 0.55% of the loan, and it lasts for the life of the loan. If you put down 10% or more, it ends after 11 years. Some owners later refinance into a conventional loan to stop paying it.

$350,000 home − $12,250 down = $337,750 loan; $337,750 × 0.55% ÷ 12 = about $155 a month at the start