Types of Mortgages Available in Washington DC

We offer a comprehensive selection of home loans in Washington, DC, to ensure that every home buyer can find the perfect financing solution to achieve their dreams in the nation’s capital. Types of mortgages we offer include: 

  • VA loans: VA loans are guaranteed by the US Department of Veterans Affairs (VA) and are designed to help eligible veterans, active duty service members, and surviving spouses buy homes with favorable terms, including zero down payment requirements and appealing interest rates. 
  • Bank statement loans: Ideal for self-employed borrowers, bank statement loans evaluate income based on bank statements rather than traditional tax returns or pay stubs, making it easier for entrepreneurs to qualify for a mortgage. 
  • DSCR loans: Debt service coverage ratio (DSCR) loans are available for real estate investors, whether you’re a first-time investor or a seasoned one. With a DSCR loan, DC mortgage lenders evaluate a property’s income-generating potential rather than the borrower’s personal income. 
  • Conventional loans: These traditional loans are not insured by any government agency and come with relatively strict credit and income requirements. However, these loans often have more flexible terms and competitive interest rates. 
  • Asset-based loans: Asset-based loans use financial assets like savings and investments and convert them into cash to determine a borrower’s ability to repay their DC mortgage loan. These loans are best suited for those with significant assets but may not meet traditional income requirements. 
  • ITIN loans: ITIN loans are designed for individuals without a Social Security number, allowing non-US citizens to purchase a home using their individual taxpayer identification number (ITIN) for identification purposes. 
  • Home equity loans: A home equity loan allows you to tap into the equity you’ve accrued and get funds to pay for expenses like home renovations, medical bills, college tuition, and more. 
  • FHA loansFHA loans provide first-time home buyers and those with below average credit profiles to qualify for a low down payment mortgage at a competitive rate.  

Mortgage Rates in Washington, DC

Mortgage rates in DC can vary based on several factors, all of which influence the total cost of borrowing. These factors include: 

  • Mortgage type: Different types of mortgage loans, such as fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, VA loans, non-QM mortgages, and jumbo loans, may have varying interest rates. 
  • Borrower’s credit score: Individuals with higher credit scores typically qualify for lower interest rates because they’re considered less risky to lenders.
  • Loan term: Generally, shorter loan terms have lower interest rates. However, you’ll have higher monthly payments because you have less time to repay your DC mortgage loan. 
  • Down payment: A higher down payment may lead to a lower mortgage rate, as it reduces the lender’s risk. The more you put down, the lower your loan amount, reducing your monthly payments. 
  • Economic factors: Inflation rates, employment levels, and monetary policy decisions can impact DC mortgage rates. 

Qualifying for a Mortgage in Washington, DC

When applying for a mortgage in Washington, DC, your lender will consider several key factors to determine your loan eligibility and terms. 

  • Credit score: A higher credit score indicates a lower risk for lenders, which can lead to better loan terms. Griffin Funding requires a credit score of 620 for most home loans and a score of 580 or higher for VA loans. 
  • DTI ratio: A lower debt-to-income (DTI) ratio demonstrates a borrower has sufficient income to repay their mortgage loan. Most DC mortgage lenders require borrowers to have a DTI of less than 43%. 
  • Income: DC mortgage lenders evaluate borrowers’ income to ensure they earn enough to repay the mortgage. Borrowers with higher incomes may qualify for larger loan amounts. 
  • Down payment amount: A higher down payment reduces the loan-to-value (LTV) ratio, which can result in more favorable loan terms, including lower interest rates and reduced mortgage insurance costs. Some loan programs require specific minimum down payment amounts.  
  • Home appreciation: If you’re refinancing your mortgage or tapping into your existing home’s equity, lenders will consider your home’s appreciation value as part of the qualifying criteria. A higher appreciation value can increase the amount of equity available for borrowing. 

Washington DC Home Buyer Programs

Home buyer programs in Washington, DC, provide assistance to those looking to purchase a home, increasing opportunities and promoting housing affordability. Some home-buying programs available in DC are: 

  • DC Open Doors Program: This program offers down payment assistance loans and reduced interest rates to help first-time home buyers and repeat buyers purchase a home.
  • Home Purchase Assistance Program (HPAP): HPAP provides interest-free loans and closing cost assistance to low and moderate-income borrowers and families purchasing homes in DC. Eligible borrowers can receive up to $80,000 in down payment assistance. 
  • DC4ME: This program assists eligible home buyers who are full-time DC government employees. DC4ME offers competitive terms to help individuals purchase homes, and qualified participants may benefit from a reduced interest rate and down payment assistance. 
  • DC Housing Finance Agency (DCHFA) programs: DCHFA offers various homeownership programs, including mortgage credit certificates, down payment assistance, and special financing options for teachers and first responders. 

Work With an Experienced Washington DC Mortgage Lender

Having the right mortgage partner simplifies applying for and securing a home loan in DC. At Griffin Funding, we understand how challenging it can be to secure a mortgage in the nation’s capital, and we’re committed to helping you find the perfect home loan for your unique situation. 

Whether you’re a first-time home buyer or an investor, our experienced team can lead you through the process to help you choose from our comprehensive selection of mortgage options. 

Partnering with Griffin Funding as your DC mortgage lender means accessing a dedicated team committed to your success. Plus, with the Griffin Gold app, you can manage your mortgage on the go. Track your loan, manage your credit score, and communicate directly with us — all from your mobile device. 

Apply for a home loan in DC today with Griffin Funding.