A Washington, D.C., housing agency is offering to help veterans and active-duty military service members buy homes, sweetening the terms that the U.S. Department of Veterans Affairs normally offers on its loans.
The District of Columbia Housing Finance Agency said it would give eligible homebuyers assistance equal to 3% of their loan amounts to help pay closing costs such as title and homeowners insurance or prepaid property taxes. That’s in addition to traditional VA loan benefits, including not requiring a down payment or monthly mortgage insurance.
“Our very first VA loan offers 100% financing to increase homeownership, reduce foreclosures, and better the quality of life for those who’ve served,” agency executive director Christopher Donald said in a statement.
Across the U.S., the VA issued 416,000 home loans in 2024, according to its website, of which 298,000 were to purchase property and the rest to refinance. The largest number of loans went to active or retired personnel in states with a high number of military facilities, such as North Carolina and Virginia. In the nation’s capital, the federal agency provided 281 purchase loans last year, with an average loan of about $690,000.
As with VA loans generally, buyers can use the Washington, D.C., product toward the purchase of a single-family home, a condo or a small multifamily building in the city with up to four units, as long as the owner lives there.
Not everyone who applies for a VA loan can buy with zero down payment, however. In some cases, the private lenders who issue the loans may still require some money down, according to the VA’s website.
In addition to veterans and active-duty military personnel, certain National Guard members and reservists, and surviving spouses of military members are eligible for the program. Borrowers’ credit scores must be at least 640, and their debt-to-income ratio can’t exceed 45%.