Non-QM Loans in Washington DC
Washington DC's high-cost real estate market and concentration of government contractors, consultants, and professionals creates strong demand for Non-QM loans. The district's unique property types and income profiles require flexible financing solutions.
$650,000
Median Home Price
$580,000
Avg. Loan Amount
38+
Licensed Lenders
12+
Major Markets
Washington DC Real Estate Market
Why Non-QM loans are popular in Washington DC
High-cost market requires jumbo Non-QM loan options
Large population of government contractors with variable income
Strong rental market driven by transient workforce
Significant foreign national buyer activity
Historic properties may require non-warrantable condo financing
Multi-family investment opportunities in emerging neighborhoods
Non-QM vs Conventional in Washington DC
See how Non-QM mortgage options compare to conventional loans for Washington DC borrowers
| Feature | Non-QM Loans | Conventional |
|---|---|---|
| Interest Rates | 6.75% - 8.75% | 6.25% - 7.25% |
| Min. Credit Score | 580-620 | 620-680 |
| Max DTI Ratio | Up to 50-55% | Up to 43-45% |
| Down Payment | 10-25% | 3-20% |
| Income Documentation | Bank Statements, 1099, P&L, Assets | W-2, Tax Returns, Pay Stubs |
| Max Loan Amount | Up to $3M | $1,149,825 |
| Closing Time | 21-30 days | 30-45 days |
| PMI Required | No (typically 10%+ down) | Yes (if < 20% down) |
* Rates and terms are approximate and vary by lender, credit profile, and property type. Data reflects typical Washington DC market conditions as of 2026.
Top Washington DC Markets We Serve
Non-QM lending available throughout Washington DC
Washington DC Lending Regulations
Washington DC is regulated by the Department of Insurance, Securities and Banking (DISB). Mortgage lenders and brokers must be licensed under DC Official Code. DC has specific consumer protection laws and disclosure requirements unique to the district.
Washington DC Non-QM Loan FAQs
Common questions about Non-QM loans in Washington DC
Can government contractors get Non-QM loans in DC?
Yes! Bank statement loans are popular with DC's government contractors who may have variable income or work through their own companies. 1099 income loans are also available for independent consultants.
What loan amounts are available for DC properties?
Non-QM loans in DC can exceed $2-3 million for luxury properties. Given DC's high median prices, jumbo Non-QM options are commonly used even for modest properties in desirable neighborhoods.
Are Non-QM loans available for DC condos?
Yes, including non-warrantable condos that don't meet conventional guidelines. This is common in DC where many buildings have high investor concentration or unique ownership structures.
Can foreign embassy staff get mortgages in DC?
Yes! Foreign national loans are available for embassy staff and international organization employees. These programs don't require US credit history and can work with diplomatic visa holders.
How do DC's property taxes affect my loan qualification?
DC's property taxes are factored into your debt-to-income ratio. While DC rates are moderate compared to nearby Maryland and Virginia, the high property values mean significant tax amounts that lenders will consider.
What are current Non-QM mortgage rates in Washington D C?
Non-QM mortgage rates in Washington D C typically run 0.5-1.5% higher than conventional rates. As of 2026, expect rates between 6.5% and 9.5% depending on the program, credit score, and down payment. Bank statement loans and DSCR loans in Capitol Hill and Georgetown tend to have competitive pricing due to higher lender competition.
What income documentation alternatives are accepted for Non-QM loans in Washington D C?
Non-QM lenders in Washington D C accept several alternative income documentation methods: 12 or 24 months of bank statements (personal or business), 1099 forms, profit and loss statements prepared by a CPA, asset depletion calculations, and rental income from DSCR analysis. This flexibility makes homeownership accessible for self-employed borrowers, freelancers, and investors throughout Washington D C.
What property types qualify for Non-QM financing in Washington D C?
Non-QM loans in Washington D C cover a wide range of property types including single-family homes, condos (including non-warrantable), townhomes, 2-4 unit properties, and some commercial mixed-use properties. Investment properties, vacation homes, and primary residences all qualify. In markets like Capitol Hill and Georgetown, multi-unit properties are especially popular for DSCR loans.
What is the minimum down payment for a Non-QM loan in Washington D C?
Most Non-QM programs in Washington D C require a minimum down payment of 10-20%, though some lenders offer options as low as 10% for primary residences with strong compensating factors. DSCR loans for investment properties typically require 20-25% down. With the median home price in Washington D C around $640,000, this means a down payment starting at approximately $96,000 to $128,000.
Can I refinance into a Non-QM loan in Washington D C?
Yes, Non-QM refinancing is available in Washington D C for both rate-and-term and cash-out refinancing. Cash-out refinances allow up to 75-80% LTV in most cases. This is particularly popular among Washington D C homeowners who want to tap equity without providing traditional income documentation, or investors looking to pull equity from rental properties in Capitol Hill or Georgetown to fund additional purchases.
How do DSCR loans work for Washington D C investment properties?
DSCR (Debt Service Coverage Ratio) loans in Washington D C qualify borrowers based on the rental income of the property rather than personal income. The property's monthly rental income must typically cover 1.0x to 1.25x the monthly mortgage payment (PITI). No employment verification, tax returns, or W-2s are required. This makes DSCR loans ideal for scaling a rental portfolio in Washington D C's growing markets.
What happens if I have a recent bankruptcy or foreclosure in Washington D C?
Non-QM lenders in Washington D C offer programs for borrowers with recent credit events. Many programs allow financing just 1-2 years after a bankruptcy discharge (compared to 4-7 years for conventional loans) and 2-3 years after a foreclosure. Expect to provide a larger down payment (typically 20-25%) and accept a slightly higher interest rate, but homeownership is still achievable.
Are Non-QM loans available for foreign nationals buying property in Washington D C?
Yes, several Non-QM lenders in Washington D C offer foreign national loan programs. These loans do not require a U.S. Social Security number, credit history, or visa. Foreign nationals can purchase investment properties or vacation homes in Washington D C with as little as 25-30% down. Popular areas for foreign national buyers include Capitol Hill and Georgetown.
What is the maximum loan amount for Non-QM loans in Washington D C?
Non-QM loan amounts in Washington D C typically range from $100,000 to $3 million, with some lenders offering up to $5 million for jumbo Non-QM programs. There are no conforming loan limits to worry about since Non-QM loans are not sold to Fannie Mae or Freddie Mac. High-value properties in Capitol Hill and Georgetown can be financed with these higher limits.
How does a bank statement loan work for self-employed borrowers in Washington D C?
Bank statement loans in Washington D C allow self-employed borrowers to qualify using 12 or 24 months of personal or business bank statements instead of tax returns. The lender calculates your income by averaging deposits over the statement period, typically using 50-100% of deposits for business accounts and 100% for personal accounts. This is ideal for Washington D C business owners who maximize tax deductions.
What are the DTI requirements for Non-QM loans in Washington D C?
Non-QM loans in Washington D C generally allow higher debt-to-income (DTI) ratios than conventional loans. Most programs accept DTI ratios up to 50%, and some lenders go as high as 55% with compensating factors such as a larger down payment, significant reserves, or a higher credit score. DSCR loans do not use personal DTI at all, focusing instead on the property's cash flow.
Do I need reserves to qualify for a Non-QM loan in Washington D C?
Most Non-QM lenders in Washington D C require 3-12 months of mortgage payment reserves in liquid assets after closing. The exact requirement depends on the loan program, property type, and credit profile. Investment property loans and jumbo Non-QM loans typically require more reserves (6-12 months), while primary residence loans may require as few as 3-6 months.
How does Non-QM lending compare to conventional mortgages in Washington D C?
Non-QM loans in Washington D C differ from conventional mortgages in several key ways: they accept alternative income documentation (bank statements, 1099s, asset depletion), allow lower credit scores (as low as 580 vs. 620+ for conventional), permit higher DTI ratios (up to 50-55%), and have no conforming loan limits. The trade-off is slightly higher interest rates (0.5-1.5% above conventional) and larger down payment requirements (typically 10-25% vs. 3-5% for conventional).
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