In this blog, we will cover and discuss the top-rated five-star Washington DC lenders for traditional and non-QM mortgages who have the best mortgage rates. Washington, DC has one of the highest home prices in the nation. Whether you have great credit, bad credit, or are seeking unique non-QM and alternative financing loans with multiple mortgage options, and competitive rates, you will find the information on this guide.
We will explain how to shop for the best Washington DC lenders for traditional and non-QM mortgages. As Gustan Cho Associates continues to grow our team, we are also expanding our list of states we are licensed in.
One of the main reasons why Gustan Cho Associates, empowered by NEXA Mortgage, LLC has a national five-star reputation is because we have the states (licensed in 48 states), we have the best and wide variety of mortgage loan options (lending network with 280 wholesale lending partners), and we have the lowest mortgage rates (We have our compensation on a broker comp platform which limits the max compensation for the whole company at 2.75% where mortgage bankers need to charge over 5% to 9% compensation on the back-end).
Washington DC Housing Market in the News
With a lot of attention on national politics these days, D.C. is on the radar of most Americans. Many of our readers live in the District of Columbia. The Nationwide Multistate Licensing System (NMLS) requires a mortgage company to have a specific license. The housing market in Washington, DC has been booming for many years. Finally, in the fourth quarter of 2024, the housing market in Washington, DC has stabilized and seems like there is a correction.
Median home prices from $575,500 in June of 2023 to $535,000 in November 2023. Housing inventory has increased 17.8% since June 2024.
Homes in Washington, DC sat in the market three times longer from November 2023 until November 2024 than it did the same time period the previous year. Gustan Cho Associates were just granted this license. In this blog, we will detail some facts about the District of Columbia, sample a few mortgage products offered by Gustan Cho Associates, and how to apply for a mortgage with our team.
The Best Washington DC Lenders For High-Balance Conforming Loans
Our team is very excited to offer our mortgage services in our nation’s capital. As we learned in elementary school, Washington D.C. is not a city or a state but is a federal district that has been in existence since 1790. The federal district has a population of nearly 700,000 people. The history of Washington D.C. runs very deep.
FHA and Conforming High-balance mortgage loans are mortgage loans that are higher than the maximum loan limit in low-cost median priced areas. For example, the maximum FHA loan limit for Washington, DC for 2025 is $524,225.
Any FHA loan that is higher than the low-cost median priced area loan limit of $524,225 and up to $1,209,750 is called FHA jumbo loans or high-balance FHA mortgage loans. Same with conventional loans. Any conventional loans in high-cost areas higher than $806,500 up to the ceiling of $1,209,750 is referred to as Jumbo conventional loans or Jumbo conforming loans. Many refer it to high-balance conforming loans.
How Washington D.C. Was Founded
Back in 1774, our nation’s first continental Congress or group of representatives from our colonies needed a place to meet. Our 13 states wanted a capital that would represent them equally which was not too far north or not too far south.
Many people live in surrounding states of Washington, DC. They live in Virginia, and Maryland but work in Washington DC.
So, in 1970 George Washington chose a spot right between the states of Maryland and Virginia. America’s founding fathers were conscious of the fact that people living in this area may unfairly influence Congress and to this day, the District of Columbia residents do not have voting representation in Congress.
Best Washington DC Non-QM Lenders For Bad Credit
The District of Columbia has one of the highest home prices in the nation. Tens of thousands of workers work for the federal government including thousands of politicians and aides who need to purchase second homes in DC. Many homebuyers who cannot qualify for government or conventional loans can be eligible for non-QM loans.
For obvious reasons, residents of D.C. can vote in federal elections. During the war of 1812 against Great Britain, the city was nearly destroyed. There is a ton of history in this area and after Abraham Lincoln gave his famous Emancipation Proclamation in 1863, the population of the D.C. area grew. Many freed slaves came to live in the area.
Washington DC lenders offering non-QM and alternative lending mortgage options offer dozens of different type of non-QM mortgages in Washington, DC. Popular non-QM loan programs for Washington, DC homebuyers include the 12-month bank statement mortgage loans, No-Doc Mortgages, DSCR Mortgage Loans, Asset-Depletion Mortgages, ITIN Mortgage Loans, Expatriate Mortgage Loans, Foreign National Mortgages, Profit and Loss Statement Only Mortgages, and hundreds of other non-QM mortgage loan options.
Size of Washington DC
Washington D.C. may be small in area, only about 68 square miles, but this area has some of the most historic buildings in the country. The United States Capitol building, the White House, Supreme Court building are just a few of these buildings.
Landmarks in Washington DC
There are also numerous monuments and landmarks including the Washington Monument, Lincoln Memorial, and The D.C. war memorial. Many students have a large school trip to visit these historic sites.
We are extremely excited to announce we are now licensed in the territory of the District of Columbia. As many Americans know, the District of Columbia is the capital of our country.
When visiting D.C., you may learn many fun facts including the name Washington D.C. is named after George Washington and Christopher Columbus. D.C. stands for District of Columbia. We are one of the top Washington DC lenders with no overlays on government and conforming loans.
Washington DC Home of the President of the United States
The White House was formally called the president’s palace and Andrew Jackson was the first president to live there. In 1901, Theodore Roosevelt officially changed the name to the White House. There have been many pets who have lived in the White House, but an alligator may be the craziest one.
Washington DC has one of the highest home prices in the nation. Gustan Cho Associates can get you qualified and approved for high-balance FHA and conforming loans in Washington DC.
President Theodore Roosevelt let his kids bring many strange pets into the White House including a small bear, a lizard, a guinea pig, a badger, and even a one-legged rooster. If you have not visited the D.C. area before, it is a great time to learn about our nation’s history and have some great food during your trip.
The Best Washington DC Mortgage Lenders with Lax Lending Guidelines
Gustan Cho Associates are proud to offer our no overlay mortgage programs in the District of Columbia. Many lenders add additional qualifying requirements to their mortgage programs above and beyond the agency guidelines. This is called a lender overlay.
Luckily, our team does not have lender overlays to get in our way. This is why the Gustan Cho Associates are able to help more families than most lenders across the nation.
Over 80% of our borrowers are folks who could not qualify at other mortgage companies either due to the lender having overlays or because the mortgage company did not have the loan option best suited for the mortgage borrower. Our highly skilled team offers conventional, FHA, and VA mortgage loans in the District of Columbia.
Washington DC Lenders With No Lender Overlays
Conventional financing – Conventional mortgage loans require a minimum credit score of 620. These programs are typically capped with a maximum debt to income of 49.99%, ideally lower. We offer programs directly from Fannie Mae and Freddie Mac.
Benefits to a conventional loan include cancelable private mortgage insurance when putting less than 20% down and are used for purchasing second homes and investment properties.
Each agency has its own set of guidelines that can be strict compared to FHA or VA financing. Many real estate agents prefer clients utilizing conventional financing as their appraisal requirements are slightly lax compared to government-backed financing.
HUD-Approved Washington DC Lenders For Bad Credit
FHA mortgage financing – If you are looking for Washington DC lenders who are experts on FHA loans, Gustan Cho Associates may be the lender for you.
The Federal Housing Finance Authority overseen by the U.S. Department of Housing and Urban Development offers aggressive mortgage financing on primary residences.
FHA financing is a great mortgage program that many of our clients take advantage of. An FHA loan is a fantastic low-down-payment mortgage option. With credit scores of 580 or above, you are only required to put down 3.5%.
Washington DC Lenders For Borrowers with 500 Credit Scores
FHA financing is also available for lower credit scores individuals. On FHA loans, you can go all the way down to a 500 credit score with a 10% down payment. Once again, any credit score above 580 will only require a 3.5% down payment. FHA financing also has favorable payment requirements for individuals with student loan debt.
We do not recommend borrowers stretch their budget further than a comfortable monthly payment, but FHA does allow a higher debt-to-income requirement compared to conventional financing.
Not too many Washington DC Lenders can do FHA loans with credit scores down to 500 FICO. One of the top Washington DC Lenders for bad credit and lower credit scores is Gustan Cho Associates. A larger percentage of our borrowers are folks with credit scores down to 500 FICO and need manual underwriting.
The Best Washington DC Lenders For Borrowers With Lower Credit Scores
An FHA mortgage is also a great financial tool that can allow you to build wealth even if you have had a bankruptcy in the past. The waiting period after a chapter 7 bankruptcy is only two years, half the time compared to conventional financing. And if you have a chapter 13 bankruptcy, you can actually purchase or refinance a property while still in the active chapter 13 bankruptcy.
Washington DC Lenders With Low Rates
Conventional mortgage rates require a full two-year waiting period after you are discharged from a chapter 13 mortgage. Since many chapter 13 repayment plans are five years in length, it could be up to seven full years before you qualify for a conventional mortgage loan.
Non-QM loans are an alternative type of mortgage loan program using alternative types of income. Non-QM mortgage loans are not hard money loans. Hard money loans on owner-occupant and second homes is illegal.
If you are already discharged from your chapter 13 bankruptcy, there is no waiting period to apply for an FHA mortgage. For more information on FHA bankruptcy lending, please call Gustan at (800) 900-8569 or email us directly at gcho@gustancho.com.
Washington DC Lenders for High-Balance VA Loans With No Overlays
VA mortgage loans – If you were brave enough to serve our country, you have the ability to utilize one of the best mortgage programs available, a VA mortgage loan. A VA mortgage loan does not require a down payment which is the main hurdle most Americans face when attempting to purchase a home. The best Washington DC lenders for VA loans are mortgage lenders with no overlays on VA loans.
The team at Gustan Cho Associates are experts in helping our veterans with credit scores down to 500 FICO and high debt-to-income ratio get approved for a VA loan in Washington, DC.
With the crazy rate of inflation seen throughout the global economy, saving money is harder now than it has been in the past. Veterans of our country do not need a down payment and are able to qualify for a mortgage program that also does not have private mortgage insurance. Saving you thousands of dollars over the life of the loan.
Washington DC Lenders For VA Loans with Credit Scores Down to 500 FICO
A VA mortgage does not have a minimum qualifying credit score. We specialize in lower credit score VA mortgage lending and also offer manual underwriting. The VA does have a payment history requirement. The basic qualifications for a VA mortgage loan include clean 12-month payment history and all items that report to your credit.
The team at Gustan Cho Associates has a national reputation of being able to approve and close mortgage loans other lenders cannot.
A late payment or derogatory items such as a collection in the past 12 months could hinder your VA qualifications. An underwriter would also verify your ability to make your housing payment. They can view the last 24 months of rent or mortgage payments during the underwriting process.
Expert Washington DC Lenders For VA Loans While in Chapter 13 Bankruptcy
Our highly skilled VA team is here to assist you. We will complete a thorough credit analysis with you to determine your qualifications. Even if you have late payments reporting in the previous 12 months, our team will point you in the right direction to qualify for a VA loan as quickly as possible. Many veterans also have bankruptcies reported on their credit reports.
Tourism is one of the leading industries in the area. The D.C. Amtrak station is the second busiest station in the nation only second to New York City!
There is a two-year waiting period after a chapter 7 bankruptcy, very similar to FHA financing. There is also no waiting period during a chapter 13 bankruptcy just like FHA financing. As long as you are at least 12 payments into your bankruptcy without any mist payments, please reach out to our team today.
Washington DC Lenders Who Are Experts on Non-QM Jumbo Mortgage Loans
NON-QM mortgage products – The District of Columbia area has many self-employed individuals. Self-employed borrowers may face difficulty when qualifying for a mortgage due to how they filed their federal tax returns.
Most self-employed individuals take advantage of write-offs to limit their federal income tax liability. Since the agency guidelines require mortgage companies to verify a borrower’s ability to repay, there are very black-and-white guidelines surrounding self-employed income. These guidelines are put in place to avoid a market crash as we saw in 2008.
Washington DC Lenders For Self-Employed Borrowers
Many NON-QM mortgage products are geared towards self-employed individuals and real estate investors. They are able to utilize rental income for investment properties to qualify for a mortgage. They are also able to utilize your self-employed income shown on your bank statements versus your tax returns.
We also offer a full slate of NON-QM mortgage programs. Below are some basic qualifications for the programs we offer.
The business-related deposits into your bank statements are used to calculate your qualifying income. In fact, tax returns are not required to qualify for these mortgage loans. The down payment requirements vary based on credit score and we recommend you reach out to Gustan at (800) 900-8569 to discuss your NON-QM options in the D.C. area. Our team has access to numerous NON-QM outlets, giving us a competitive edge.
Washington DC Lenders For Traditional and Non-QM Mortgages
Discover the best Washington, DC lenders for traditional and Non-QM mortgages. Learn about loan options, guidelines, and how Gustan Cho Associates can help you qualify.
Why Borrowers in Washington DC Need Flexible Mortgage Options
Buying or refinancing a home in Washington, DC, can feel overwhelming, especially given the city’s competitive real estate market and high property values. Traditional mortgage programs such as Conventional, FHA, VA, and USDA loans serve many borrowers.
At Gustan Cho Associates, we specialize in helping borrowers across Washington, DC, qualify for both traditional mortgage programs and alternative non—QM mortgage options without lender overlays.
Not everyone fits neatly into those guidelines. That’s where non-QM (non-qualified mortgage) loans come in. Whether you are a first-time homebuyer, a self-employed professional, or someone with credit challenges, we provide mortgage solutions tailored to your situation.
What Are Traditional Mortgage Loans?
Traditional loans are standard mortgage programs backed by government agencies or conventional investors such as Fannie Mae and Freddie Mac. They include:
Conventional Mortgages in Washington DC
- Backed by Fannie Mae and Freddie Mac
- The minimum credit score is usually 620
- Competitive rates with strong credit and income
- Available for primary, second homes, and investment properties
FHA Loans in Washington DC
- Low down payment of 3.5%
- Flexible credit score requirements (as low as 500 with 10% down)
- Ideal for first-time homebuyers or borrowers with credit challenges
VA Loans in Washington DC
- For eligible veterans and active-duty service members
- 100% financing with no down payment
- No mortgage insurance required
USDA Loans in Washington DC
- Designed for rural and suburban areas outside the main city
- Zero down payment available
- Income limits apply
What Are Non-QM Mortgages?
Non-QM (Non-Qualified Mortgages) are loans that do not follow standard agency guidelines but are still safe, fully documented, and designed to help borrowers with unique situations.
Popular Types of Non-QM Loans in Washington DC
- Bank Statement Loans – Perfect for self-employed borrowers who want to qualify using personal or business bank deposits instead of tax returns.
- DSCR Loans (Debt Service Coverage Ratio) – This is for real estate investors who qualify based on rental income rather than personal income.
- No-Doc/Alt-Doc Loans – Limited documentation programs for entrepreneurs and freelancers.
- Asset-Depletion Loans – Qualify based on liquid assets instead of income.
- ITIN Loans – For borrowers without a Social Security Number but with an Individual Taxpayer Identification Number.
Why Work With Gustan Cho Associates in Washington DC?
No Overlays: More Approvals
Most lenders add strict guidelines, also known as overlays, that make qualifying harder. At Gustan Cho Associates, we follow agency guidelines only for FHA, VA, USDA, and Conventional loans.
Wide Range of Non-QM Programs
We offer one of the largest selections of Non-QM mortgage programs in Washington, DC, allowing borrowers with complex financial situations to secure financing.
Fast Closings and Nationwide Licensing
- Licensed in 48 states, including Washington, DC.
- In-house team experienced with traditional and Non-QM underwriting
- Known for closing loans that other lenders cannot
Key Benefits of Non-QM Loans in Washington DC
- Flexible income verification
- Credit score flexibility (sometimes down to 500)
- Programs available for recent bankruptcy, foreclosure, or late payments
- Options for jumbo loans above conventional limits
- Great solution for high-cost housing markets like Washington, DC.
How to Choose the Best Washington DC Mortgage Lender
Compare Traditional vs. Non-QM Options
Understand whether you fit into agency guidelines or need alternative financing.
Focus on Experience
Choose a lender with proven success in closing loans with unique borrower profiles.
Look at Speed and Service
Quick pre-approvals and smooth closings are essential in a fast-moving market like Washington, DC.
FAQs About Washington DC Lenders for Traditional and Non-QM Mortgages
What Credit Score Do I Need For a Traditional Loan in Washington, DC?
Most conventional lenders require at least a 620 score, while FHA loans may allow scores as low as 500 with a larger down payment.
Can I Get Approved if I’m Self-Employed With No W-2 Income?
Yes. Non-QM bank statement loans allow you to qualify using bank deposits instead of tax returns.
Are Non-QM Mortgages Riskier Than Traditional Loans?
Not necessarily. They use alternative documentation. Payments, interest rates, and terms are designed to fit your financial profile.
Can Investors Buy Washington DC Rental Properties With a Non-QM loan?
Yes. DSCR loans are ideal for real estate investors since they qualify based on property income.
Do Non-QM Loans Require Higher Down Payments?
Depending on your credit and loan type, some programs may require 10–20% down.
Are Non-QM Loans Only For People With Bad Credit?
No. Many creditworthy borrowers use Non-QM loans because they don’t fit agency documentation rules.
Can I Refinance My Existing Washington, DC Home With a Non-QM Mortgage?
Yes. Both rate-and-term and cash-out refinance options are available.
How Fast Can I Close a Non-QM Mortgage in DC?
Many programs close within 30 days, depending on documentation and appraisal.
Do Washington DC, Non-QM Lenders Report to Credit Bureaus?
Yes, most Non-QM lenders report your mortgage payments to credit bureaus.
Why Should I Choose Gustan Cho Associates Over a Local Bank?
We offer traditional and Non-QM loans with no overlays, faster approvals, and more flexible solutions than most banks.
Final Thoughts
Suppose you’re searching for Washington, DC, lenders for traditional and Non-QM mortgages. In that case, Gustan Cho Associates is your one-stop mortgage broker. With no overlays, flexible Non-QM programs, and experience helping borrowers that other lenders turn away, we can find the right loan for your unique needs.
👉 Call Gustan Cho Associates today at 800-900-8569 or visit gustancho.com to start your mortgage journey.
Get Pre-Approved With Washington DC Lenders with Lax Requirements and Low Rates
Our team is excited to grow and is here to assist you with your mortgage needs. We will continue to update our readers as we expand into more states during the calendar year of 2023. Even if you have been turned down for a mortgage in the past, we recommend you reach out to our team as you may be running into a lender overlay.
Discover the best Washington DC lenders for traditional and Non-QM mortgages. Learn about loan options, guidelines, and how Gustan Cho Associates can help you qualify.
We strive on making our team available to fit your schedule and are available on nights and weekends. The application process is simple and completed online to streamline the process. Feel free to give us a phone call today with any mortgage-related questions.
