Income Needed to Buy in Washington
Common Question: 'How much income do I need to buy a house in Washington?' Based on the median home price of $640,000, lenders typically look for an annual household income of roughly $44,800. This ensures your payment stays below 28% of your gross pay.
Closing Costs in District of Columbia
Don't forget cash to close. In District of Columbia, buyer closing costs typically range from 2% to 5%. For a home in Washington, you should budget between $12,800 and $32,000 on top of your down payment.
Rent vs Buy in Washington
Is it better to rent or buy in Washington? With a calculated monthly payment of ~$4,480, buying is currently more expensive monthly than the average rent. However, buying locks in your housing cost against future District of Columbia inflation.
Hidden Costs: Property Taxes
Generic calculators often get Washington wrong because they underestimate taxes. Our Washington Mortgage Calculator uses the specific District of Columbia property tax rate of 0.85%, which adds roughly $453/mo to your real payment.
First-Time Buyer Tips (FHA & PMI)
First-time buyers in Washington often utilize FHA loans. Note that putting less than 20% down will trigger Private Mortgage Insurance (PMI), which can add 0.5-1% annually to your loan balance until you reach 20% equity.