A Capitol Hill rowhouse with a legal basement apartment. A Georgetown federal-style home. A Kalorama house leased to an embassy family. In the District, these routinely cross $1 million, and the rules for buying and renting them are unlike anywhere else.
In short: Yes. LendingStreet finances $1M+ rentals in the District of Columbia with DSCR loans that qualify on the property's rent, with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, and larger balances are reviewed and priced case by case. Rowhouses with a legal, separately rented basement unit are often the most financeable large-balance rentals in DC because two rents support one price. The District's tenant purchase rights, rental licensing, rent stabilization and short-term rental limits all affect what you can buy and what rent counts, so involve a DC attorney early.
Most $1M+ rentals in the District are rowhouses or detached homes. On Capitol Hill, Logan Circle, Dupont Circle, Shaw, Bloomingdale and Columbia Heights, many rowhouses have an English basement that can be a separate unit. Georgetown has historic federal and Victorian homes. Kalorama, Woodley Park and Cleveland Park have larger homes near embassies and the National Cathedral. In upper Northwest, Spring Valley, Wesley Heights and Chevy Chase DC have detached single-family homes on bigger lots.
Tenants include diplomats and embassy staff, senior federal officials, lobbyists and attorneys, journalists, and executives on assignment. Many lease for one to three years, and some have housing allowances that support higher rents.
| Property type | Typical neighborhoods | What helps or hurts the ratio |
|---|---|---|
| Rowhouse with legal basement unit | Capitol Hill, Shaw, Bloomingdale, Columbia Heights | Two rents help; the basement unit must be legal and licensed |
| Historic single-family | Georgetown, Dupont Circle, Logan Circle | One rent; historic review limits changes |
| Detached executive home | Spring Valley, Wesley Heights, Chevy Chase DC, Kalorama | One rent at a high price; often needs more equity |
| Luxury condo | West End, Navy Yard, the Wharf | Condo fees and project review |
A DSCR loan divides rent by the full payment: principal, interest, taxes, insurance and any condo fees. On a $1.5 million rowhouse, a single rent often falls short of the payment on a large loan. A separate basement apartment adds a second rent and can turn a tight deal into a standard approval.
For the second rent to count, the unit generally needs to be legal. In DC, that usually means the property's certificate of occupancy reflects two units and the owner holds the required rental license for each. Ceiling height, egress and fire separation rules apply to basement units. An unpermitted basement apartment is often treated as part of the main house.
Before you buy, ask the seller for the certificate of occupancy and the rental license history. If the basement needs work to become legal, plan that before you count its rent.
This example is illustrative and not a quote. An investor buys a rowhouse on Capitol Hill for $1,500,000. The main house rents for $6,200 a month and the legal basement unit for $2,600, so combined rent is $8,800. Property taxes and insurance total about $1,000 a month.
At 70% LTV, the loan is $1,050,000 and the down payment is $450,000. At a sample rate of 7.125% on a 30-year fixed, principal and interest is about $7,074, and the total payment is about $8,074. DSCR is $8,800 divided by $8,074, or about 1.09x. Without the basement rent, the main house alone would cover only about 0.77x of the payment.
If the ratio on your property comes in below 1.0, some programs accept it, usually at lower leverage. Others offer no-ratio options. A legal second unit is still the simplest fix.
Detached homes in Spring Valley, Wesley Heights, Kalorama and Chevy Chase DC often rent to diplomats, embassy families and senior executives. Leases can run several years, sometimes signed by an embassy or employer rather than the individual, and tenants often expect high-end finishes, parking and security features.
These are one-rent properties at high prices, so the down payment carries the ratio. A signed lease at market rent helps the appraiser support the figure, but the loan still qualifies on the rent, not the tenant's employer. Comparable rentals at the top of the market can be limited, which is one reason some programs ask for a more detailed review on large balances.
If a lease includes early termination clauses tied to diplomatic reassignment, share it with the financing team. Those terms are common and rarely a problem, but underwriting will want to see them.
The District's Tenant Opportunity to Purchase Act gives many tenants the right to be offered the chance to buy, or to assign that right, when an owner sells. The process has notice periods and deadlines, and it can add weeks or months to a purchase. Single-family homes have more limited TOPA rights than multi-unit buildings, but the rules have exceptions.
If you are buying a property with tenants, or a rowhouse with a rented basement, ask the seller's attorney how TOPA has been handled and get the required documentation. Your title company will want to see it. Plan your financing timeline around it, since rate locks and contract deadlines need to match.
DC requires a basic business license for rental housing, and rental units are subject to inspection. Each unit you plan to rent should have its license before a tenant moves in. The appraiser and the lender may ask for it.
DC's rent stabilization law covers many older rental units, with exemptions that depend on factors such as when the building was built and how many units the owner holds. Whether a given rowhouse or basement unit is covered is a legal question. If a unit is stabilized, its legal rent is what counts toward the ratio. Confirm status with a DC attorney before you buy.
DC limits short-term rentals to the host's primary residence, with licensing requirements. That rules out most investor-owned nightly rentals. For a non-owner-occupied investment property, plan on long-term leases.
Furnished rentals of 30 days or more serve diplomats, officials and contractors between assignments. Some programs can consider mid-term rental income, though how it is counted varies. Many investors qualify on long-term market rent and treat furnished stays as upside.
Much of Georgetown, Capitol Hill, Dupont Circle and Logan Circle sits in historic districts, where exterior changes generally need review. Georgetown has its own review board. If your plan involves additions or major exterior work, factor in the review process.
Luxury condos in the West End, Navy Yard and the Wharf can be financed with DSCR loans, with project review of the building's budget, reserves, insurance and rental rules. Condo fees go into the payment.
DC's residential property tax rate is moderate compared with some neighboring jurisdictions, though properties classified as vacant or blighted are taxed at much higher rates. Keep the property occupied and properly registered.
DSCR rates start at 6.125% for well-qualified borrowers and larger balances are priced case by case. Purchases go up to 80% LTV and cash-out refinances up to 75%, but on large balances the maximum LTV is often lower and reserve requirements higher. Some programs require a second appraisal or a more detailed review.
The minimum credit score is 620, with better pricing at higher scores. LLC borrowers are allowed, 30-year fixed options are available and no W-2s or tax returns are required. The financing team reviews your scenario and comes back with 2-3 options.
In the District, loans from $500K to $1M are common for condos and smaller rowhouses. Examples include condo units in Logan Circle, Navy Yard, NoMa and Columbia Heights, rowhouses in Petworth, Brookland, Trinidad and Eckington, and converted two-unit buildings where a basement apartment adds a second rent.
These loans are often closer to standard program terms than $1M+ balances, with leverage nearer the 80% LTV purchase and 75% cash-out maximums and reserve needs that are often lighter. Both vary by program, and the standard minimum DSCR is still 1.0x.
DC's rules apply at every price. TOPA can affect the purchase of a tenant-occupied unit, rental housing needs a business license, and condo association finances get reviewed. Confirm current requirements with a local title company or counsel.
DC files have more legal paperwork than most. Gathering it early keeps the closing on schedule.
Yes. LendingStreet finances investment property in Washington, DC, including Capitol Hill rowhouses, Georgetown homes, upper Northwest single-family rentals and luxury condos above $1 million. Loans start at $150,000 with no stated maximum.
Usually, if the unit is legal, shown on the certificate of occupancy and licensed. Unpermitted basement units are often treated as part of the main house.
It can give tenants the right to be offered the chance to buy before you do, which adds steps and time. Ask the seller's attorney for TOPA documentation and plan your timeline around it.
Generally not. DC limits short-term rentals to the host's primary residence, so investment properties qualify on long-term rent.
Sometimes. Coverage depends on factors like the building's age and how many units the owner holds. Confirm each unit's status with a DC attorney.
Yes. The lease shows the rent the property earns, and the loan qualifies on that rent. Share the full lease, including any early termination terms, with the financing team.
Some programs accept a ratio below 1.0, often with lower leverage, and some offer no-ratio options. A larger down payment or a legal second unit can also help.
Purchases go up to 80% LTV, but on large balances the maximum is often lower and varies by program. The ratio may also need more equity, so run the numbers first.
Yes. Cash-out refinances go up to 75% LTV, and rate-and-term refinances are available. The rent must cover the new payment at the program minimum.
Yes. DSCR loans start at $150,000 with no stated maximum, and $500K to $1M loans are common for condos in Logan Circle, Navy Yard and NoMa and for rowhouses in Petworth, Brookland and Trinidad.
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