In DC, a $1.5M+ rental is often a single rowhouse: a Capitol Hill or Logan Circle building split into three or four units. The District's tenant laws shape what you can buy and how you can rent it as much as the price does.
In short: LendingStreet offers jumbo DSCR loans, about $1.5M to $5M+, on 1-8 unit rentals across the District, qualified on rent with no tax returns. Jumbo deals here are often converted rowhouses with two to four units, single-family homes in Georgetown, Cleveland Park or Chevy Chase DC, and small 5-8 unit buildings. Rent control, the Tenant Opportunity to Purchase Act, business licensing and the ban on non-owner-occupied STRs all matter.
Capitol Hill, Logan Circle, Dupont Circle, Shaw and Bloomingdale have Victorian rowhouses, many converted into two to four units that lease to professionals working downtown and on the Hill. Georgetown, Cleveland Park and Chevy Chase DC have high-value single-family homes.
Petworth, Columbia Heights and Brookland have more rowhouse conversions at lower prices, and the Navy Yard has newer condos near the waterfront.
| Area type | Examples | What a jumbo loan usually covers | Check first |
|---|---|---|---|
| Rowhouse core | Capitol Hill, Logan Circle, Shaw, Bloomingdale | 2-4 unit rowhouse conversions | Permits, certificates of occupancy |
| Single-family high value | Georgetown, Cleveland Park, Chevy Chase DC | Executive and diplomatic leases | Rent support, historic district rules |
| Uptown and emerging | Petworth, Columbia Heights, Brookland | Rowhouse conversions, small buildings | TOPA, rent control status |
A single-family DC home above $2M usually rents for a modest share of its value, so the ratio at full leverage is often below 1.0x. A legally converted three- or four-unit rowhouse earns more rent per dollar, which is why so many DC jumbo DSCR loans are on these buildings.
Lenders check that each unit was permitted and has a certificate of occupancy. Conversions to three or more units in rowhouse zones generally need special zoning approval, so verify the permit history before you buy.
DC's residential property tax is moderate compared with nearby suburbs, and the District reassesses every year. Vacant and blighted properties are taxed at much higher levels, so keep units occupied and in repair.
DC charges both a deed recordation tax and a transfer tax, with higher brackets above a set price, typically split between buyer and seller. On a jumbo purchase these are significant cash items; your title company can estimate them.
This example is illustrative and not a quote. An investor buys a legally converted four-unit rowhouse on Capitol Hill for $2,100,000. The units rent for a combined $12,400 a month. DC taxes are $1,490 a month and insurance is $450.
Sized at 75% LTV, the balance is $1,575,000 and estimated principal and interest runs about $10,479. Taxes ($1,490) and insurance ($450) take the total to about $12,419. Divide $12,400 of combined monthly rent by that and the ratio is about 1.00x.
At 70% LTV the loan is $1,470,000, estimated principal and interest is about $9,780, and the payment drops to about $11,720, putting the ratio at about 1.06x.
At 75% LTV the building sits right at the 1.0x line, so a small rise in insurance or taxes could push it under. The lower loan buys a cushion.
| Line item | At 75% LTV | At 70% LTV |
|---|---|---|
| Value | $2,100,000 | $2,100,000 |
| Loan-to-value | 75% | 70% |
| Loan amount | $1,575,000 | $1,470,000 |
| Estimated principal and interest | $10,479 | $9,780 |
| Property taxes | $1,490 | $1,490 |
| Insurance | $450 | $450 |
| Total monthly payment | $12,419 | $11,720 |
| Combined monthly rent | $12,400 | $12,400 |
| DSCR | About 1.00x | About 1.06x |
DC's Tenant Opportunity to Purchase Act gives tenants rights when a rental building is sold, and the process adds time to purchases of occupied multi-unit buildings; single-family homes are largely exempt with limited exceptions. Rent stabilization covers many buildings built before 1976, with exemptions for some small owners who register properly.
Every DC rental needs a basic business license for rental housing. DC allows short-term rentals only in a host's primary residence, so a non-owner-occupied nightly rental is not permitted. Plan DC jumbo rentals around standard leases.
Large-balance DSCR loans use the same test as any other: monthly rent divided by principal, interest, taxes, insurance and any association dues. The standard minimum is 1.0x. You qualify without personal income documents, with a 620 or higher score, and you can close in an LLC.
Balances from about $1.5M to $5M+ get more scrutiny. Lower maximum LTV, larger reserve requirements and an extra valuation are common, and each varies by program. Rent support matters more too, so recent signed leases on comparable Washington, DC properties make the file stronger. Strong reserves and clean credit also help on the largest balances.
Not every big balance is one building. If you own five or more rentals in the area, a blanket portfolio loan can put them under one closing and one payment, qualified on the combined cash flow, with release provisions when you sell one. Some programs also cover properties in more than one state.
Owners who already hold a large rental often use a DSCR cash-out refinance, up to 75% LTV where the rent supports it, or a rate-and-term refinance to replace a maturing loan. Cash-out seasoning varies by program. Either way, the rent has to cover the new payment at the program minimum.
Send the basics first and the rest during underwriting. The items that most often slow a large file are:
Use the form below or call (877) 298-1001 with the property details. LendingStreet will show two or three structures, including a sub-1.0 program where it fits. Our investor loans are business-purpose loans on non-owner-occupied property. Compare this with our DC jumbo DSCR page for statewide context.
It applies to most occupied rental buildings, giving tenants rights when the property is sold. Single-family homes are largely exempt. Talk to a DC real estate attorney.
No. DC limits short-term rentals to a host's primary residence, so non-owner-occupied nightly rentals are not allowed.
Many buildings built before 1976 are, but some small owners qualify for exemptions if they register. Check with the District housing agency.
Yes. Rental housing requires a basic business license, and lenders may ask to see it.
Timing depends mostly on the appraisal, title and insurance. Jumbo files can take longer because of the extra valuation review, so order the insurance quote and gather leases early. A complete file at the start saves the most time.
On some programs, yes, using projected short-term rental revenue, but only where local permit, zoning and HOA rules allow the property to operate as a nightly rental. Booking history helps on an existing rental.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the home must be rented to tenants and not used as your residence. If you plan to move in later, this is not the right loan.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.