2025 · District of Columbia

How investors finance real estate in District of Columbia

In 2025, 936 investment-property loans worth $572M were originated on single-family 1-4 unit homes in District of Columbia. Here's how those terms compared to the rest of the country.

Investor rate premium

87 bps

U.S. median: 76 bps

Denial rate

31.7%

U.S. median: 17.5%

DSCR / business-purpose

75%

U.S. median: 72%

Median LTV

70%

U.S. median: 74%

Since 2024 in District of Columbia

Rate premium

113 bps → 87 bps

-26 bps

Investor loans

780 → 936

+20.0%

Denial rate

29.5% → 31.7%

+2.1 pts

DSCR / business-purpose

71% → 75%

+3.7 pts

What the numbers say

Investors in District of Columbia borrowed at a median rate of 7.249%, versus 6.375% for owner-occupants — a 87 bps premium that ranks 22nd of 51 states.

Their applications were denied 31.7% of the time. The leading reasons for denial were collateral, credit history, other.

75% of investor loans were business- or commercial-purpose — the category that includes DSCR and LLC-held loans — and 28% were cash-out refinances. The typical loan-to-value was 70%, implying about 30% down.

Frequently asked questions

How much more do investors pay for a mortgage in District of Columbia?

In 2025, the median investment-property loan in District of Columbia carried a rate of 7.249% versus 6.375% for an owner-occupant — a premium of 87 bps. That ranks 22nd of 51 states (1 = highest premium).

What share of investor loan applications are denied in District of Columbia?

31.7% of investment-property applications were denied in District of Columbia in 2025, the 1st-highest denial rate among the 51 states. The most common denial reasons were collateral, credit history, other.

How common are DSCR and business-purpose investor loans in District of Columbia?

75% of investor loans in District of Columbia were flagged as primarily business or commercial purpose — the bucket that includes DSCR and LLC-held loans (10th of 51). The median loan-to-value was 70%.

Run the numbers for a deal here

DSCR Loan Qualifier Mortgage / DSCR Payment All 50 states ranked How we built this

Source: CFPB / FFIEC HMDA combined Modified LAR (loan-level public dataset, early release), 2025. Single-family 1-4 unit, site-built loans; financed purchases only.