Blog ·
Construction Loan Requirements in Washington, DC
Last updated: October 29, 2026. State rules checked against the primary sources listed at the end of this guide.
To build with a construction loan in Washington, DC, you generally need a licensed contractor, a building permit from the Department of Buildings under the DC Construction Codes, historic preservation review if the lot is in a historic district, a floodplain check, and a closing that accounts for DC recordation and transfer taxes. Your lender adds its own credit, appraisal, and draw requirements.
Here's what each step looks like in Washington, DC, with links to the state sources.
Key takeaways
- Builder: DLCP contractor license.
- Code: 2017 DC Construction Codes through the Department of Buildings.
- Site: Historic Preservation Office review in historic districts; DOEE floodplain rules.
- Liens: notice of intent within ninety days after completion or termination.
- Closing: title companies or attorneys; recordation and transfer taxes at recording.
What are the requirements at a glance?
| Requirement | Washington, DC rule | Where to check |
|---|---|---|
| Contractor license | DLCP | DLCP |
| Building code and permits | DC Construction Codes (2017); Department of Buildings | DOB |
| Historic review | Historic Preservation Office | Office of Planning |
| Floodplain | DOEE; FEMA flood maps | DOEE |
| Mechanics' liens | Notice of intent within ninety days | Recorder of Deeds |
| Recordation and transfer taxes | Collected at recording | Office of Tax and Revenue |
| Closing | Title companies or attorneys | Your closing agent |
| Lender licensing | DISB | NMLS Consumer Access |
What do lenders require for a construction loan?
Most construction lenders look for:
- A credit, income, and asset review, much like a regular mortgage
- Enough equity, from cash, land you own, or both. See how land equity works.
- An approved builder with a license or registration, insurance, and references. See builder approval.
- Plans, specifications, and a line-item budget, often with a contingency line
- An "as completed" appraisal of the lot and finished home together
- Title work, a survey, and insurance, including builder's risk during construction
- Reserves for cost overruns, depending on the lender
Requirements vary by lender and loan program. FHA, VA, USDA, and conventional loans each have their own rules.
Does my builder need a license in Washington, DC?
Yes. The Department of Licensing and Consumer Protection (DLCP) licenses contractors in the District (DLCP, contractor and construction services). Ask for the license number and check it before you sign. See how builder approval works.
Ask the Department of Buildings what an owner can do on a permit. Many lenders won't finance an owner-builder, especially for a new home on an infill lot. Read more about owner-builder construction loans.
Which building code applies in Washington, DC?
The District enforces the DC Construction Codes, currently the 2017 edition, through the Department of Buildings (DOB, DC construction codes). A new edition is in development (DOB, construction code development), so ask which code applies when you apply for your permit.
What about utilities and historic districts in Washington, DC?
DC lots are generally served by public water and sewer, so septic and well permits rarely come up. Historic districts and landmarks are more common: projects there need review by the Historic Preservation Office, which can affect design and timing (DC Historic Preservation Office).
What about flood zones in Washington, DC?
Check your lot on the FEMA Flood Map Service Center. If the home sits in a high-risk flood area, the lender will generally require flood insurance. The Department of Energy and Environment manages the District's floodplain rules (DOEE, flood risk management).
How are construction loan closings handled in Washington, DC?
DC closings are commonly handled by title companies or attorneys. Deeds and security instruments are recorded with the Recorder of Deeds at the Office of Tax and Revenue, where DC recordation and transfer taxes are collected (OTR, Recorder of Deeds).
How do mechanics' liens work in Washington, DC?
In the District, a contractor or subcontractor generally must record a notice of intent to hold a lien during construction or within ninety days after the earlier of completion or termination of the project (D.C. Code § 40-301.02). Lenders collect lien waivers as each draw is paid.
Are there state homebuyer programs for building in Washington, DC?
The DC Housing Finance Agency offers homebuyer programs through participating lenders (DCHFA), and the Department of Housing and Community Development runs the Home Purchase Assistance Program (DHCD, HPAP). Ask whether a program can be used with new construction before you plan around one.
How do I check that a lender is licensed in Washington, DC?
Search the lender and loan officer on NMLS Consumer Access. The Department of Insurance, Securities and Banking (DISB) licenses mortgage lenders, brokers, and loan originators in the District (DISB).
What are the steps to build in Washington, DC?
- Confirm the lot can be built on: access, zoning, flood zone, and septic or sewer.
- Choose a qualified builder and get plans, specs, and a line-item budget.
- Compare lenders and get a Loan Estimate for your project.
- Apply. The lender reviews you, your builder, and the plans, and orders an appraisal.
- Get historic preservation review (if needed) and the DOB building permit.
- Close with your title company or attorney and record the deed and security instrument with the Recorder of Deeds.
- Build. The lender pays the builder in draws after inspections. You pay interest on the money drawn so far.
- Pass the final inspection and get a certificate of occupancy.
- The loan converts to your permanent mortgage. See what happens at conversion.
Where can I learn more?
Comparing lenders? Read how to choose a construction-to-permanent lender in Washington, DC or see our list of Washington, DC construction loan lenders. Building somewhere else? See our construction loan guides by state.
Frequently asked questions
Can I be my own builder in Washington, DC?
Ask the Department of Buildings. Many lenders won't finance an owner-builder for a new home.
Which building code applies to a new home in Washington, DC?
The 2017 DC Construction Codes, enforced by the Department of Buildings. A new edition is in development.
Do I need historic review to build in Washington, DC?
If your lot is in a historic district or is a landmark, the Historic Preservation Office reviews the project, which can affect design and timing.
How long does a contractor have to file a lien in Washington, DC?
A notice of intent generally must be recorded during construction or within ninety days after the earlier of completion or termination.
What taxes are due when a DC construction loan closes?
DC recordation and transfer taxes are collected by the Recorder of Deeds when documents are recorded. Your closing agent will itemize them.
Sources
- DLCP, contractor and construction services
- DOB, DC construction codes
- DOB, construction code development
- DC Historic Preservation Office
- FEMA Flood Map Service Center
- DOEE, flood risk management
- OTR, Recorder of Deeds
- D.C. Code § 40-301.02
- DCHFA
- DHCD, HPAP
- NMLS Consumer Access
- DISB
Ready to build in Washington, DC?
Tell us about your lot, your builder, and where you are building. Get connected at My Construction Path, and we'll connect you with lenders who offer construction financing in Washington, DC.
My Construction Path is not a lender and does not make loans or credit decisions. Not all borrowers will qualify. Equal Housing Opportunity. Requirements vary by lender, loan program, and location. This article is for general education and is not a commitment to lend. It is not a quote of rates, payments, or loan terms.