DC Buyer Programs

For first time homebuyers in Washington, DC, there are some great options you should investigate if you are considering a purchase.

First is the DC Tax Abatement program.  This program has two components and is based on household income to qualify.  Qualification guidelines are available elsewhere and each buyer should consult their licensed real estate agent and a settlement agent or attorney about their specific situation.

The first component of this program is the elimination of the DC Recordation Tax (for properties under $400,000 purchase price, this is 1.1% of the sales price for each side of the transaction) and a possible seller credit of the other 1.1% of the DC Transfer Tax.

The second portion is potentially more impactive. Starting in the first tax year following purchase, with the DC property tax cycle running October 1 to September 30, the buyer is exempt from DC property taxes for 5 years, assuming you live in the property as your primary residence for that full period.

In addition to these tax programs, there are currently a number of mortgage programs aimed at DC first time buyers, too.  For example, the DC Open Doors program is one option available through specific mortgage lenders.  There are low down payment requirements and potential down payment assistance (in some cases through a low or no-interest loan) for qualified buyers.

I have one buyer client now (and potentially a second client) working with a mortgage lender on a Community Reinvestment Act (CRA) loan for first time homebuyers.  This has a low interest rate, low down payment requirements, and no private mortgage insurance.

A skilled and experienced Realtor can guide you to programs that could help make your dream of home ownership a reality, within your means, and with the right loan, and home, for you.