|* Conforming FNMA Loan Amount. Rates may include points.|
Information updated: 10/19/2018
DC First Time Homebuyer Tax Credit
This federal tax credit is available to first-time homebuyers in the District of Columbia. The credit is the smaller of 1) $5,000, if single, married filing jointly, head-of-household, or qualifying widow(er) ($2,500 , if married filing separately) or 2) The purchase price of the home. You may claim this credit if 1. You purchased a primary home in the District of Columbia 2. You (and your spouse, if married) did not own any other primary home in DC during the 1-year period ending on the date of purchase. Other restrictions and other qualifications may apply. You must file the federal form 1040 to claim this credit. For more information, contact the IRS at (800) 829-1040 or visit the local IRS Taxpayer Assistance Center at 500 N. Capitol St., NW, Washington, DC.
Housing Purchasing Assistance Program (HPAP)
HPAP provides interest-free or low-interest loans for down payments, closing costs, or other expenses associated with buying a house, condo, or cooperate in DC. Home buyers with low or moderate income may qualify for the HPAP program and related benefits. HPAP is for first-time buyers who’ve been DC residents for at least a year, are purchasing a primary residence in DC, haven’t owned any residential property in the past 3 years, and have reasonably good credit. Depending on income, you may qualify for tens of thousands of dollars, as well as up to 7,000 or 4% of the purchase price for closing costs, whichever is less. Participants in the HPAP program are often eligible for other benefits, such as a 5-year property tax waiver, a Federal tax credit and a homestead property tax deduction. For very low income families, repayment of loans may be deferred until the home is sold. (see below)
|The specifics of Washington DC's Home Purchase Assistance Program (HPAP): Home Purchase Assistance Program is a program that helps low and moderate income individuals and families buy a home in Washington DC. Up to
How do I qualify... 1. Be the head of household and a first time homebuyer... 2. Be a low to moderate income resident... 3. Cannot have held residential real estate interest within three years prior to application... 4. Must be the purchaser's primary residence and be inside the District of Columbia... 5. Have a good credit rating.
Note: You don't need to be a DC resident to apply but DC residents always come first.
*You need $500 or 50% of liquid assets greater than $3,000
*Loan repayment begins in the sixth year of the loan and is amortized over 40 years.
*If you transfer the property, refinance the property or if the property does not remain your principal residence, the entire amount of the loan may be due immediately.
To apply contact one of the following organizations...
Housing Counseling Services Inc. 2410 17th St NW Washington DC 20009 202/667-7006-108
Marshall Heights Community Development Organization 3939 Benning RD NE Washington DC 20019 202/396-1200
Lydia's House 3939 S Capitol St SE Washington DC 20032 202/373-1050
Latino Economic Development Corp 2316 18th St NW Washington DC 20009 202/588-5102-16
University Legal Services 220 I St NW St 130 Washington DC 20002 202/547-4747To Learn More contact us at 202-677-2818
National Assistant Corporation of America (NACA)
The Neighborhood Assistance Corporation of America ("NACA") is a non-profit, community advocacy and home ownership organization. NACA’s primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable home ownership. NACA has made the dream of home ownership a reality for thousands of working people by counseling them honestly and effectively, enabling even those with poor credit to purchase a home or refinance a predatory loan with far better terms than those provided even in the prime market.
DC Bond Program
The bond program is designed to make home ownership affordable to buyers in DC. To buyers who might not otherwise qualify for a loan. The past program is aimed at first time buyers, those who had not previously owned a primary residence in the past three years, and even repeat buyers if they purchased in "certain targeted neighborhoods." The benefits of the program is used help homeowners with a grant that could be used towards a down payment or closing costs. The interest rates on the loans were compatible with the conventional rates. There is a maximum income limits and purchase prices that will determine final qualifications. The Down payment Assistance is; 1) $10,000 down payment and/or closing cost assistance available buyers. 2) CAN be combined with national and local down payment assistance programs. Contact Anacostia River Realty for more information.
- 4.25% with 1/2 point (subject to change)
- 30 Year Fixed Rate Mortgage
- First-Time and/or Repeat Homebuyers
- FHA Loans Only
- No Income Limits for 30% of Program
DC Tax Abatement Program
The DC Tax Abatement Program provides an exemption from the DC 1.1% Recordation Tax and an allowable credit from your seller(s) of 1.1% equal to the DC Transfer Tax. Additionally, the program provides a five-year real estate tax abatement that begins October 1st following your date of closing.
The Homestead Deduction reduces your real property’s assessed value by $64,000 prior to computing the yearly tax liability. The deduction is limited to residential property.
FHA 203K Home Improvement Loans
No reserves required; 6% seller Contribution allowed; no minimum credit score requirement; Appraisals based on future (improved) value; Owner occupied only, no Second homes, or Investor allowed; Streamline 203K is available for improvements up to $35,000; Non-occupant co-borrowers permitted ; 6 month Rehab period, work must start within 30 days ; Minimum labor is $5000, maximum labor is the lesser of the FHA loan limit or Applicable LTV(Loan To Value) limit; Condos are OK if they are FHA approved and the work is on the inside of unit (Borrowers can do their own work in some situations).
Closing cost assistance for eligible homebuyers. The program offers closing cost assistance to qualified borrowers based on income or the location of the home. Benefits include: 1) No need to repay the grant. 2) Available on a wide variety of loan programs to help purchase or refinance a home. 3) Grant can be used to help cover non-recurring closing costs. Contact an Anacostia River Realty real estate agent for more information.
American Bank First Time Homebuyer's Down Payment Grant Program will provide matching funds for first time home buyers on a 5 to 1 match scale up to $7500.00. For example, if a buyer puts $1500.00 of their own funds in the transaction the buyer is eligible for the entire $7500. The funds are available to all eligible members on a home buyer-by-home buyer, first -come first-served bases. Loans will be offered using this program until the maximum set-aside is exhausted or December 31, 2010, whichever occurs first. Contact an Anacostia River Realty real estate agent for more information.
Contact Anacostia River Realty to learn more about these and other buyer programs.
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