Washington, DC has a number of credit, closing assistance, and grant programs for current DC residents, and for first time home buyers in DC. Here's a summary:
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. In order to qualify, the total gross household income must not exceed:
- $50,400 for 1 person in household
- $57,600 for 2 persons in household
- $64,800 for 3 persons in household
- $72,000 for 4 persons in household
- $77,760 for 5 persons in household
- $83,520 for 6 persons in household
- $89,280 for 7 persons in household
- $95,040 for 8 persons in household
In addition to meeting the above salary requirements, the property must be owner-occupied by a first-time homebuyer and the purchase price of the property shall not exceed $320,000.
You will be required to provide the closing agent copies of the following:
- Copies of your tax returns from the last two years,
- Copies of your W-2s from the last two years,
- Copies of your two most recent paystubs.
- For more information in this program, please contact Federal Title & Escrow Company or your Realtor.
(Qualifying Income Table Effective: 03/20/2007)