The DC Housing Finance Agency’s DC Open Doors program is designed to make home ownership more affordable for those wishing to own a home or condo in downtown Washington, D.C. It is an intensive program that pays your down payment when you meet certain qualifications such as:
- A minimum credit score of 640
- An annual household income of less than $131,040
- An ability to live in the home for at least the first five years of ownership
- First mortgage must be 424,100 or less
The DC Tax Abatement Program, a financial assistance program designed to help lower income homeowners purchase property may be the solution to paying taxes at closing.
Assuming you qualify, you are exempt from paying transfer and recordation taxes. This means not only are you exempt from the 1.1% (of the purchase price) recordation tax; but customarily, the seller’s 1.1% (of the purchase price) transfer tax is credited to you at settlement. You will also be exempt from paying property taxes for 5 years beginning the next full tax year after filing. Here are some of the qualifying factors for the DC Tax Abatement:
- The purchase price for the property must be $367,200 or less
- The income threshold must be met (see table online)
- The property must be a principal residence
- The purchaser must be domiciled in the District of Columbia
The Employer Assisted Housing Program (or EAHP) provides assistance to employees of the District of Columbia Government who are first-time home buyers in the District. Employees of District government agencies may be eligible for matching down payment funds up to $1,500and a deferred loan of up to $10,000. In addition, applicants who apply and qualify for the program receive income tax and property tax credits such as:
- An annual tax credit of $2,000 against income tax liability for five years.
- A real property tax credit based on a sliding scale (see scale online)
The Home Purchase Assistance Program (or HPAP) provides interest-free loans to qualified applicants which provides them the opportunity to purchase houses, condominiums, or cooperative units. Applicants who are accepted into the program are eligible for financial assistance to bridge the gap between the first trust loan and the purchase price and closing cost needs.
Loan amounts are based on a combination of factors including income, household size, and the amount of assets that each applicant must contribute towards the property’s purchase price. Below is a sample of some of the requirements you will need to meet in order to become eligible for HPAP assistance:
- Be the head of the household and a first-time homebuyer
- Be a low-to-moderate income resident, based on the Department’s standards (around $60,000) as of 2014
- The purchased home must be the borrower’s primary residence and must be located in Washington DC
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