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DC HOMEBUYING PROGRAMS



Not making the dough you think you need to buy a property?

Think you can't get a monthly payment for your rent?

**Don't ASSUME!**
 
Not making the dough you think you need to buy a property in DC? You might be surprised at how many young professionals buy their first place on less than $60K income (or even $45K income!) The less you make, the more assistance you get to buy your first condo - contact Rachel today to see how she has helped countless individuals get their foot in the door!




Home Purchase Assistance Program
Qualified applicants receive financial assistance for down payment, up to a $40K interest-free loan AND PAID CLOSING COSTS to purchase single-family houses, condominiums or cooperative units. If you make under $50,400, you will even qualify to not pay ANY taxes on your condo/property for 5 entire years! That's a $10-$15K savings!




Are you eligible?
To be eligible for HPAP assistance, you must meet the following criteria:

1. Be the head of the household and a first-time homebuyer.

2. Be a low-to-moderate income resident, based on the Department’s standards.

3. Cannot have had ownership interest in any residential real estate within the three years prior to application.

4. The purchased home must be the borrower’s primary residence and must be located within the District of Columbia.

5. Possess a good credit rating.

Please note: District residents will always be the priority for HPAP assistance. Non-resident applications will be accepted, but only processed for eligibility at times when there are no pending applications from District residents.




How much assistance is available?
Effective June 30, 2006 and until further notice, the total amount of financial assistance for down payment provided to very low-, low-, and moderate-income eligible households is up to $40,000 based upon household income, need, the availability of funds, and prevailing trends in the real estate market. Closing cost assistance is provided separately, and will be calculated for eligible households to be 4% of the home purchase price or $7,000, whichever is less.




How much will I need to contribute to qualify?
HPAP recipients contribute $500 or 50% of liquid assets greater than $3,000, whichever is greater. For very low- and low-income applicants, the contribution in excess of five hundred dollars ($500) may be waived by the Director where there is demonstrated need and the applicant is elderly, handicapped, disabled, or displaced.




How is the loan repaid?
Payment on loans made to any income-eligible household under this program are deferred for the first five years. Monthly principal-only payments begin at the start of the sixth year of the loan, amortized over a 40-year period.

The entire amount of the loan is immediately due and payable if:

• the borrower transfers the property,

• the property is refinanced (unless the refinance meets certain conditions), or

• the property ceases to be the borrower’s principal place of residence.




How can I apply?
To apply for HPAP assistance, please contact Rachel!




D.C. Tax Abatement Program
If buyers meet the following income criterion they are eligible for the Lower Income Tax Abatement program. This program provides for five years of exemption from real property taxes (beginning with the tax year beginning in October following the date of purchase). In addition to this exemption, buyers are exempt from paying their 1.1% Recordation Tax and the sellers’ 1.1% Transfer Tax can be applied as a credit to the buyers in lieu of said tax being paid to the District of Columbia. [D.C. Code 47-3503(a) and (b)]

Note: This program is only available for properties with a sales price of $326,760.00 or less.



Click here to view a graph showing the calculated maximum downpayment assistance available per household income by household size.


In order to qualify for the tax abatement program buyers must complete an application at or before the time of settlement as well as provide the District of Columbia with the following financial documentation:

1. Two (2) most recent paystubs (within 30 days of closing);

2. Prior two (2) years’ W-2 forms;

3. Prior year’s Federal Income Tax Return; and

4. Prior year’s District of Columbia Tax Return (if applicable).





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Rachel Valentino. Condo Washington DC, Condo in DC, Condo for Sale in Washington DC, DC Condo for Sale, Luxury Condo Washington DC, DC Real Estate,  DC Real Estate for sale, Georgetown DC Real Estate, DC Real Estate Agent
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