Inside Real Estate With Kevin Wood: Programs for Home Buyers in D.C.
This is a sponsored column written by Kevin J. Wood, a licensed Realtor© in the District of Columbia and surrounding area. For more information on buying or selling a property, feel free to contact Kevin at 202-297-9753 or email him.
I recently sat down with a well-known D.C.. lender, David Toaff of First Home Mortgage, to talk about programs for home buyers in the District. Here’s what David had to say:
What benefits are there for first time homebuyers in D.C.?
There are several benefits available, such as the D.C. Homestead Tax Deduction, The D.C. Tax Abatement Program and D.C. Open Doors.
The D.C. Homestead Tax Deduction is a monthly property tax break of just over $50.00/month, just for occupying the property. D.C. Tax Abatement relieves low-moderate income borrowers from any property taxes for 5 years, transfer taxes AND has the seller’s transfer tax credited to them at closing. Income/sales price limits apply!
D.C. Open Doors offers down payment assistance in the form of a 0% interest, deferred loan that is fully forgiven after five years. It also allows for reduced mortgage insurance. Income and credit limitations apply. Maximum first mortgage is $417,000.
D.C. Open Doors can actually be used by anyone who doesn’t own other property at the time the loan closes; there’s no requirement to be a first time homebuyer!
Can buyers take advantage of the D.C. Open Doors program with a co-signer?
You absolutely can by using the D.C. Open Doors’ FHA program. A credit score of 640 is required for all applicants. You can also purchase a multi-unit property with the D.C. Open Doors’ FHA product
Are buyers not allowed to sell or refinance for 5 years, if I use D.C. Open Doors?
No. They simply would have to pay back the remaining portion of the second loan that they still owe, if they do so before five years is over.
What’s the minimum downpayment a buyer can do in D.C.?
Assuming a sales price of $429,896 or less, they can do zero down.
Is it worth saving up more money instead of using a down payment assistance program?
If a buyer is looking in an area where property values are appreciating significantly and is capable of buying now, waiting would be a real financial detriment to them. The loss of enjoyment of appreciation would be a shame.
Can buyers still find a somewhat affordable home in D.C.?
Yes. Although many neighborhoods are extremely expensive, a good realtor can help you find some affordable gems.
David Toaff is a local, licensed residential loan officer with First Home Mortgage and lives in Dupont Circle, D.C. He also enjoys real estate investment and investing in the stock and bond markets. He can be reached on his cell at 610-348-3772 or by e-mail at [email protected]
This is a sponsored column written by Kevin J. Wood, a licensed Realtor© in the District of Columbia and surrounding area. For more information on buying or selling a property, feel free to contact Kevin at 202-297-9753 or email him.
