Homebuyer assistance programs

Financial aid, tax credits and rebates, for first-time and low-income homebuyers

Here you will find general guidelines as well as state specific information that may affect your closing and closing costs. If you want to calculate your closing costs, please request an instant quote.

What is title insurance?

When a contract purchaser buys a home, the homeowner wants to be certain that the title to the land is clear. But even the most diligent search of the public records could fail to disclose a number of title defects. Read on to learn about a few of the problems that can suddenly surface.

Title insurance claims

Despite a diligent search of public record, it's still possible for a title insurance claim to arise suddenly after you've purchased your home. Often times, claims are rooted in false or misleading information, making them difficult to detect until months -- even years -- after the book is closed on your real estate investment. We've outlined a few scenarios that could result in a title insurance claim:

Compare title insurance policies

Why select enhanced title insurance over limited title insurance?

A homebuyer may choose between a limited title insurance policy and an enhanced title insurance policy, also known as an "Eagle" policy. While in most cases a limited policy will suffice, the Eagle policy covers a host of "post-policy" issues that a limited policy does not, such as forgery, building permit violations and living trust coverage.

Glossary

Have a question about one of the words on your HUD-1 or Good Faith Estimate? Wondering what the basic differences are between a 203(b) and a 203(k) loan? The U.S. Department of Housing and Urban Development compiled an extensive list of terms that are common in real estate transactions. Find it here.

DC First-time Homebuyer Tax Credit

The Taxpayer Relief Act of 1997 (the "Act"), was signed by the President on August 5, 1997. Taxpayers who have not recently owned a home in the District may be eligible for a one-time tax credit of up to $5,000 of the amount of the purchase price against federal income tax. The tax credit is reported on Form 8859, and the taxpayer must file Form 1040 to claim this credit.  Download the DC First-Time Homebuyer Credit Tax Form 8859.

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 1 following your date of closing. In order to qualify, the total gross household income must not exceed:

• $53,760 for 1 person in household
• $61,440 for 2 persons in household
• $69,120 for 3 persons in household
• $76,800 for 4 persons in household
• $82,920 for 5 persons in household
• $89,100 for 6 persons in household
• $95,220 for 7 persons in household
• $101,400 for 8 persons in household

Maryland First-Time Homebuyer Advantage

Is there an advantage of being a first-time homebuyer in Maryland?

The answer is "Yes". If you are a first-time homebuyer in the State of Maryland, then you are exempt from paying your portion of the State Transfer Tax (.25% of the Sales Price).

Closing documents

What documents should I expect to sign at my closing?

You will be required to sign numerous documents at the time of closing.  In the majority of closings, the lender prepares and delivers the documents to the closing agent the day before or day-of closing. Most borrowers do not have the opportunity to review the documents prior to closing.

List of local utilities, service providers

Make the move into your new home a little easier with this list of local utility and service providers. Please note, these links are provided for reference purposes only, and links may stop working without notice. For the most up-to-date information about utilities and service providers in the DC Metro Area, please contact providers directly.

Helpful links for homebuyers

Here you will find external links to websites with valuable information. You may also visit our homebuyer assistance section to learn about opportunities available to homebuyers, including programs that help with closing costs and down payment as well as tax abatement programs. Some of these programs are state specific while others are offered through the U.S. Department of Housing and Urban Development.

Purchasing a condo

Reviewing and understanding a condominium’s declaration and bylaws is extremely important. These documents stipulate nearly every aspect of condominium living -- from the election of the board of directors of the condominium association, to whether you may lease your unit, to owning pets.

Tenancy

Tenancy is possession or occupancy of lands, buildings or other property by title, under a lease or on payment of rent. The most common type is Common Law Tenancies, which is when groups of persons may hold property as a partnership or in the form of a corporation.

FIRPTA Withholding: Tax on Nonresident Aliens Selling Real Property in the U.S.

The Foreign Investment in Real Property Tax Act (FIRPTA) of 1980 authorizes the United States to tax foreign persons who are nonresident aliens selling U.S. real property interests.A U.S. real property interest includes sales of interests in parcels of real property.

Persons purchasing U.S. real property interests (transferee) from nonresident aliens (transferor), certain purchasers' agents, and settlement officers are required to withhold 10% of the amount realized (the purchase/sales price of the real estate going to transferor) and remit that amount to the Internal Revenue Service within 20 days of the transaction.

Like-kind exchange

The exchange of real property for other real property (a "like-kind" exchange) may be a nontaxable event. To be a like-kind exchange, the property you transfer (the "Exchange Property") and the property you acquire (the "Replacement Property") must be both (1) "qualifying" property and (2) "like" property. Read more for full discussion.