When purchasing a property, there are many different expenses, a lot of which seem to overlap. One expense that is frequently questioned is whether it is worth it to obtain…
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For the latest DC credit program, please view information here on DC’s Newly Enacted First-Time Homebuyers Recordation Tax Reduction program that went into effect October 1, 2018.
Purchase price and income thresholds to qualify for the popular DC Tax Abatement Program have increased, making it easier for more homebuyers to become homeowners.
The District of Columbia Office of Tax and Revenue increased the purchase price threshold to $464,000 from $456,000.
Do You Qualify as A First-Time Homebuyer?
Federal Title’s Guaranteed Quote Tool will instantly answer that question for you by prompting you with all the right questions.
We’ve had a lot of questions about TOPA lately. Some of them listed below.
The new TOPA statute for a single-family home, condominium unit and single-family home with an appurtenant unit is finally in place.
As a homebuyer, it is important to be aware of programs you can benefit from in order to reduce the overall cost of the process of buying a place to live.
The DC Tax Abatement program is one such opportunity that a homebuyer can and should take advantage of.
However, there are qualifications that a homebuyer must meet in order to become eligible for this program, and it is important to stay informed on what these are.
This week, we’re headed over to Columbia Heights to this cozy 654 square foot, 2-bedroom condo. This garden-style suite is conveniently located near the Metro which makes the commute easier. This lovely property is listed for $499,000.
This beautiful condo features a modern kitchen with granite countertops and luxurious stainless-steel appliances. Brazilian hardwood floors lead the way to the two marble bathrooms. In addition, this property features a private balcony for owners to enjoy. What makes this property so appealing is its fully equipped fitness room that is perfect for anyone who likes to stay active. Something else that makes this property so special is its central location near plenty of restaurants and shops for the owners to explore.
Assuming a homebuyer puts down 20 percent on a conventional loan, their cash to close number will be approximately $114,825.64. Monthly payments will then be around $2,224.50 per month (this does not include HOA fees). For a complete picture of the cash to close, including the seller’s side of the transaction, try the Web version of Close It™ or download the free Close It™ iOS app.
Did you know TOPA was amended as of July 3?
The DC Department of Housing and Community Development will hold a workshop to provide an overview of the newly enacted Single-Family Home Exemption Amendment Act of 2018 (Bill 22-0315, Act 22-339). today from 1 to 3 pm.
For those who cannot attend in person, the DHCD Facebook page will also broadcast the workshop live.
The workshop will cover a variety of topics including:
- Types of single family properties that are exempt
- Criteria that an elderly or disabled tenant must meet to still have a limited opportunity to purchase
- Notice and documentation requirements
If you wish to attend today’s workshop in person, you must register. The workshop is free and will take place from 1 to 3 p.m. at One Judiciary Square, located at 441 4th Street NW, Old Council Chamber Room, Washington, DC 20002.
In the process of purchasing a property, it is hard to keep track of all of the elements involved.
Such elements can even include things that could be beneficial to the homebuyer. Therefore, we here at Federal Title do our best to keep homebuyers informed about their options in the homebuying process, like the DC Homestead Deduction, so that they can make the best decisions.
What is there to gain?
The DC Homestead Deduction provides valuable savings when it comes to what amount of the assessed value for your property is taxable.
Currently, the property tax rate is $0.85 per $100 in DC which means that .0085 of your property’s assessed value must be paid as a tax. However, if you are eligible for the DC Homestead Deduction, your property’s assessed value is reduced by $73,350.
Therefore, because the amount the government can tax is less, the money you must pay for the real property tax is less. However, the value by which your property is reduced changes annually and so it is important to stay up to date on that number.
Qualifications
In order to be eligible for the DC Homestead Deduction, there are four qualifications a homebuyer must meet.
First, a Homestead Deduction application must be filled out and on file with the Office of Tax and Revenue (link for DC Homestead Deduction application: https://otr.cfo.dc.gov/node/1299251).
In addition, the property, which cannot include more than five dwelling units, must be the principal residence of the owner/applicant.
Principal residency can be determined by where you pay your taxes, where you vote, what address is on you driver’s license, etc.
Finally, you must be domiciled in DC which means that you have a DC government issued ID, you are registered to vote in DC, and you file DC Personal Income taxes.
If these conditions are met, then you are eligible for the DC Homestead Deduction.
When do you begin receiving the benefits of the DC Homestead Deduction?
When the DC Homestead Deduction goes into effect depends on when the application for it was filed. If an approved application was filed between October 1 and March 31, then the DC Homestead Deduction will go into effect for that entire tax year and every tax year after that.
If an approved application was filed between April 1 and September 30, then the property will receive half of the deduction amount and then the following years after that it will receive the full deduction.
When should you cancel your DC Homestead Deduction?
There are several instances in which you must cancel your DC Homestead Deduction.
It is important that you can recognize the situations so that you don’t fall victim to the District of Columbia’s Homestead Deduction Audit Program.
Essentially, if the property is no longer your principal residence then you must fill out a Cancellation of Homestead Benefit form.
This means that if you moved off the property and are renting it out you must fill out the form. If you purchased another property in DC and filed for a Homestead Deduction on the property then you must fill out the form.
Are you still eligible if you are only a co-owner of a property?
If you are only a co-owner of a property and the other owners will not be living with said property as their principal residence then you are still eligible for the DC Homestead Deduction.
All that is required is that you meet the three qualifications which are that you are a principal resident, your property only includes five or fewer dwelling units, and you are domiciled in DC.
This week, we’re headed over to the U Street – Cardozo area to see this stunning unit that was originally built in 1895, but has been remodeled and updated since. This charming, garden-style condo is 987 square feet and is within walking distance to Cardozo Education Campus. The property is listed for $619,000.
This condo has a lot to offer with its stunning exposed brick that runs throughout it, along with beautiful hardwood floors and tile. The unit has a gorgeous kitchen that includes granite counter tops, stainless-steel appliances, and a breakfast bar that overlooks the living room. In addition, this unit contains two bathrooms, each with their own unique features, one with multiple shower heads and another with a bathtub. What is perhaps the highlight of this unit are the two gas fireplaces that accompany the house.
Assuming a homebuyer puts down 20 percent on a conventional loan, her cash to close number will be approximately $141,747,20. Monthly payments will then be around $1,733.42 per month (does not include HOA fee). For a complete picture of the cash to close, including the seller’s side of the transaction, try the Web version of Close It™ or download the free Close It™ iOS app.
Did you know TOPA was amended as of July 3?
The DC Department of Housing and Community Development will hold a workshop in a couple weeks to provide an overview of the newly enacted Single-Family Home Exemption Amendment Act of 2018 (Bill 22-0315, Act 22-339).
The workshop will take place Wednesday, July 25 from 1 to 3 p.m. at One Judiciary Square, located at 441 4th Street NW, Old Council Chamber Room, Washington, DC 20002. The workshop is free but you must register to attend.
For those who cannot attend in person, the DHCD Facebook page will also broadcast the workshop live.
The workshop will cover a variety of topics including:
- Types of single family properties that are exempt
- Criteria that an elderly or disabled tenant must meet to still have a limited opportunity to purchase
- Notice and documentation requirements
This week we’re heading over to a brand-new condo in Adams Morgan. This beautiful property boasts of a spacious 1600 square feet and a professional, state-of-the-art kitchen. It’s listed for a cool $1.6 million.
This unit was built in 2018 which means that it is equipped with all the newest appliances out there. The 2.5 bathrooms that accompany this house are all up to date and the pride and glory of this house, the kitchen, comes with a gorgeous Viking stove, a commercial fridge, and marble countertops. Another outstanding feature is that both bedrooms have their own private terrace for the owner to use while enjoying the view of the surrounding area. This property is right in the thick of things with plenty of restaurants and hotspots nearby to visit.
Assuming a homebuyer puts down 20 percent on a conventional loan, her cash to close number will be approximately $359,471.02. Monthly payments will then be around $4,669.31 (HOA fees not included). For a complete picture of the cash to close, including the seller’s side of the transaction, try the Web version of Close It™ or download the free Close It™ iOS app.
This week, we’re headed on over to a spacious penthouse loft of 1,369 square feet. This beautiful property has 2 bedrooms and 2 bathrooms, and is fitted with gorgeous, modern amenities. Also included in this residential, garden-style loft unit, is an assigned parking space and, its most unique feature, its cascading spiral staircase. It’s listed at $869,000.
This condo has a two stunning, upgraded bathroom and includes two industrial style bedrooms with exposed ducts on the ceiling. In addition, the unit has a gourmet kitchen with granite countertops, new stainless-steel appliances, and an electric stove. Hardwood floors flow throughout the condo until they reach the condo’s spectacular 200 square foot private terrace that overlooks the city. Also, nearby the condo is Meridian Hill Park, perfect for those who like spending time outdoors.
Assuming a homebuyer puts down 20 percent on a conventional loan, her cash to close number will be approximately $197,834.79. Monthly payments will then be around $3,905.84 (this does not include HOA fees). For a complete picture of the cash to close, including the seller’s side of the transaction, try the Web version of Close It™ download the free Close It™ iOS app.
