DC First Time Homebuyer Program vs DC Lower Income Tax Abatement Program: What proof of income documents do I need to provide to the title company?
The District of Columbia offers several homebuying programs, including the popular DC Tax Abatement program and the DC First-time Homebuyer Recordation Tax Reduction program.
We’ve noticed sometimes homebuyers get these two programs confused when it comes to household and documentation requirements.
Here we break down the household and income document distinctions for DC Tax Abatement and the DC First-time Homebuyer Recordation Tax Reduction program.
DC First-time Homebuyer Program (Recordation Tax Reduction)
- 1. Household: Uses income of all household members and purchasers (grantees) listed on the deed. Even if the grantee does not intend to live in the property, DC will use his or her income.
- a) Ex. Father is on deed to the property with Son as purchasers, but the Father will not be living in the property. DC will use the Father’s income to determine qualification.
Persons in Household Income* 1 $158,760 2 $181,440 3 $204,120 4 $226,800 5 $244,980 6 $263,160 7 $281,340 8 $299,520
DC Tax Abatement (Lower Income Homeownership Exemption)
- a) Ex. Father is on deed to the property with Son as purchasers, but the father does not intend to live in the property. DC will not use the father’s income to determine qualification.
Persons in Household Income* 1 $66,900 2 $76,440 3 $85,980 4 $95,520 5 $103,200 6 $110,820 7 $118,500 8 $126,120
* Deemed accurate at the time of publication. Contact us for more information.