Home Purchasing Credits
From: Sharon Villines (sharonsharonvillines.com)
Date: Fri, 17 Aug 2012 05:42:34 -0700 (PDT)
From time to time people ask whether Takoma Village has affordable housing 
credits when we were built or about home buying subsidies elsewhere. A mortgage 
broker just posted some details on our local neighborhood list. A similar 
program was available 12 years ago when Takoma Village was built. A goodly 
number of our residents qualified. A number of people were able to buy market 
rate units with no downpayment.

Other locations may have the similar programs. I don't know if there is a 
central registry somewhere -- a good project if not.

One important thing for us was a community member willing and able to 
understand the ins and outs of applying and the developer working with the bank 
before hand to ensure that the funds were set aside since our closing date was 
delayed. We had the same bank and the same law firm handling a huge majority of 
our mortgages and closings. That was very helpful and expedited the process. I 
highly recommend it.

This says "IRS form" so I assume that part is a federal program. 

> You may be eligible for a first time buyer credit of $5000.  Here is the IRS 
> tax form: http://www.irs.gov/pub/irs-pdf/f8859.pdf
> 
> DC's page on the subject: 
> http://otr.cfo.dc.gov/otr/cwp/view,a,1330,q,594156.asp
> 
> The issue is that they haven't yet extended the credit for 2012 yet.  See the 
> IRS form for income restrictions, if you are buying as an individual, the 
> income max is $90,000, married, $130,000. 
> 
> Also, there is another program you may be eligible for.  DC has property tax 
> abatement for 5 years if you income qualify.  As an individual that income 
> max is $59,000.  You won't pay property taxes for five years beginning in the 
> next October that comes after purchasing.
> 
> Finally, if you qualify for tax abatement, then DC's transfer and recordation 
> taxes will not be charged.  For sales prices below $400,000, that means you 
> save 1.1% of the sales price, and also the seller credits you their 1.1% 
> portion instead of paying it to the government.  $400,000 and above it's 
> 1.45%/1.45%.
> 
> As you can see, provided that you qualify, DC is very first time buyer 
> friendly.

Sharon
----
Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org





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