Cohousing-L Mailing List: Re: Home Purchasing Credits

[joyce (jcthorn]

Buying a home with no down payment is irresponsible.  If you can't save enough 
money for a down payment you should not take on the responsibility of owning.
On Aug 17, 2012, at 6:42 AM, Sharon Villines wrote:

> 
>> 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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