Announcement – Brand New Senior Citizen Homeowner Property Tax Program

Government Assistance to
Homebuyers and Homeowners
in the District of Columbia
 

The District of Columbia Government provides the most generous set of homebuyer support and tax benefits of any location in the country.  These benefits include Down Payment Assistance, Closing Cost Credits, Real Estate Tax Abatement and a special Federal Income Tax Credit.  Most people, including many real estate professionals and mortgage lenders, don’t know about all the programs. Homebuyers should learn about these benefits and take full advantage. For further information call the organizations noted below.

1. The Home Purchase Assistance Program (HPAP) provides to low and moderate income first-time homebuyers down payment assistance of up to $70,000 and needed closing cost assistance of up to $7000. Eligibility includes income, family size, and DC residency. (For further information, call a HUD-approved counseling agency on this website’s list.)

1. The Employee Assisted Housing Program (EAHP) provides DC Government employees deferred payment second mortgages of up to $10,000 and down payment and closing cost funds of up to $1500. (Call a HUD-approved counseling agency on this website’s list.)

1. The Metropolitan Police Housing Assistance Program (MPHAP) provides $10,000 deferred payment second mortgages.  Also, eligible police officers may receive an annual income tax credit of $2000 and a partial property tax credit, each for five years. (Call a HUD-approved counseling agency on this website’s list.)

1. Property Tax Abatement has two benefits for first time homebuyers in DC on purchase prices up to $264,000. a. Payment of property tax is waived for five years and is available to those who meet income guidelines such as $71,520 for a family of four; b. Assistance for closing costs or down payment in an amount equal to 2.2% of the purchase price is also available to eligible homeowners if conditions are met.  (Call the Office of Tax and Revenue at 202 727-4829.)

1. The Individual Development Account program provides prospective borrowers with up to $3 in matching funds for every $1 saved up to a total of $4000 for use in their home purchase. (Call the Manna Homebuyer Club at 202 832-1845.)

1. The DC Housing Finance Agency home mortgage program, known as the “DC Bond Program,” periodically provides first mortgages at discounted interest rates. (Call 202 777-1600.)

1. The up to $5000 DC Home Buyer Tax Credit is provided as a federal income tax credit to first-time buyers who meet the maximum income limits.  (Call IRS at 1 800 TAX-FORM for the form to file for the credit with your federal tax return.)

1. The DC Homestead Deduction reduces, in FY 2007, a homeowner’s property tax by $552 for most owner-occupied homes. (Call Office of Tax and Revenue at 202 727-4829.)

1. The DC Senior Citizen or Disabled homeowner program cuts property taxes in half. (Call Office of Tax and Revenue at 202 727-4829.)

1. Three DC Home rehabilitation programs for senior citizens, handicapped accessibility, and code violation repairs are available in amounts up to $10,000 and above. (Call a HUD–approved counseling agency on this website’s list.)