DC Area First Time Home Buyer News

Dec. 2, 2015

Big Opportunities For DC, VA, or MD First Time Home Buyers

Loan Programs Benefit DC, VA, or MD First Time Home Buyers

Home Shopping Is Fun For DC, VA, or MD First Time Home BuyersDC, VA, or MD first time home buyers have many options to choose from when it comes to purchasing a home. Often the most challenging aspect is coming up with a down payment. In years past buyers could easily buy a home with a low or even no down payment. Recent changes in the loan industry make this much harder to do. Luckily, many programs exist to decrease the amount of down payment required for DC, VA, or MD first time home buyers.

The DC metro area, in particular, has programs designed just for first-time homebuyers! Read more about DC first time homebuyer loans here!

Not to be left out, Virginia First Time Home Savings Plan (FHSP) gives tax incentives to home buyers AND to their family members, if they contribute to the down payment on a first home.

Virginia's FHSP, allows an individual to contribute up to $50,000 and avoid interest and capital gains on the account, meaning the earned amount, which can increase to $150,000 is tax-exempt in Virginia. Restrictions on this program state that the home buyer must be a first-time home buyer, though their are no income limits. Account contributors can be family or friends and the funds can even be used to pay for closing costs for a first-time homebuyer.

Search Qualifying Virginia Homes here.

The DC Open Doors Program provides DC first time home buyers down payment assistance to home buyers earning up to $123,395/year with a credit score of at least 640. Debt to income ratios need to be below 46% as well. This program will loan up to 3.5% of the home price as a down payment and 20% of the loan is forgiven every year the homeowner stays in the home.

Another excellent money saving tool is the Home Purchase Assistance Program (HPAP). HPAP can be extended to first-time home buyers and homeowners who have not held title on a home in the 3 years prior to application. Interest-free loans of up to $40,000 are available and closing costs of up to $4,000 are available, too.

Eligibility for HPAP is a little trickier. The home buyer must be considered as head of household and a first-time home buyer (or without a home for 3+ years) and be considered to have a low-to-moderate income. The funds must be used to purchase a primary residence in D.C.

One program that is beneficial to some is the Employer Assisted Housing Program (EAHP). If you are working in DC and are a first-time homebuyer, you may qualify. Down payments of up to $1,500 can be matched and a loan deferral of up to $10,000 is possible. Plus, D.C. home buyers can take income property tax credits for the first 5 years of ownership. The catch to this program is that homes must be purchased for $430,000 or less.

Search Qualifying D.C. Homes here.

The Maryland HomeCredit Program has similar restraints on home price (up to $430,000), but gives down payment assistance and matching option and also provides first time home buyers (or those who have not owned in 3+ years) a tax credit which equates to 25% of the value of their mortgage interest payments, capping at $2,000 each year for the entire life of the loan.Income limits are dictated by county, so it's especially important to understand county boundaries while home searching. Also, the 3+ year ownership rule can be waived if a home is purchased in specific "targeted" areas.

In terms of income, home buyers are limited to a threshold of $128,760 for a 2 person household and all loan holders must live in the home. The funds granted can be used in a variety of ways, from the down payment and closing costs to home inspections and prepaid/escrow expenses. On occasional, zero-interest deferred and forgivable loans may be offered with outright cash grants, so it's worth taking a thorough look at this program.

Search Qualifying Maryland Homes here.

Posted in News
Nov. 30, 2015

How DC Open Doors Works - A Benefit to You

Explaining the Ins and Outs of DC Open Doors 

DC Open Doors Works and Makes your DC a RealityThe DC Open Doors offered by the DCHFA provides new home buyers the option to obtain a zero down home in downtown DC. You really can completely ELIMINATE your Down Payment on the purchase of a home or condominium priced under $430,000. First time home buyers and repeat home buyers are eligible for this program, though your primary residence must be sold and settled prior to closing on your new $0 Down home.

Search For a DC Open Doors Home

Eligibility is determined by your income and credit score. You need to earn under $125,580 per year (in 2015) and have a credit score of at least 640. Your potential home must also qualify for the DC Open Doors program and you must use a real estate agent and DCHFA approved lender/mortgage officer in the home purchase. Edelin Real Estate has closed many of these sales and can help you navigate the process. Once purchased, you must commit to living in your home for 5 years.

The DC Open Doors is easy to apply and receive, provided you follow the steps outlined and work with an informed real estate group, experienced in these transactions. Removing the down payment makes the road to home ownership accessible, but there are still other costs related to buying a home or condo, so make sure you recognize those. Closing costs on the home, loan and inspection fees, and an appraisal are still required, though you would pay those on any property.

Our team is trained in the DC Open Doors DCHFA rules and qualifications, as well as many similar financing programs and we'd love to see you in your new DC home! Contact us to get started!

Curious about averages? Read this short article on DC Open Doors in the Washington Post.

Posted in News