When you buy a home, there are a number of fees you will have to pay, including a fee for the appraisal, fees for the title preparation, fees for the inspection, and more. These are called "closing costs." Luckily, if you decide to buy a home with City First Homes, our financing can help cover some of those costs.
Among your closing costs, you should also include the DC Recordation Tax. In Washington, DC, when a homebuyer purchases a home, they usually have to pay 1.1% of the home price as a tax to the DC Government for the new deed to be recorded in the land records. In parallel, the seller usually covers the Transfer Tax, also 1.1% of the home price, which is a tax on transferring real property.
However, for qualified purchasers - purchasers who are lower-income or who are purchasing in an "economic development" zone - you may be eligible for the DC Tax Abatement. If you qualify, not only do you NOT have to pay the 1.1% Recordation Tax; but the seller's 1.1% Transfer Tax amount is credited to you! What a great deal!
To learn more and see if you qualify, visit http://otr.cfo.dc.gov/otr/cwp/view,a,1330,q,594233.asp
- Jyothi Ramakrishnan
No comments:
Post a Comment