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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.