Beginning with settlements October 2017, the DC transfer tax rate is reduced to eligible buyers* to .725%. This is a .375% or .725% decrease in the transfer tax for other purchasers. The previous transfer tax was 1.1% for purchases below $400,000 versus 1.45% for purchases $400,000 and above.
So on a $500,000 purchase price, this is a savings of $3625 in closing costs.
*The fine print for the program is spelled out here.
*But the key requirements are:
- The purchaser must be buying their first home in the District of Columbia. It is OK for a buyer to have owned outside DC.
- The property must be a principal residence and buyer must qualify for the homestead deduction.
- The buyer must document that they meet household income limits. Income from all sources is counted.
Income limits by household size:
The maximum purchase price is $632,500.
To proceed, pre-qualify now at: https://ajaffe.gofirsthome.com/startapp
Questions? firstname.lastname@example.org 240 – 479 – 7658