Information about the DC First-time homebuyer tax credit

In case you were questioning if now was a good time to purchase a home in Washington, DC...look no further!

Despite the end of the Federal first-time homebuyer tax credit, DC has continued the $5,000 DC First-time homebuyer tax credit until the end of the year. Here is more information you need to know as follows:

Who qualifies for the DC tax credit?
The tax credit is aimed at people buying their first principle residence in the District of Columbia. This means that owning a previous primary residence outside of DC does not hurt your eligibility. If you haven’t owned a primary residence in DC, you qualify for the local tax credit, even if you’ve previously owned homes in other areas.

Also, you qualify as a first-time DC home buyer as long as you haven’t owned a DC home in the one-year period prior to the purchase of your home. The national tax credit had a stricter requirement; it required buyers to have no primary home ownership for three years prior to home purchase.

How much is the DC tax credit worth?
The credit’s value is the lesser of:

-Up to $5,000, if single, married filing jointly, head-of-household, or qualifying widow(er)
-$2,500 if married filing separately


What types of homes qualify for the DC tax credit?
The home must be your primary residence. It can be a single family home, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence.

Are there any income restrictions for the DC tax credit?
The income restrictions are based on your modified adjusted gross income (MAGI):

If your MAGI is $70,000 or less ($110,000 or less if married filing jointly), you qualify for the full $5000 credit.
If your MAGI is between $70,000 and $90,000 ($110,000 and $130,000 if married filing jointly), you qualify for a partial credit; the more you make, the less credit you receive.
If your MAGI is over $90,000 ($130,000 if married filing jointly), you do not qualify for the credit.

Are there any other restrictions?
You do not qualify for this tax credit if:

-You acquired your home from certain related persons or by gift or inheritance. Related persons include, but are not limited to, your grandparents, parents, spouse, children, and grandchildren.
-You previously claimed this tax credit on a prior home purchase.
-You qualified for the national home buyer tax credit.

How do I claim the DC tax credit?
You must fill out IRS Form 8859 and submit it with your annual tax returns.



Call me at 301-452-4767 if you have any real estate questions!

IMPORTANT: New Mortgage rules makes it difficult for Condos

I know it seems like everytime you turn around, there are NEW mortgage changes affecting the real estate. Well, you are absolutely right!

This time with the NEW rules, it is more difficult to get mortgage financing for condos...as if it wasn't difficult already to purchase a home.

WHAT ARE THE NEW RULES?

The owner occupancy of a building must be at least 51% owner occupied to purchase with an FHA loan.

The owner occupancy of a building must be 70% for a conventional purchase.

For both FHA and conventional, the delinquent condo dues must be under 15%.

WHAT DOES THIS MEAN FOR YOU?

This means that more than ever, as an owner of a condo, you are financially tied to other owners in the building. If they are behind in their condo dues, it will be more difficult for you to sell your home. As an owner, your options might be limited for renting your home to move to bigger and better things, if your condo building is nearing or above the minimum investor ratio.

From a buyer's perspective, you will need to inquire about the condo association's investor ratio and delinquency rate before placing an offer on that PERFECT condo.



Call me at 301-452-4767 with any real estate questions!

Property of the Week: The Metropole

LOCATION
The Metropole is a 90-unit condo building in the vibrant Logan Circle neighborhood. This mixed-use building is located on the 1400 block of P St. NW at 1515 P St. NW, and is home of VIDA Fitness, BANG Salon, etc. The building towers across from the Whole Foods, CVS, and old Duron Paint store. Metropole is surrounding by some of the city's best Zagat rated restaurants and a few blocks from metro and White House.





AMENITIES
The Metropole was developed by Metropolis Development (MDC), which also built Cooper-Lewis, Lofts 14, and Langston Lofts. Architecture by RTKL and interior design by Cecconi Simone offers a loft-style condo: with 20-foot high floor to ceiling windows, Exposed ceilings and ductwork, Bosch stainless steel appliances standard, large private terraces on all top floor units.





PRICING
The pricing of one bedroom units start at $485,000 to two bedroom starting at $700,000 - $2 Million.





Call me at 301-452-4767 if you have any real estate questions.

Living in DC: Dupont Circle

When looking at DC neighborhoods to reside, there are many options to choose from depending on your living criteria. One such residential neighborhood is the Dupont Circle, a historic district in the Northwest part of the city.



"Dupont Circle is located in the "Old City" of Washington, D.C. — the area planned by architect Pierre Charles L'Enfant — but remained largely undeveloped until after the American Civil War, when there was a large influx of new residents. The area that now constitutes Dupont Circle was once home to a brickyard and slaughterhouse." (Wikipedia)

SHOPPING AND RESTAURANTS
Dupont Circle is a local hub of activity with numerous retail stores, coffeehouses, lounges, and restaurants enjoyed by many residents and visitors. The two popular corridors of commerce are Connecticut Ave. and 17th Street with stores such as GAP, Victoria Secrets, etc. The variety of restaurants range from sit-down French Bistro to five-star Sushi restaurants. There are no shortage of happy hour venues such as Bar Dupont, Gazuza, One Lounge, and Circa.





VICTORIAN ROWHOUSES
Dupont Circle is well-known for its elegant style rowhouses. These Rowhouses were primarily built prior to 1900 feature variations on the Queen Anne and Richardsonian Romanesque revival styles. These rowhouses start at $1.5 Million.



DUPONT UNDERGROUND
Dupont Underground is an abandoned streetcar/trolley terminal and tunnel, which is located underneath Dupont Circle but above the Metrorail tracks.





The streetcar tunnel was completed in 1949. The Arts Coalition for Dupont Underground recently launched a campaign to reopen the station and tunnels as a gallery for the arts community. The Arts Community proposes a new gallery space below Dupont Circle near many existing above-ground galleries. Earlier this year, the District began seeking developers to take on this project.





Call me at 301-452-4767 if you have any real estate questions.