First-Time Homebuyer Programs to Help Smooth Purchase Challenges

Eric Boutcher, Atlantic Coast Mortgage.

It’s not easy being a buyer right now, but there are important lending and grant programs that give first-time home buyers a head start.

Navigating the intricacies of the real estate market can be daunting for any home buyer. From finding the perfect property to securing the best deal, the journey to homeownership can be filled with challenges. Partnering with the right professionals can make all the difference. Throughout the DMV, there are a number of programs available for first-time home buyers as well as qualified repeat buyers that may provide you with valuable assistance.

Let’s dive into a high-level overview of some programs that may help make ownership more affordable.

DC Open Doors:

DC Open Doors is a program aimed at making homeownership more accessible. It offers 100% financing options via 0% interest, deferred down payment assistance loans, as well as reduced mortgage insurance costs to qualified buyers. The program is open to both first-time and repeat buyers, with income and purchase price limits, and provides educational resources and counseling to help individuals navigate the home-buying process.

DC Tax Abatement Program:

The DC Tax Abatement Program is designed to assist low- to moderate-income individuals and families in Washington, DC, with purchasing a home by providing relief from certain property taxes. Eligible buyers may receive an exemption from paying the recordation tax at closing and an abatement of the real property tax for the first five years of homeownership. To qualify, applicants must meet income and purchase price limits, use the property as their primary residence, and fulfill other criteria. The program aims to make homeownership more accessible and affordable for residents, particularly those with lower incomes, by reducing upfront and ongoing housing costs.

Discounted Recordation Taxes for first time DC Buyers:

First-time purchasers in Washington, DC might be eligible for a significant discount in the recordation taxes paid to the District. For a purchase price below $400,000, both the buyer and the seller typically pay 1.1% in taxes; at or above a $400,000 sales price, both parties typically pay 1.45% in tax. For those individuals purchasing a primary residence in DC, eligible for the homestead deduction, and below certain income limits, the amount of recordation taxes you will have to pay can be capped at .725%. As an example, for the purchase of a $600,000 home in DC, a qualified individual would only have to pay $4,350 in recordation taxes to the city rather than the standard $8,700 – a savings of $4,350!

VHDA:

The Virginia Housing Development Authority (VHDA) is a key resource for individuals seeking to achieve homeownership in Virginia. Recently, VHDA introduced groundbreaking changes aimed at expanding accessibility to their programs, notably eliminating the first-time homebuyer requirement which opens opportunities for a broader range of buyers. Additionally, VHDA offers a 2% grant program, providing financial assistance towards down payments and closing costs, easing the financial burden of purchasing a home. Another noteworthy initiative is the VHDA Plus program, which offers 100% financing, and some buyers may even qualify for an additional 1.5% in funds to be applied toward closing costs. Through the recent guideline changes, VHDA is enhancing affordability and making homeownership dreams more achievable for Virginians.

Maryland Mortgage Program:

The Maryland Mortgage Program (MMP) offers a range of products to assist Maryland residents in achieving their homeownership goals. These include:

Down Payment Assistance: MMP provides various down payment assistance options, including grants and loans, to help homebuyers cover upfront costs.
Maryland SmartBuy: Aimed at helping individuals with existing student debt purchase a home, SmartBuy offers assistance with student loan repayment through a home purchase incentive.
Partner Match: MMP collaborates with local employers, nonprofits, and other organizations to offer additional down payment and closing cost assistance to eligible homebuyers.
Mortgage Loans: MMP provides fixed-rate and adjustable-rate mortgage loans with competitive interest rates and flexible terms, catering to a variety of financial situations and preferences.
Flex Loans: These loans offer higher loan-to-value ratios and relaxed underwriting guidelines, making homeownership more attainable for individuals with lower credit scores or limited down payment funds.

Overall, the Maryland Mortgage Program provides a comprehensive suite of products and services designed to make homeownership more accessible and affordable for Maryland residents.

ACM Grant Program for Eligible First-Time Buyers and Community Partners:

Atlantic Coast Mortgage offers a grant program for eligible buyers to help with down payment and closing cost assistance. Eligible first-time home buyers can receive up to a $12,500 grant and community partners – which includes firefighters, first responders, doctors, nurses, law enforcement, educators, and more – may be eligible for a grant of up to $15,000. This program has income limits based on household size but is eligible throughout the DMV and beyond.

Beyond the programs highlighted above, there are conventional loan products offering as little as 3% down, programs that offer reduced interest rates and mortgage insurance costs, and other programs that might be a better fit for your specific needs. Discover why working with the right team of experts who understand how to navigate the market is essential for a smooth and successful home-buying experience.

Eric Boutcher,
VP, Sales Manager, Sr. Loan Officer
NMLS ID: 1063065
Atlantic Coast Mortgage, NMLS: 643114
O: 202-347-0908 | M: 202-870-6343
Email Me

Notice: This is an advertisement and is not a commitment to lend. Contact a loan officer today to explore the financing options specific to each borrower.