CLOSE IT! House of the Week: A Home for the Holidays

The busy holidays are lurking around the corner. You may be considering an upgrade to a bigger home to entertain guests. If so, this stunning renovated-manor located within the community of 16th Street Heights, Washington D.C., may be the perfect fit to host family. The property has 6,300 square feet spanning over four levels with seven bedrooms, and six plus spa-like bathrooms. You will not have to worry about your in-laws invading your space either, because this residence comes with an in-law suite that has a separate entrance for privacy. The property also has a picture-perfect layout, from the front porch through an opened floor plan that flows with wood floors, recess lighting, and an elegant, yet modern kitchen that opens to a back deck. It comes with a finished basement and a two-car garage as well. The house is listed at $1,599,999.   

Assuming a homebuyer puts down 20 percent, their cash-to-close would be $360,852 and monthly mortgage payments would be approximately $4,780. However, for a complete picture of what your cash-to-close figures would be, including seller’s net proceeds from the sale and such, view the Close It! Web version or download the free Close It! iOS app

Feel free to tell your agent that you want to use Federal Title & Escrow Company for settlement and save up to $750 on closing costs by ordering services online. Always remember, it’s your choice in selecting a settlement company when it’s time to close. Learn more here.  

CLOSE IT! House of the Week: A High-Rise Available in Chinatown

Looking for a high-rise pad to make into a man or woman cave in the District? Well look no further because we have found the perfect condo at The Lafayette at Penn Quarter which lists for $465,000. This one-bedroom, one-bathroom spans over 700 square feet with granite kitchen counter tops and panoramic views from your bedroom balcony. You're also super close to the National Mall should you want to go for a jog or a bike ride while the sun is rising or setting overlooking historic views. Don’t forget, as of October 1, 2017, you could qualify for the DC First-Time Homebuyer Recordation Tax Reduction and Federal Title & Escrow Company will help you submit your application!   

Assuming a homebuyer puts down 20 percent, their cash-to-close would be $106,695 and monthly mortgage payments would be approximately $1,358. However, for a complete picture of what your cash-to-close figures would be, including seller’s net proceeds from the sale and such, view the Close It! Web version or download the free Close It! iOS app

Feel free to tell your real estate agent that you want to use Federal Title & Escrow Company for settlement and save up to $750 on closing costs by ordering services online. Always remember, it’s your choice in selecting a settlement company when it’s time to close. 

CLOSE IT! House of the Week: A family home located in the residences at Adam's Row

View this stunning townhome in Northeast, D.C., which lists for $575,000. The detached townhome has four bedrooms and three in a half bathrooms perfect for a family of four or five. It spans over 1,786 square feet and has four levels of living space to include a large master suite with a balcony, three additional spacious bedrooms perfect for children, modernized bathrooms, and a beautiful kitchen to enjoy Sunday family dinners. Plus a basement!

Assuming a homebuyer puts down five percent, their cash- to-close would be $45,148.02 and monthly mortgage payments would be approximately $2,348.95. However, for a complete picture of what your cash-to-close figures would be, including seller’s net proceeds from the sale and such, view the Close It! Web version or download the free Close It! iOS app

Feel free to tell your real estate agent that you want to use Federal Title & Escrow Company for settlement and save up to $750 on closing costs by ordering services online. Always remember, it’s your choice in selecting a settlement company when it’s time to close. 

DC First-Time Homebuyer Defined

A “first-time District homebuyer” is defined as an individual purchaser who has never owned eligible property as the individual’s principal residence.  D.C. Official Code § 42-1101(16).  The term also includes an individual who has divorced or separated and who, by a written settlement agreement or court order, did not obtain an ownership interest in a principal residence that had previously been jointly owned.  In order for a deed to qualify for the reduced rate, each grantee named in the deed must be a first-time District homebuyer.

 

How to qualify for DC Homestead Deduction

Real estate agents and homebuyers often ask us about DC Homestead Deduction, a program that offers tax relief to District homeowners. Who qualifies and what are the benefits? 

As a complimentary service, Federal Title will complete and file the application as part of the closing services we provide.

Read the latest news on the DC Homestead Deduction.

Who Qualifies? 

  • An owner of a residential (1-5 units) property who occupies the property as a principal residence.
  • Must be a resident of the District of Columbia. Proof of residence may include obtaining a DC driver’s license, registering to vote, registering a vehicle, and filing of DC tax returns.
  • Generally, must be a US Citizen. Some G-4 visa holders may qualify as residents by providing a letter from their international organization employer.

View More Information About Qualifying Here

What are the specific benefits?

There are two main benefits to obtaining the Homestead Deduction. First, for the purpose of computing your yearly tax liability, it will reduce your real property’s assessed value by $72,450. At a tax rate of $0.85 per $100 of assessed value, that’s a annual savings of $615.82. Second, you are entitled to an assessment cap such that your property may not be taxed on more than a 10% increase in the property’s assessed value each year.

When does the Homestead Deduction take effect?

If a properly completed and approved application is filed from October 1 to March 31, the property will receive the Homestead Deduction benefit for the entire tax year (and for all tax years in the future). If a properly completed and approved application is filed from April 1 to September 30, the property will receive one-half of the benefit reflected on the second-half tax bill (and full deductions for all tax years in the future).

When should I apply for the benefit?

You should apply at the time of your closing or shortly thereafter. Federal Title can help you complete your application at the time of closing and, as a complimentary service, file the application on your behalf.

What if I have a Homestead Deduction on another property?

You cannot maintain a Homestead Deduction on a non-owner occupied property. If you no longer occupy a property that currently receives the Homestead Deduction benefit, you must notify the agency when eligibility ceases. View the Cancellation of Homestead Benefit form.

Information deemed reliable but not guaranteed. | Updated 31 August 2017
Our blog contains general information only, not intended to be relied upon as, nor a substitute for, specific professional advice. Rate tables and figures that appear on our blog are deemed reliable but not guaranteed. For current rates & policies, refer to our Quick Quote and Consumer Guide. We accept no responsibility for loss occasioned to any purpose acting on or refraining from action as a result of any material on our blog.