The Capital Park Team Blog - Closing Costs

Hill East

Yes, the name Hill East is as simple as it sounds: It’s the DC neighborhood to the east of Capitol Hill. For many years it has been categorized as an extension or offshoot of Capitol Hill and lacked its own identity, but all of that will be changing soon. There are plans in the works for a large-scale mixed-use development known as Reservation 13. 

At present, Hill East is distinguishable from Capitol Hill by its real estate trend of simple and honest brick rowhomes, many of which, depending on location, have front yards as well as back gardens. This housing stock is akin to that of Petworth, in its working-class roots and promotion of neighborliness. Because of the neighborhood's recent rise in prominence, Hill East property values have been…

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The Ten Most Commonly Asked Questions in Home Buying

1.  How much can I borrow to buy a home?
When determining how much you can borrow, lenders may consider your income level compared with debt, your employment status and your credit history. Talk to a lender about getting prequalified for a mortgage before you start shopping for your new home. This can make the whole experience go more smoothly.
Military veterans and first-time homebuyers may be eligible for special government-sponsored mortgage programs. Ask your lender what you might qualify for.

2.  How much money do I need to put down?
To get the best rate and terms for your loan, try to put down at least 20 percent of the purchase price. Although a lower down payment won’t necessarily disqualify you, there is a chance that a monthly private mortgage…

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New Development: Westlight Condos

Address: 1111 24th St NW
Type: Condos
No. of units: 71
Affordable Housing: N/A
Type of Unit: One-, Two-, Three- bedroom
Price: $1.2 M - $4.2 M
Status: In Sales
First Move-in: Sept. 2017
Developer: EastBanc., Inc.

Westlight Condo | West End

The Westlight Condos are located in prime real estate—centered in the West End of the city, near Georgetown, Dupont Circle and Downtown D.C.

The condos are designed by the architect Enrique Norten, with features by artist Ingo Maurer. Their signature is all over the building, from its cantilevered glass building façade to breathtaking sun-drenched views from floor to ceiling windows.

The 71 condos are part of a 10-story building that includes an expansive library and over 7,000 square feet of retail…

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How To Be A Standout Buyer

Buyers in DC's competitive real estate market will likely find themselves in a multiple offer scenario. It's a stress-inducing situation...you've finally found the perfect listing, and now lots of other buyers want it too! What's the best way forward? First off, it's important to understand how most multiple-offer-scenarios play out.

Often times, when the listing agent feels confident there will be more than one offer, they will set an offer deadline. The deadline gives potential buyers a chance to huddle with their agent and lender to make their best possible offer, which is oftentimes referred to as "highest and best" in the real estate industry. Writing a winner offer is simple...offer more than the asking price, all cash, with no contingencies,…

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What is Title Insurance?

An overview of title insurance when it comes to owning a home.

When you buy your home, you receive a deed, which shows that the seller transferred their legal ownership to you. Legal ownership is called the “title.” Title insurance protects you in case there is any legal trouble down the line.

Title insurance is crucial when it comes to completing your home purchase. It protects you and the lender from the possibility that your seller (or previous sellers) don’t have total ownership of the house and/or property. If they don’t, they may not be able to transfer full ownership over—but title insurance prevents that from happening.

A couple of questions to ask about title insurance include “is the seller pushing a specific title company?” or “who do…

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How Does Credit Affect Mortgage Opportunities?

One thing that ultimately influences your mortgage rate is your credit score.

For first time home buyers, many aspects of home buying can seem daunting. We’re here to explain how your credit affects what mortgage rate you may be given once you decide to buy a home.

One thing that ultimately influences your mortgage rate is your credit score. Basically, the easiest thing to remember is: the higher your credit score, the lower interest rate on your mortgage.

A high credit score not only guarantees a lower mortgage rate, but sometimes it depends on whether you can get a home loan at all. Buyers below a FICO score of 620 have a miniscule chance of securing a mortgage, so step one to getting a home loan and low mortgage rate is working on that credit…

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DC Open Doors Program

DC Open Doors Program offers first-time and repeat home buyers a Down Payment Assistance Loan that does not need to be paid back.

DC’s Housing Finance Agency, or the DCHFA, reconfigured its DC Bonds program called “DC Open Doors,” for new first time home buyer assistance, four years ago this summer. The program, which has given over $200 million in down payments for homes in the city, is now even more accessible. Those working in DC who want to live downtown but have trouble making the down payment can utilize this program.

The program and its funding are available to first time home buyers and repeat home buyers. The DC Open Doors Program is constructed around what’s called a “Down Payment Assistance Loan,” one that doesn’t have to be paid back.…

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First-Time Homebuyer Tax Benefit in DC

The District of Columbia Association of REALTORS®(DCAR) announced the First-Time Homebuyer Tax Benefit has been passed and funded by the DC Council. The First-Time Homebuyer Tax Benefit allows first time home buyers in DC to pay a .725% recordation tax on homes no more than $625,000 that earn less that 180% AMI beginning this October.

So what exactly does that mean?

First let’s talk about the recordation tax. Recordation tax is part of various closing costs and based on the purchase price. If the sale price is $399,999 or less than the DC transfer and recordation tax rate is 1.1%. Sales of $400,000 and above are taxed at the rate of 1.45%. For example, if you bought a $250,000 home in DC, the buyer and seller would each pay $2,750 in DC transfer…

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First-Time Home Buyer Tax Credit May Be Renewed for 1st Time in 4 Years

Are you in the market to buy a home in Washington, DC? You may have heard of some of the many programs, lending options, and tax benefits that exist in the market today. To name a few: DC Opens Doors, Loan Programs for Teachers, and the Down Payment Assistance Program. You may have even heard of first-time home buyer tax benefits in the past, but they have not been renewed or implemented for years.

As recently as 2011, there was a DC first-time home buyer tax credit in place that reduced the buyer's recordation tax by 50 percent. This credit saved many first-time home buyers thousands of dollars. There may be good news on the horizon for first-time buyers in DC. On October 6th, a few DC council members proposed a new first-time home buyer tax…

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Pro’s and Con’s of FHA Loans

Many buyers think that an FHA loan should only be used as a last resort. Indeed, more often than not conventional loans are the way to go over FHA (which stands for Federal Housing Administration) loans. However, if you’re only able to put 3% or 3.5% cash down on a property, an FHA loan could make more sense for you. Home prices in the DC area have skyrocketed in the last few years, and with that comes more difficulty on the part of buyers to put a greater percentage down on a property. What exactly are the pro’s and con’s of FHA loans? Well, that’s exactly what we’re here to tell you:

Pro’s:

1. The buyer only has to put down 3.5% of the total sales price on a property.

2. 100% of the down payment can be a gift from a family member, friend,…

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