Buyers in the nation’s capital get extra frosting on the homebuyer’s incentive cake. First-time buyers (liberally defined) get a federal tax credit of up to $5,000. That’s the same as having Uncle Sam kick $5,000 into your down payment. Even if you own a home somewhere else (including the D.C. suburbs), you can qualify for this sweet tax break if the house you buy is the first one you own in D.C [source]