Ok there have been rumors, I have posted blogs and had to retract those blogs. I have spoken to local and state agencies as well as the Government agency on the national level that is handling the First Time Home Buyer tax credit and have the skinny.
The program is called Florida Home Buyer Opportunity Program. Phew, what a name, but y
es if you are a qualifying first time home buyer you will be able to use your $8000 tax credit as your down payment. However the rule is it's up to $8000 or 10% of the homes purchase price. IE: you buy a $75000 home you only get $7,500. The other rule is these funds will have to be repaid once you close on the home so it's a short term loan with no interest from the government.
So here is how it will work. Ex: You qualify for a home loan for $150,000, but dont have funds saved for the 3.5% down payment or $5250. You will utilize county SHIP programs to get a down payment loan of $8000 to satisfy your down payment requirement. 30-45 days later you close on the home and can then amend your tax return or wait until you file your 2009 return. Once you have done that you will have to take the $8000 and repay the local SHIP office.
The bill goes into effect tomorrow July 1. However the state agencies have not yet pushed out the funds to the local agencies with policies and procedures so the ability to use your $8000 tax credit to purchase your first home probably wont happen until August or September sometime.
If you are looking for more information on purchasing a home around the Lake Mary area as a first time home buyer contact me at 407-810-6304 (text or call) or twitter me at LakeMaryRealtor or email me a Heather@HeatherTheRealtor.com
Heather Joubran, GRI, NRBA, CLHMS, CDPE
RE/MAX Central Realty
www.HeatherTheRealtor.com (407) 810-6304
Specializing in First Time Home Buyers, Short Sales, Bank Owned Real Estate, REO & Foreclosure Properties
Servicing Real Estate Needs in: Lake Mary, Longwood, Winter Springs, Sanford, Altamonte Springs, Oviedo, Orlando, Downtown Orlando, Thornton Park, College Park, Winter Park, Maitland, Windermere, UCF, Lake Nona, Baldwin Park, Apopka, Ocoee & Winter Garden
Featured @ Club Chaos
Heather- The last that I had heard, the funds could be used for the down payment ONLY after the Buyer/Borrower had put in (or family had put in) the 3.5% down payment. Or, that the $8K could be used for any down payment over and above the 3.5% down and/or closing costs. But, that was a few days ago. It'll be interesting to continue to learn about what the govt is doing and how everything will be structured. Thanks for the update! Happy selling!
Hi Lisa see that's the problem there is misinformation out there. Your statement is correct from and FHA stand point with a regular lender. However they can use the funds going through state/county agencies. They are the only one able to give the monetized credit. The State is getting $30 million dollars to fund peoples $8000 tax credit upfront.
Only 5 states are doing this and Florida is one of them.
Thank you C Tann-Star for the feature
You are very welcome. :-)
Heather, you are right there is sooooooo much misinformation out there. A day doesn't go by that I am not contacted by a consumer wanting to know the answer to this and the land contract folks wanting to claim the tax credit. Which is allowed under MI law but not sure about other states. I have emailed the MAR legal opinion out so many times.
Missy- I agree because agents or lenders dont know about something so they say it isnt possible. I contacted the state and local governments and got to the source. But like you said it's specific to the states.