First-Time Homebuyer $8,000 Tax Credit Now Available As A Downpayment Advance
The U.S. Department of Housing and Urban Development (HUD) announced their program to allow First-Time Homebuyers which is defined as someone who has not owned their primary home within the past three years to receive the $8,000 tax credit as a downpayment advance.
Originally the HUD secretary had announced this program on May 12th at the National Association of Realtors Housing Summit, but as quickly as they announced the program, they turned around and rescinded the program. Now the program is finalized. Apparently, they had not thought through the whole program before announcing it and needed more time to figure out the details.
Under this program the FHA requirement of a 3.5% downpayment will still be required and this advance cannot be used for that. It however can be used to increase the downpayment, pay points to lower the interest rate and for just about any other purpose.
This is a refundable tax credit which means that even if you have little or no tax liability you can still get the credit. For example, if you do your taxes and owe $4,000 in taxes but have had $4,500 withheld from your pay checks, then you would get a refund of $500. However, with the $8,000 tax credit you could get $8,500 instead, and as long as you own the home for at least three years you never have to pay any of it back thanks to the generosity of the American tax payer.
One final point is that this program is temporary, so to get your $8,000 tax credit you must have your closing before December 1, 2009. Now is the time to buy your home if you want to get your $8,000 tax credit. Getting money for free is not something you can do often, but you must do this now or you may lose out.
If you would like more information regarding this program or to buy a Tampa area home please call me at 813-469-3163 or email me at Blog@SweetHomeTampaBlog.com
You can read more about the program by opening this document.
Originally the HUD secretary had announced this program on May 12th at the National Association of Realtors Housing Summit, but as quickly as they announced the program, they turned around and rescinded the program. Now the program is finalized. Apparently, they had not thought through the whole program before announcing it and needed more time to figure out the details.
Under this program the FHA requirement of a 3.5% downpayment will still be required and this advance cannot be used for that. It however can be used to increase the downpayment, pay points to lower the interest rate and for just about any other purpose.
This is a refundable tax credit which means that even if you have little or no tax liability you can still get the credit. For example, if you do your taxes and owe $4,000 in taxes but have had $4,500 withheld from your pay checks, then you would get a refund of $500. However, with the $8,000 tax credit you could get $8,500 instead, and as long as you own the home for at least three years you never have to pay any of it back thanks to the generosity of the American tax payer.
One final point is that this program is temporary, so to get your $8,000 tax credit you must have your closing before December 1, 2009. Now is the time to buy your home if you want to get your $8,000 tax credit. Getting money for free is not something you can do often, but you must do this now or you may lose out.
If you would like more information regarding this program or to buy a Tampa area home please call me at 813-469-3163 or email me at Blog@SweetHomeTampaBlog.com
You can read more about the program by opening this document.
Posted by Jeff Launiere at 5/30/2009 7:19 AM 
Categories: First-Time Homebuyer Tax Credit,Tampa Real Estate
Tags: First-Time Homebuyer Tax Credit Tampa Real Estate
Categories: First-Time Homebuyer Tax Credit,Tampa Real Estate
Tags: First-Time Homebuyer Tax Credit Tampa Real Estate
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