As part of the Massachusetts Recovery Plan, Governor Deval Patrick today announced July 14, 2009 a first-time home buyer tax credit loan program through MassHousing that will allow first-time home buyers to borrow up to $8,000 in advance of their federal tax credit for homes purchased with a MassHousing loan before December 1, 2009.
The loan will allow Massachusetts home buyers to use the $8,000 tax credit from the federal Housing and Economic Recovery Act (HERA) of 2008 as a funding source at the time of closing to help purchase the home (i.e., for down payment and/or closing costs). Under HERA, the maximum available credit is $8,000 and is claimed when home buyers file their 2009 federal tax return.
Applicants must meet certain qualifications, including, (1) applicants must be first-time home buyers using a MassHousing mortgage through a MassHousing-approved lender; (2) home buyers must use the home as a principal residence for a minimum of three years (the tax credit loan cannot be used for investor properties); and (3) home buyers must purchase a one, two, three or four-family home from a seller unrelated to the buyer by November 30, 2009.
Home buyers who take advantage of the program will have the principal and interest payments on the tax credit loan deferred from the time of closing until the loan due date of June 1, 2010. If the loan is not repaid in full by June 1, 2010, the loan will be amortized for 10 years at the same interest rate as the borrower's first mortgage loan.
I only have one question. Why wasn't this program launched three or four months ago? There's only about three months left to find a home and still have enough time to close before December 1, 2009.
Read The Press Release About The Home Buyer Tax Credit Loan
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