$8000 Tax Credit Now Can Used As Downpayment

[Brandon Hoffman]

I've got several emails so I'm just going to post the reply here:

A little history on the tax credit:
The tax credit has change 4 times. It was originally 7500 that had to be repaid, then 8k given but after closing, then 8k that can be a down payment, then back to 8k to be given after closing. HUD changed it originally so it could be a dp and a week later IRS overturned HUD's decision because of some technical tax issues.

To possibly qualify for the tax credit a 1 person household needs an income under 90k or a 2 household income up to I think 170k, not owned a home in the last 3 years, and close before Dec. 1 2009.

In addition there is other money available for those who haven't owned in the previous 3 years:
$5000 state housing grant that can be used as down payment that is forgiven at 20% per year over 5 years (so it's completely forgiven after 5 years)
$5000 county grant that is similar to state housing grant and is also completely forgivable at 20% per year over 5 years
$10,000 FBA 5 to 1 matching grant program that is forgiven just like the other 2 and is used as a down payment.

So potentially you could get up to $20,000 given as a downpayment that is completely forgiven and another $8000 tax credit you get back after closing. If you want to talk to a lender that offers these and see how much we can get you let me know. And yes, we're all jealous of you so take it will you can.

[chris_zell]

I'm trying to find info on the FBA grant, but I'm not sure what FBS stands for ;-) Any info? Thanks!

Chris

[Brandon Hoffman]

$10,000 Federal Grant Program Back for 2008! Get Money for Closing Costs anywhere in Maryland « Thoughts about Real Estate

It's from 2008 but it talks about the loan. The best way to get the guidelines is to have a lender that offers the program email them to you. Pretty straightforward, for every dollar the buyer puts down they match it with 5 up 10k. So buyer puts down $500 they get back $2500 in grants, 1k=5k, 2k=10k