Saturday, June 13, 2009

New Ways to use the $8,000 tax credit for your down payment in Ohio!!

OHFA is now changing the program to allow assistance help. How the program works is there will be 2 mortgages set up. 1 with the loan amount and the 2nd loan will be 3% of the loan amount not be due until August 2010! By August of 2010 you will have your $8,000 tax credit to pay this loan off. Now all the first time homebuyers will need is .5% of the purchase price (example: loan amount $100,000, .5% would be $500 down) $500 is typically what your earnest money deposit is! Now is the time to buy! Don’t miss your chance to own a home with this opportunity.

Here is how the program works:

Let OHFA help you with down payment and closing costs through the Homebuyer Tax Credit Advantage Program featuring no interest and no loan payments until August 2010. Eligible borrowers participating in the First-Time Homebuyer Program or Ohio Heroes Program can use the loan to greatly reduce the out-of-pocket expenses associated with buying a home.

If you qualify for one of OHFA’s home loan programs, you can choose to take advantage of the Homebuyer Tax Credit Advantage Program.

•OHFA will issue a loan, as a second mortgage, up to 3% of the purchase price of the home.
•You can use the loan to pay for the down payment, closing costs, or other prepaid expenses incurred prior to closing. Keep in mind that while the loan will greatly reduce your expenses, you may still be required to pay for some costs if they are not covered by the loan.
•If you take advantage of the loan, your second mortgage interest rate will be fixed at 1% higher than OHFA’s current mortgage rates and you will begin paying August 1, 2010.
•You may be eligible for a new federal First-Time Homebuyer Tax Credit of up to $8,000. You may claim the credit either on your 2008 federal tax return, due April 15, 2009, or on your 2009 tax return filed in 2010. More information about the First-Time Homebuyer Tax Credit is available from the IRS web site.
•Incentives are available if you choose to prepay the Homebuyer Tax Credit Advantage loan by June 30, 2010. Otherwise, your mortgage payment will increase slightly due to the added second mortgage loan payment.
Do I Qualify?
To qualify for the Homebuyer Tax Credit Advantage Program, you must meet all requirements for your OHFA homeownership loan program and close on the home by November 30, 2009. You may also want to claim the federal tax credit of up to $8,000 on either your 2008 federal tax return, due April 15, 2009, or on your 2009 tax return filed in 2010. Check requirements for the First-Time Homebuyer Program and Ohio Heroes Program.

In addition, you must either:

•Complete a free homebuyer education course offered by any HUD-approved housing counseling agency, or
•Use the streamlined OHFA homebuyer education program
Call Molly Hay for additional information: 614.581.2086

No comments:

Post a Comment