Serving the Greater Sandpoint and Coeur d'Alene Areas of North Idaho
First time homebuyer tax credit
Really Good News For First-Time Homebuyers!
One of the lenders I work with wrote this great article explaining the stimulus first time homebuyer tax credit advance. Remember, the first time home buyer means you haven’t owned a home in the last 3 years. Time is running out since you must close on your new home by November 30, 2009… so call your real estate agent right away. If you have anymore questions after reading this, please get in touch with us.
“IHFA’s Down Payment Assistance Tax Credit Advance
The American Recovery and Reinvestment Act of 2009 provided a federal income tax credit for first-time homebuyers of 10% of the sales price, up to a maximum of $8,000. This tax credit is available to qualified home buyers who purchase a home by December 1, 2009. In order to help buyers monetize this tax credit for down payment and closing costs when they purchase a home, Idaho Housing and Finance Association (IHFA), through its IdaMortgage lending program, is offering a special short-term loan to qualified buyers.
In conjunction with an IdaMortgage loan, a subordinate loan will be offered to qualified borrowers of up to $7,000, at 3.0% interest and with a due date of July 1, 2010. The loan is expected to be paid off from the borrowers tax refund obtained through the application of the federal tax credit. Borrower qualifications are; 1) the borrower is a first time homebuyer, 2) a FICO score of no less than 640, and a total debt ratio of no more than 45% is required, 3) a completed certification from the home buyer and a qualified tax preparer that he/she expects a tax refund of at least the amount of the loan, and 4) the home buyer qualifies for an IdaMortgage loan. First time homebuyers with credit scores of 700+ will not be required to produce a certification.
Also we continue to offer IdaMortgage’s, Good Credit Rewards program that helps qualifying borrowers purchase their home. This 2nd mortgage program is available for down payment and closing costs. Here is a list of Good Credit Reward Qualifications: Homebuyers with less than 140% of area median income can now qualify for IdaMortgage’s 30-year fixed rate down payment and closing costs assistance second mortgage program. The down payment assistance loan must be combined with an IdaMortgage product. The second mortgage will be offered at 1 to 2% above IdaMortgage’s standard interest rate”. Deborah Kishbaugh, Mountain West Bank