$8K Tax Credit Advance Loan for First Time Home Buyers!
The 2009 Stimulus package included a “refundable” tax credit worth up to $8,000 for taxpayers who purchase their first home between January 1 and November 30, 2009. While it is a great incentive for first-time buyers, the funds are not available until after the purchase when buyers file and receive their tax return.
The new Washington State “Housing Tax Credit Advance Loan Program” will now make the tax credit (up to $8000) available to borrow up front to use as a down payment! The program is not up and running yet, but the funds have been approved and it should go into effect in the next few weeks after Governor Gregoire signs the state budget.
Details of the program are still being refined, but here are the basics:
- The State makes a deposit with a selected FDIC insured financial institution.
- The financial institution then provides the Washington State Housing Finance Commission with a line of credit up to $8000 to qualified first-time home buyers for a down payment.
- The advance loan is paid once the IRS delivers the home buyer’s refund.
Here’s what you can do RIGHT NOW to be eligible and ready once the program is available:
First of all, in order to take advantage of this program, you need to work with a participating lender. There are only a handful of WSHFC loan officers in the Spokane area. They can tell you if you qualify for a mortgage loan under this program. Call or email us and we will connect you with an approved lender!
Also, you will need to attend an approved Homebuyer Education Class. This free 5-hour seminar is a requirement for receiving a loan from the Washington State Housing Commission. Contact us for a list of upcoming classes.
Once you know how much you qualify for, it’s time to look for a home! That’s where we come in. There are lots of excellent homes on the market, but we are seeing buyer activity heat up. We can set you up to receive automatic emails for new listings with your specific criteria and show them to you as soon as they hit the market! Remember, to take advantage of this program, the home you purchase has to close escrow by the end of November. After you find the right home and make an offer, the sale could take 45 to 60 days to close, so the time to start looking at homes is right now. Let’s get started! Call Darla at 509-270-0782 or LeRoy at 509-990-5150 or visit us online at http://www.TheRealEstateAces.com.
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The latest update on the "Cash at Closing" program is that on June 2, the U.S. Department of the Treasury notified the Washington State Treasurer that the IRS will not make the required administrative change because federal law requires tax credit payments to be sent directly to the taxpayer, not third parties such as the Housing Finance Commission. The letter further states Congress had considered but rejected a proposed mechanism for advance payment of the credit, "instead choosing to use ordinary refund procedures to implement the credit."
However, downpayment-assistance programs are still available to first-time home buyers - call for info!