Here in the Austin and Highland Lakes areas of Travis, Burnet, Hays, Llano, Blanco and Hays counties, you may be able to take advantage of the First Time Homebuyer Tax Credit as a downpayment. There are many reasonably priced homes in our area and plenty of bargains, so it's a great time to buy!
Thinking of buying a home and using the $8,000 Federal Tax Credit? There is a new program to help use this $8,000 tax credit as a downpayment. Call us at Paragon Property Group for more information.
The Texas Department of Housing and Community Affairs (TDHCA) has announced two new downpayment assistance programs that allow you to take advantage of a short term loan prior to filing and receiving the First Time Homebuyer Tax Credit. The program is outlined below.
90 Day Down Payment Assistance Program
5% of the first lien mortgage amount up to a maximum of $7,000 for down payment and/or closing costs.
Program is only available in onjunction with first lien mortgage loans originated by a participating lender.
0% interest for 90 days.
Failure to repay within 90 days results in a monthly payment of principal & interest for 2 years with an interest rate of 10% This translates into a second lien note of $7,000 which is about $323/month.
Income limit for single taxpayers is $75000 and $150,000 for married taxpayers filing a joint return.
Mortgage Advantage Program
5% of the first lien mortgage amount up to a maximum of $6,000 for a down payment and/or closing costs.
The tax credit is equal to 10% of the home's purchases price up to a a maximum of $8000.
Homebuyers must meet the First Time Homebuyer or Mortgage Credit (MCC) Program guidelines.
0% interest for 120 days.
Failure to repay the down payment assistance loan in full within 120 days will resul in monthly payments of principal and interest for 5 years with an interest rate of 7%. Using this scenario, a homebuyer borrowing the maximum of $6,000 would have a second lien note of approximately $119/month.
Applicable income limits for the Texas First Time Homebuyer or Texas Mortgage Credit Programs.
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Both of the programs require the homebuyer to complete a pre-purchase homebuyer education course. Homebuyers must be eligible to claim the federal first time homebuyer tax credit (can not have owned a home in the last 3 years). Homebuyers must complete IRS Form 5405 and file an amended 2008 IRS federal tax return.
All purchases msut close by December 1, 2009.
Funds area available on a first come, first served basis.
The tax credit must be repaid to the IRS if the borrower sells or moved from the home within 3 years of purchase.
There is a $250 administrative fee for either program.
Tax refunds are generally processed within 8-12 weeks. TDHCA recommends that each taxpayer consult with their tax advisor on how to maximize their benefits.
For current available program funds please visit the Available Funds page.
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