The Florida Legislature approved a budget in which they are providing $30.1M to downpayment assistance programs allowing people to use the Federal $8K tax credit for a downpayment. For 5 months as of July 1, those qualifying for the First Time Homebuyers Tax Credit, will be able to apply for downpayment assistance through their local county housing authority to be able to utilize the $8K tax credit for a downpayment at closing. In return, this amount will be repaid when the borrower receives their tax refund.
This is surely a win-win situation for all. It will definitely help many of those who are limited in purchasing a home because of the lack of an adequate downpayment. Hopefully, this will also further spur on what I'm seeing as an improving economy and especially consumer confidence.
All of the details have not been worked out, but I would suggest that you contact your local housing authority as quickly as possible. Theoretically, this will help over 3000 first time homebuyers. Now to the federal guidelines for the First-Time Homebuyer Tax Credit:
- To qualify, the home must be your principal residence (therefore, neither vacation homes nor rental properties)
- purchased prior to December 9, 2009.
- To be considered a first-time homebuyer, you may not have owned a home for the three years prior to the date you closed on this home.
- The home must cost at least $80,000 to receive the full tax credit, otherwise the credit will be prorated to 10% of the purchase price.
- To qualify for the full tax credit, your Adjusted Gross Income (according to your 1040 Form Tax Return) must be below $75K for single individuals and $150K for married couples. Reduced amounts are available above those limits, but are phased out at $95K for singles & $170K for couples.
- There is only one restriction and that is that you can not sell the home for three years otherwise you will have to repay the tax credit.
Happy House Hunting!!
Till next time....Marc It Sold!
For information on Seminole and Orange County real estate and Seminole and Orange County homes for sale in addition to Seminole and Orange County relocation contact Marc Grossman, your Seminole and Orange County Realtor @ 407-463-1034. Additional information is available for Seminole County real estate, Orange County real estate, West Volusia County and South Lake County.
To learn more about Marc and the services he has to offer, visit his website.
Marc Grossman, GRI - http://www.OrlandoHomes-4u.com/ - 407-463-1034
Marc donates 10% of his net proceeds to Hospice of the Comforter.