Thursday, July 9, 2009

Florida's $8K Tax Credit Downpayment Program

The program utilizing the Government's $8K tax credit as a downpayment became effective July 1. Unfortunately, there is no money as they are relying on current home sales' Doc Stamp taxes to fund the necessary reserves.

The Florida Homebuyer Opportunity Program’s (FLHOP) $8,000 tax credit is a bridge loan (short-term loan) administered by the state's local State Housing Initiatives Partnership (SHIP) program.

Florida's lawmakers are offering this loan to first-time homebuyers eligible for the federal government’s $8,000 tax credit utilizing current programs. But unfortunately, the rules for the SHIP and FLHOP programs differ and this is making for some issues. Because of such, some of the state's local SHIP offices may not be ready come the first week of Aug., the likely kick off date due to collections.

The legislation does not stipulate an education requirement as there are currently with other SHIP programs, but the primary lender may require such.

In some instances these monies can be used as part of the required downpayment, but "those who access through any other FHA-approved lender must (as with any standard FHA loan), provide the 3.5% themselves."

At this point, the best thing for you to do is to contact your local SHIP office.

Till next time....Marc It Sold!

No comments: