Home Buyer Incentives
Georgia is leading the way in providing generous Buyer incentives on top of the current $8,000 Federal Housing Tax Credit for First-Time Home Buyers.
We are now in early June and the pattern has been that these things morph constantly, so please call me or check the links provided for the most up-to-date information. One important change that has been "rumored" for the last two weeks is that the Federal Housing Tax Credit will be allowed as a down-payment assistance program for FHA Borrowers. (Currently the $8,000 can only be used as a credit against your Income Tax. The new change would allow you to use the $8,000 as part of your down payment.) I've seen information announcing this and then rescinding it and then saying it is in the works. So.....stay tuned!
Here is a basic overview of the three programs currently available for Georgia residents:
Federal Housing Tax Credit -- This is a program for first-time home buyers or those who have not owned a home in the last three years. Any home that would be your primary residence qualifies for this Tax Credit, which is equal to 10% of the home's purchase price up to $8,000. The home does not have to be foreclosed upon or in what we call "Short Sale" status. There is an income limit, which is $75,000 for a single taxpayer and $150,000 for a married couple, filing jointly. At this time the $8,000 would be a direct credit against your income on your tax return. As I said above, there are strong indications that HUD will be bringing out an amendment to this program which will allow Buyers to use this $8,000 as part of their down-payment. Typically these are treated as a second loan which would be forgiven over a period of time, as long as you remained in the home as your primary residence. Click on the link above for more detailed information.
Georgia Dream NSP Program -- The GA Dream NSP Program was created to encourage the purchase of foreclosed homes. This program is not just for first-time Buyers and provides $14,000 to eligible borrowers purchasing foreclosed properties in eligible areas. (The counties immediately surrounding Atlanta all qualify.) An "eligible" borrower is one who has attended the mandatory 8-hour class and has a qualifying income of no more than 120% of the area median income. In the metro Atlanta area, that is $59,800 for a single person, $68,350 for a two-person household, $76,900 for a three-person household, etc. You can find the schedule of qualifying income for larger households here -- check under FAQ#5. Realtors who want to present an offer on a foreclosed home with a Buyer using the GA Dream NSP Program must also take classes, so be sure your Realtor is qualified...or call me! The really neat thing about this program is that if you are a first-time home buyer you can qualify for this program AND still use the $8,000 Federal Housing Tax Credit -- a direct savings to you of up to $22,000!
2009 Statewide Homebuyer Tax Credit - This program was passed in the last few weeks as an incentive to get the current inventory of unsold homes moving. House Bill 261 provides up to $1,800 which can be applied towards your 2009 taxes. The credit must be taken over three years, so if there is an $1,800 credit, you would take $600 per year for three years. There are very few limitations on this tax credit -- the biggest being that the home purchased must have been on the market prior to May 11, 2009 and is either foreclosed or in a "Short Sale" status. There are no income limitations -- anyone can use this program and unlike the other two programs, you can use this tax credit against investment property or vacation property. You can also use it in tandem with the Federal Housing Tax Credit or the GA Dream NSP Program, thereby increasing your potential savings to $24,000!
What are you waiting for? All these programs expire in less than six months! With current mortgage interest rates below 5%, there has literally never been a better time to buy a home in Georgia!
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