After much debate, the final Stimulus Plan contains an $8,000 tax credit to first time homebuyers who purchase a home between now and December 1, 2009.
Apart from the stimulus plan, there is also a $10,000 grant for middle income first time homebuyers currently available. These funds can be used to help with the down payment or closing costs.
That's an $18,000 gift from our government. I hope you spread the news - it won't last forever!
Any questions anyone?
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How does the grant program work?
ReplyDeleteThe Federal Home Loan Bank in Atlanta manages a fund budgeted by the Federal Government to assist first time homebuyers.
ReplyDeleteLocal banks must sign up to participate in the program, only a few do.
The program is aimed at helping middle income families. The grant is up to $10,000 for qualified borrowers. This year's salary range has not been announced yet, I'm expecting it in March when the funds are due to be released. Last years income ranged from $52,900 for a single person to $87,650 for a 6 person family.
To take advantage of the program select a participating lender and be pre-approved for the regular mortgage. Then, write a contract on a home and the lender will submit your application for the grant funds. Full approval usually takes a few weeks. The funds are applied directly to the settlement statement, you don't receive a check.
This is a grant, not a loan. That is that as long as you live in your home at least 5 years, it does not have to be repaid. If you sell your home before then, payback will be prorated.
I know several good lenders that handle the program if you are interested. Contact me at: NancyMyRealtor@gmail.com.