The Missouri Housing Development Commission has released a new program that will maximize the First Time Home Buyer Tax Credit if you hurry!
As most of you have heard, the First Time Home Buyer Tax Credit is currently scheduled to run through June 30, 2009. You still have time! (Link)
In addition, first time home buyers need to know this new news release. MHDC is working to get you the credit at close - not when filing your taxes! Here is how it will work...
*The following information is taken from www.mhdc.com. Please visit www.mhdc.com for additional information.*
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First-time homebuyers receive a tax credit worth 10% of their home purchase, up to $7,500. The credit is claimed on the homebuyer’s federal tax returns. The credit is refundable, which means that the homebuyer receives a refund for the amount of the credit minus any federal tax liability. The credit is essentially an interest-free loan from the federal government and must be repaid through an increase in federal income taxes over a period of 15 years. |
How the MHDC Tax Credit Advance Loan Program Works:
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MHDC makes a second mortgage to the homebuyer at the time of closing worth up to 6% of the home purchase price or a maximum of $6,750, which is used to cover downpayment and closing costs. The tax credit advance loan is paired with MHDC financing for the first mortgage in the form of a safe 30 year, fixed rate mortgage. The homebuyer then files for the federal tax credit and uses the credit refund to pay off the MHDC tax credit advance loan. If the tax credit advance loan is paid off by the designated deadline (no later than June, 2010), the homeowner pays no interest other than a modest servicing fee. If the tax credit advance loan is not paid in full by the deadline, principal and interest payments to repay the loan over 10 years begin automatically. |
MHDC loan programs are available for households with incomes up to $85,500.
The federal tax credit and the MHDC tax credit advance loan program are both currently set to expire June 30, 2009.
The Quality Hill Square is excited to announce the opportunity to own a piece of the transforming downtown at an affordable price. For $79,500 you can own your own home in the premier Quality Hill neighborhood with a full appliance package, washer and dryer, and a parking space. Just to make the purchase of you condominium better we are also offering a $3,000 dollar grant for the two bedrooms and a $5,000 for the one bedrooms. A $7,500 tax credit is also available to first time home buyers purchasing their first home. This tax credit is available on the purchase of any property and can be thought of as an interest free loan for 15 years. This credit comes from the IRS and will be paid back by $500 every year for 15 years.
Posted by: Quality Hill Square Condominiums | February 03, 2009 at 02:21 PM