Look beyond the $8,000 Tax Credit
People are scrambling to close on a home purchase before this program is due to expire in December.
Reports indicate that it has had a positive impact on home sales and is certainly better than not having it
for those taking advantage of record low interest rates and home prices, but not everyone needs to
panic.
If your income doesn’t exceed certain limits there are legitimate and more desirable options available,
but they're not always well publicized. They are HUD approved and typically administered through
governmental agencies at the city, county and state level. Georgia Department of Community Affairs is
our state's housing finance agency, but look at the local level as well. If you’re not in Georgia then
Google “Housing Finance Agency and (your state)”. In fact, many programs can be layered, creating
significantly more than $8,000- sometimes tens of $1,000s towards your downpayment! Some are
conditional grants that are forgiven after living in the home for 5-10-15 years. Those are typically 0%
interest and no monthly payments. Same for those that require repayment, but they also carry no
monthly payments until either you sell, refinance or convert the home to rental property.
So what's the catch? One, eligibility is determined by a combination of factors. Income based on
household size cannot exceed preset limits that vary from program to program. Where's the property?
Certain occupations qualify for enhanced benefits: educators, protectors, healthcare professionals.
Special circumstances: disabilities, energy efficient, transit oriented developments. Homebuyer
education through approved providers is required, but a wise use of time for first-time homebuyers.
It takes a little more effort, but well worth it, as you can see. Always ask your REALTOR® to recommend
a lender who is familiar AND is approved to participate in these down payment assistance programs. Not
every real estate professional chooses to take the time to search the overwhelming array of options.
REALTORS® and lenders work on commission so it's an understandable business decision.
Here's a new service developed to make it easy for professionals across the housing industry to promote
awareness of and access to downpayment assistance for qualified homebuyers. It’s available in Metro
Atlanta and will begin deployment across the largest 25 MSAs later this year. Learn more at: Down
Payment ResourceSM.
Happy house hunting!