Using The Tax Credit Towards Your Downpayment on an FHA Loan
Virginia is one of the 11 states where first time home buyers may use the credit towards their down payment. I am attaching an informative flyer that you may download which has been provided by the National Association of Realtors. This can be used in conjunction with the FHA/VHDA Financing.
On May 29, 2009, the U.S. Department of Housing and Urban Development (HUD) announced a program that allows borrowers to use the first-time home buyer tax credit for a down payment or closing costs on a FHA-insured mortgage. Since the announcement NAR has received many inquiries from our members regarding how this impacts first-time homebuyers in their state.
HOW TO USE THE CREDIT
Currently, 11 state housing finance agencies (HFAs) offer a product buyers can use that will effectively monetize the tax credit for down payment purposes. Generally, these programs offer tax credit advances with second liens on the home being purchased. The second lien may be "soft" (silent) or require monthly payments but may not result in cash back to the borrower and may not exceed the total amount needed for the down payment, closing costs, and prepaid expenses. The 11 states offering these programs are Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, Tennessee, and Virginia. Other states are developing programs so members are encouraged to regularly follow up with their respective HFA.
Contact Kim Darwaza so that she can put you in contact with a good lender that will go over the maximum income requirement for VHDA Loans.
Kim Darwaza, REALTOR®, GRI, ABR, CRS, CDPE
Graduate, REALTOR® Institute
Accredited Buyers Representative
Certified Residential Specialist
Certified Distressed Property Expert
NVAR Multi-Million Dollar Sales Club Member 2005, 2006, 2008
NVAR Residential Top Producer 2007
RE/MAX Allegiance
703-856-2254 Cell
1-866-315-9397 Fax
Twitter: kimdarwaza
kim@kimdarwaza.com
http://www.kimdarwaza.com