For Ascension Parish there are gift programs that provide cash for down payment and closing or eliminate mortgage interest compbined with low interest rates to help a first time homebuyer get into their home. Two of these are rural development financing (a federal program) and Louisiana state bond funding assistance which can provide up to 4.5% of the purchase price, depending on your salary. There are two programs, the Home program and the regular assistance. The home program has a lower interest rate and 4.5% assistance. The regular program has a higher interest rate and 4% assistance. In either of these programs, the seller can help with closing costs, giving the buyer an opportunity to purchase a home with very little cash out of pocket.
Many are wondering if the $8000 tax credit that passed earlier in 2009 can be claimed if one of these gift funding programs is ussed?
The answer is YES, it can. This credit is not related to how a first time home buyer purchases a home or what type of mortgage they use or if they pay cash. Once the home is closed, they become eligible for this additional $8000 tax credit.
Related questions answered in previous blogs:
1. What Is a 1st Time Homebuyer?
2. Do I have to wait until I file my taxes in 2010 to get the credit?
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