I have talked to several first time buyers who have good credit and want to take advantage of the $8,000 stimulus credit but just don't have the money available for the closing costs. This sounds like a fantastic way to boost our service as a real estate professional by informing them of this program.
GLORIA LAUGHTON ALLSTON, SRES BURGDORFF ERA
NJHMFA Offers Cash Advance for First-time Buyers
The New Jersey Housing Mortgage Finance Agency (NJHMFA) is offering cash payments of up to $5,000 for qualified first-time home buyers to help defray closing costs or satisfy down payment requirements and help new buyers to get into the housing market.
The loan, offered as part of NJHMFA's "Prefund" program, would function like a cash advance against the $8,000 tax credit being offered to first-time buyers who purchase a home between April 8 and December 1 of this year. In its simplest terms, purchasers would be provided with the payment as a loan and would be required to repay the advance when they receive their federal tax credit.
The cash advance is available to first-time home buyers who:
Arrange their financing through the NJHMFA. (Obtain a list of participating lenders by calling (800) NJ HOUSE)
Are qualified for the tax credit offered as a part of the federal stimulus program
Pledge to apply the proceeds of their tax credit to repay the cash
For full details regarding the NJHMFA's First-Time Home Buyers Tax Credit Loan (TCLP) visit the HMFA page on the state Legislature's website.