Good afternoon all! We are currently finishing up with the State Legislature and should be finished by the end of April. One of the interesting bills that has come up is House Bill 645, which is a portion of it is very interesting to first time homebuyers!
As we all know, in the Federal Stimulus package, the President has given first time homebuyers a tax credit for up to $8,000 when they purchase a home until November of this year. First time home buyers won't be able to see that money until they file their taxes in 2010.
Here in Montana, HB645 is allowing borrowers to utilize up to $5,000 of their $8,000 tax credit for the purpose of buying a new home in the form of down payment and/or closing costs. Money is supposed to be set aside through the State's Housing Division. A short term loan is given to the borrowers in order to get into their home. When borrowers file their taxes in 2010, they then have to pay back that money that was borrowed from the State of Montana.
More to come on this interesting way to utilize the $8,000 tax credit.
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