MassHousing Offers Program Allowing First Time Buyers to Use $8,000 Tax Credit as part of their down payment or to pay closing costs, rather than wait until they file their 2009 taxes!
The American Recovery and Reinvestment Act of 2009 economic stimulus package contains specific provisions designed to help revitalize the housing market. The plan is designed to help mitigate foreclosures and encourage new lending. The act also includes a provision for a tax credit for first time home buyers. MassHousing has now approved a plan that allows eligible home buyers to apply for a tax credit loan through an approved lender.
How It Works:
Homebuyers who are using a MassHousing first mortgage loan to purchase their first home apply for the Tax Credit Loan program through their lender.
The Tax Credit Loan is used to cover closing costs or as part of the downpayment.
In 2010, the homebuyer claims the $8,000 tax credit on their 2009 federal tax return.
The homebuyer then repays the MassHousing tax credit loan:
1) No interest is charged if the Tax Credit Loan is repaid by June 1, 2010
2) Otherwise, the Tax Credit Loan is amortized over the next 10 years, at the same interest rate as
the first mortgage.
For Information on Eligibility, Participating Lenders, Income Limits and Purchase Price Guidelines Contact Christopher Terry at 508.646.4777 X105 or simply click here!
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