Use your Tax Credit at Closing in Idaho to help buy your next home!

The American Recovery and Reinvestment Act of 2009 provided a federal income tax credit for first-time homebuyers of 10% of the sales price, up to a maximum of $8,000. This tax credit is available to qualified home buyers who purchase a home by December 1, 2009. In order to help buyers monetize this tax credit for down payment and closing costs when they purchase a home, I know of a great new strategy for qualified borrowers that are looking here in Idaho! We still have a few legal hoops to jump through; however essentially, a subordinate loan will be offered to qualified borrowers of up to $7,000, not to exceed 100% CLTV at 3.0% interest and with a due date of July 1, 2010. The Tax Credit 2nd loan is expected to be paid off from the borrowers tax refund obtained through the application of the federal tax credit. Borrower qualifications are; 1) the borrower is a first time homebuyer, 2) a FICO score of no less than 640, and a total debt ratio of no more than 45% is required, 3) a completed certification from the home buyer and a qualified tax preparer that he/she expects a tax refund of at least the amount of the loan, and 4) the home buyer qualifies for an special loan. First time homebuyers with credit scores of 700+ will not be required to produce a certification.