West Broward Real Estate Watch

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Florida is Set to help with Down Payments!

Florida is Set to help with Down Payments!

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The state is looking to help with the Down Payments assistance. Which helps you with the purchase of your First Home. How much better can this get. So now instead of having to wait for the tax credit, you can use it as a Down Payment.

So with an FHA loan on a $250,000 you need 3.5%, that means you need $8750. So if you get the $8,000 then you are looking at bringing $750.00, plus your closing cost.

So what the government is trying to do, is lend you the $8,000. You still file it on your tax return for next year. Then when you get the return you payback the state. So you are not using your out of pocket money. Makes sense to me.

This article is out of the Sun-Sentinel.

“Here in Florida, rather than qualified buyers waiting to get the tax credit on the tail end of the process, in the form of a credit after they have filed the tax returns, it will allow them to get it upfront and let them use it for down-payment assistance and fees,” said David Hart, vice president of legislative and government affairs for the Florida Home Builders Association. He estimated that about five states are taking a similar approach.

The state’s program takes effect Wednesday, though the money isn’t expected to be available until later in July or August. The funds are being distributed through local government and nonprofit agencies that already provide down-payment help through the State Housing Initiatives Partnership, known as SHIP. Qualified homebuyers are entitled to $8,000 or 10percent of the property’s purchase price, whichever is less.

18 months to repay

Buyers who receive a down payment must file for the tax credit on their federal tax return next year and then repay the agency that lent them the assistance, according to the program, which was proposed by state Sen. Mike Fasano, R-New Port Richey. The program gives buyers who qualify and get funds 18 months in which to repay the state, which allows them plenty of time to realize the benefits of the tax credit, part of the federal government’s massive stimulus package, the American Recovery and Reinvestment Act of 2009.

To receive the state’s down-payment assistance, the buyer must close on a property by the end of November. Housing agencies are still working out the details of how to distribute the funds, and state officials caution that four or five months is a relatively short time in which to qualify, find a home, obtain a mortgage, close on the property — and use the money. Qualified buyers who do not take advantage of the state program may still take the federal tax credit, which is currently set to expire in December.

Jeannette Neerpat
9000 Sheridan Street
Pembroke Pines, Fl 33024
www.Neerpat.com

Would you like a Free Market Analysis? Visit www.Neerpat.com or call 954-993-4104.

Comment balloon 7 commentsJeannette Neerpat • June 30 2009 08:17AM

Comments

Thanks for sharing. I am leaving today, Pensacola FLA. I will pass this on to my buyers referral agent as well.

Posted by Frank Rubi, FrankRubiRealEstate.com (Frank Rubi Real Estate, LLC) about 11 years ago

I have been trying to find which agency's are going to do this through the state, is it county SHIP programs? Or someone else in the state? I knew about it but cant find anyone actually doing it.

Posted by Heather the Realtor Orlando, Lake Mary, First Time Home Buyers, Bank Owned Homes (LemonTree Realty) about 11 years ago

I should read the full article :)

Posted by Heather the Realtor Orlando, Lake Mary, First Time Home Buyers, Bank Owned Homes (LemonTree Realty) about 11 years ago

Heather I would contact your local city hall. They can direct you to who is doing it.

Posted by Jeannette Neerpat, e-Pro Coral Springs/Parkland Real Estate (CondoDomain.com) about 11 years ago

Frank You are welcome!

Posted by Jeannette Neerpat, e-Pro Coral Springs/Parkland Real Estate (CondoDomain.com) about 11 years ago

Hey pretty lady, good to see you!   I know your local Coral Springs consumers are going to be thrilled to hear this. 

Posted by Kris Wales, Real Estate Blog & Homes for Sale search site, Macomb County MI (Keller Williams Realty - Lakeside Market Center) about 11 years ago

Now this is a good idea, they aren't giving the buyers the money they are lending it to them and that is what will actually help them buy a home without spending tax payers money to do it. Now, I do understand that it is a loan on a the money being given to them from the federal government, but that is another issue.

Todd Clark - www.LivingBeaverton.com

Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) almost 11 years ago

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