$8000 Tax Credit as a Down Payment

The State of Washington is working out the kinks of an advance loan program to allow first time home buyers to use the $8000 tax credit as a down payment. Sounds like it will potentially help out a lot of people.

clipped from www.lilaccityrealestate.com Tax Credit Advance Loan Program Lack of down payment assistance is the only barrier to home ownership for 50% of qualified first-time home buyers. The 2009 Economic Recovery and Revitalization Act included a “refundable” tax credit worth up to 10% of the home purchase price with a maximum of $8,000 for taxpayers who purchase a home between January 1 and November 30, 2009. There is a demand from first-time home buyers – responsible people with jobs, good credit, and the ability to make the monthly mortgage payment. However, many of these potential home buyers still need down payment assistance and they can’t get the $8,000 until after the sale is closed. The goal of the Tax Credit Advance Loan Program is to make the equivalent of a first-time homebuyer’s tax credit (up to $8,000) available to borrow for down payment, and repay the loan quickly by filing an amended return so that the HFC can turn it around for more down payment assistance to other first-time home buyers.