If you live anywhere in Texas and are wondering how to monetize the first time homebuyer tax credit, we have good news — it is now possible!

There are two different programs in Texas to help people qualify for these short term tax credit bridge loans. Both of the programs can help you monetize the Texas 8000 tax credit – and each program is slightly different.

The 90-Day Down Payment Assistance Program (DPAP) is popular and easy to use.  The 90 day down payment assistance program is available in Texas through November 30, 2009 when the federal tax credit ends under current federal legislation.  There is some discussion of extending the program, but currently the tax credit is scheduled to end on November 30 of this year.

Highlights about the Texas 90-Day Down Payment Assistance Program

• It is only available to first time home buyers.It is available to all participating Texas mortgage lenders – regardless of mortgage financing program (FHA, VA, Conventional, etc.)
• You can get up to 5% of the first mortgage amount up to a maximum of $7,000 for down payment and/or closing costs.You will be required to complete a class that is TDHCA approved about buying your first home
• You must prove eligibility to receive the federal first time homebuyer tax credit
• No interest is charged for 90 days
• Failure to repay the down payment assistance loan in full within 90 days will result in monthly payments of principal and interest for two (2) years with an interest rate of 10%. If a homebuyer borrows $7,000 they would have a second mortgage payment of approximately $323 per month for two years until the loan is paid in full.
• Income limits for single taxpayers of $75,000 and $150,000 for married taxpayers filing a joint return apply just exactly as they apply for the federal tax credit.

For people who currently live in Texas and are first time home buyers, there is currently a 8000 tax credit from the Federal Government that is available for Texas first time home buyers.

For people living in Texas who are considering buying a new home and are searching for information on the 8000 tax credit, here are some important resources to help you learn more.

Just a few of the best resources that we have found about the new 8000 tax credit for Texas new home buyers include a site set up that answers many questions about the tax credit for new home buyers and we also found a short video.

Federal Housing Tax Credit.

For those who prefer to see answers in a video, here is a great one that answers quite a few questions:

Some of the top questions that we have heard from people are also below — if you have a different question after seeing all of these, let us know!

1. Who is eligible to claim the tax credit?
2. What is the definition of a first-time home buyer?
3. How is the amount of the tax credit determined?
4. Are there any income limits for claiming the tax credit?
5. What is “modified adjusted gross income”?
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
7. Can you give me an example of how the partial tax credit is determined?
8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
9. How do I claim the tax credit? Do I need to complete a form or application?
10. What types of homes will qualify for the tax credit?
11. I read that the tax credit is “refundable.” What does that mean?
12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
16. I am not a U.S. citizen. Can I claim the tax credit?
17. Is a tax credit the same as a tax deduction?
18. I bought a home in 2008. Do I qualify for this credit?
19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

The Texas mortgage team has officially launched! We will work hard to bring you the latest Texas mortgage related information such as information about:

• Mortgage rates
• Lenders
• Loan officers
• FHA mortgage loans
• VA mortgage loans
• HomePath mortgages
• Reverse mortgages
• Government regulation
• Texas mortgage news

and much, much more.

Please contact us directly with any questions that you may have about mortgages and we will work hard to provide the right answers!