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.
