Are Tax Credits for Homebuyers Still Available? Yesby Tim Manni
We received the following comment from our reader Courtney this morning:
Have you heard of any other government programs or tax credits for home buyers? I am sure there is something still out there, right?
While the federal homebuyer tax credit for both first-time and repeat buyers have expired, several states are offering their own incentives to promote and maintain homeownership.
California Offers $10,000 to Homebuyers
One example is California’s homebuyer tax credit of up to $10,000 for both first-time and repeat buyers. The reaction of homebuyers in California has been astounding. According to the San Jose Mercury News, the money allocated for the credit in 2009 was used up in only four weeks. Based on the current demand in California, experts are predicting the money allocated for 2010 will be used up in only two to three weeks.
Individual Programs Abound
Everyone from home builders, to realtors, to banks are crafting up their own home-spun incentives to get buyers in the door. The goal of these independent incentives is to mirror them as closely as possible to the federal credit:
[Coldwell Banker] is asking sellers to participate in a program that will give buyers 3 percent off the agreed-to sale price, up to a maximum of $8,000.
Homebuilders in Minooka, Ill. are teaming up with the village to offer a $10,000 refund to buyers who purchase a newly constructed home in the community by Dec. 31.
In the New York Tri-State area, developer Sterling Properties is offering a $9,000 refund off the purchase price of apartments in The Avenue at South Orange, a new development in New Jersey.
Don’t Forget About the NCSHA
The National Council of State Housing Agencies (NCSHA) is a national, nonprofit organization created by the nation’s state Housing Finance Agencies (HFAs) to assist them in increasing housing opportunities for lower income and underserved people through the financing, development and preservation of affordable housing.
Housing Finance Agencies can help you determine whether you qualify for any of a variety of programs, including the Low Income Housing Tax Credit, Mortgage Revenue Bonds (MRBs), and the HOME Investment Partnerships (HOME) Program.
Click here to view each state’s HFAs and their program information.
Help for Homeowners (and Homebuyers)
Do you live in one of the states with the worst housing markets in the country? The federal government is providing extra funding to ten states that have been hit especially hard by the housing downturn. While five states have yet to announce how they plan to allocate the added funds, so far, principal reductions, subsidized monthly payments for unemployed borrowers and down-payment assistance seems to be the recurring strategies for the states that have announced their spending plans.
Readers: We want to learn about any/all homebuying incentives that you hear about — don’t hesitate to share — leave us a comment.