Tax Credit Advance

The new Housing Tax Credit Advance Loan Program. The program is not up and running yet, but we are finalizing the details and we should be ready to roll it out within the next few weeks (or so)!  In the meantime, there are things your clients can do right now to be eligible and ready once it is up and running.

As you are aware, the 2009 Economic Recovery and Revitalization Act included a “refundable” tax credit worth up to $8,000 for taxpayers who purchase their first home between January 1 and November 30, 2009.

In Washington, REALTORS have focused our efforts on the development of a Housing Tax Credit Advance Loan Program to make the equivalent of a first-time homebuyer’s tax credit (up to $8000) available to borrow for down payment through the Washington State Housing Finance Commission.

The Housing Tax Credit Advance Loan Program, the first of its kind in the nation, is being developed through a partnership that includes the Washington Realtors, Washington State Treasurer’s office, and Washington State Housing Finance Commission, which was authorized in the recently passed state budget. That budget must still be signed by the Governor.

Details of the program are still being refined, but here are the basics:

1. Attend a Free Homebuyer Education Class – Home buyers can attend a Washington State Housing Finance Commission Sponsored Home Buyer Education Seminar; this 5-hour seminar is a requirement for receiving a loan from the Commission.
2. Other Loans Are Available Now:  Look into the House Key Program for first mortgages for first-time home buyers; and, there are Second Mortgage Loans for Down Payment Assistance available through the Commission when using the House Key Program. There are down payment assistance programs for those with disabilities, for teachers, veterans and those who live in certain rural areas! There is even a conventional first mortgage loan available right now through the Express Loan Program for first-time home buyers that can be used in conjunction with the House Key Plus Down payment Assistance Program!
3. Refer them to a participating lender now: Have them meet with a House Key trained loan officer and determine if the client qualifies for a mortgage loan according to FHA, VA, Rural Housing Services (RHS), or conventional loan standards.

Information and help with all these services are available through the Washington State Housing Finance Commission’s Homeownership Division.

REALTORS can call Lisa DeBrock for more information at 206-287-4461. Or email Lisa at Lisa.DeBrock@wshfc.org

Thank you so much for contacting us at the Washington REALTORS.

We will be sure to let all of our members know in detail about the Housing Tax Credit Advance Loan Program as it progresses.

This entry was posted on Thursday, May 21st, 2009 at 7:11 pm and is filed under news.