$8,000 GIFT FROM THE FEDS!

A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before April 30, 2010. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid. The tax credit is available for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.

The tax credit does not have to be repaid. It is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. - FederalHousingTaxCredit.com

$7,500 HELP FROM MICHIGAN?

For many low-to-moderate income homebuyers, including first time home buyers, saving money for a down payment can be challenging. In 2009, the Michigan State Housing Development Authority (MSHDA) was discussing a new Down Payment Assistance Program.

POTENTIAL PROGRAM HIGHLIGHTS:

Zero-interest, non-amortizing loan with no monthly payments.

Maximum assistance is $7,500.

Available with MSHDA's FHA, Rural Development or 97 percent Conventional first mortgage.

Funds may be used for down payment, closing costs, prepaid/escrow expenses and a home inspection performed by a licensed home inspector.

The loan is due upon sale or transfer of the property or if the first mortgage is refinanced or paid in full. - Michigan State Housing Development Authority

Contact us for a referral to a realtor or lender who may be able to help with these special programs.