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Homebuyer Tax Credit Advantage Program

Effective Date: March 30, 2009

The Homebuyer Tax Credit Advantage Program offers a second mortgage to borrowers who obtain a first mortgage through the OHFA First-Time Homebuyer Program. In order to encourage first-time homebuyers to enter the market in 2009, the program will allow OHFA first-time homebuyers to leverage the benefit of the federal first-time homebuyer tax credit for down payment and/or closing costs. The American Recovery and Reinvestment Act of 2009 amended and extended the first-time homebuyer credit to include purchases closing between January 1 through November 30, 2009. For qualified first-time homebuyers who purchase a home in 2009, the maximum credit is $8,000 and can be claimed on a buyer's 2008 or 2009 federal tax return.

• The loan may be up to three percent of the purchase price. No cash back may be issued to the borrower.

• Principle and interest payments are deferred until July 1, 2010 after which, loans will amortize over 15 years at an interest rate 1% above the first mortgage rate.

• The OHFA application fee will be $300 and can be paid by the buyer, seller or financed in the loan.

• There is an incentive for early repayment of the loan. If the loan is paid in full prior to July 1, 2010, OHFA will forgive $300 of principal.

• Lenders may charge a special processing fee of $75.

• All loans must be recorded as second mortgages using OHFA note and mortgage documents.

• Borrowers must have a minimum 600 credit score.

• Borrowers must complete homebuyer education through a HUD approved counseling agency or through OHFA's streamlined program.

For more information and details e-mail or call me today!

Dan