South Philly Real Estate Blog

Tax Credit Advance Loan Program

Congress has enacted legislation providing a federal tax credit of up to $8,000 for first-time home buyers purchasing (and occupying in the case of custom construction) their principle residence between January 1 and November 30, 2009. This credit is available to single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000. A first-time home buyer is defined as a buyer (and his/her spouse) who has not owned a principal residence during the three-year period prior to the purchase.

 

For more information on the Federal First-time Homebuyer Tax Credit click here.

 

In Pennsylvania the Pennsylvania Housing finance Authority’s Tax Credit Advance Loan Program (TCA) allows Keystone Home Loan and Keystone Home Loan PLUS borrowers to apply a portion of their 2009 first-time homebuyer tax credit towards the purchase of their home. The program offers an advance in the form of a subordinate loan to those filing for the 2009 First-Time Homebuyer Credit (IRS Form 5405) on their 2009 tax returns. Due to limited funding, the program will be available to homebuyers on a first-come, first-served basis.

 

In New Jersey the First-Time Home Buyers Tax Credit Loan (“TCLP”) Program provides a loan to pay down payment and/or closing costs to Agency Home Buyer Program first-time home buyers who meet all of the requirements of the Home Buyer Program and who are eligible for

the credit as permitted by the federal law establishing the credit and the guidance provided by the IRS in the General Instructions that accompany IRS Form 5405 and who close on a home purchase between the start of the TCLP program and December 1, 2009. The loan will not exceed $5,000 ($4,000 in the case of married filing separately) and will be secured by a second mortgage. The borrower will pledge to apply the refunds received from the first-time home buyer tax credit toward the repayment of the TCLP loan.

 

For PA Program Eligibility and Details click here.

For NJ Program Eligibility and Details click here.

 

Realtors® Celebrate Fair Housing Month

 April marks the 41^st anniversary of the 1968 Fair Housing Act, which strives to ensure equal housing opportunity for all. Realtors^Ò  are dedicated to advancing fair housing laws and eliminating discrimination, and can give their buyer and seller clients a wealth of resources and information about their rights and responsibilities under the act.

Realtors^® are community builders who understand the importance of giving all Americans the opportunity to fulfill their homeownership dreams. With all the stress and excitement of the home buying process, the last thing a buyer should have to worry about is if they’re being treated fairly. Although we celebrate Fair Housing Month in April, for Realtors^®, every month is Fair Housing Month.

 

According to U.S. Census data, more than 75 percent of white households own their home, but only about 50 percent of African American and Hispanic households are homeowners. Minority buying power stands at over $1 trillion and minorities are projected to account for more than 50 percent of first-time buyers by 2010.

 

Realtors^® know that diverse neighborhoods and schools strengthen communities, and minority population growth is vital to sustaining housing markets. National Association of Realtors^® members have access to educational tools like the “At Home with Diversity” program. The course teaches Realtors^® about being sensitive to and aggressive in meeting the homeownership needs of a multicultural society. More than 25,000 Realtors^® have completed the program.

 

NAR also provides Realtors^® with funding for programs that support its Housing Opportunity Program, helping those who need greater access to quality, affordable homeownership and rental opportunities. This May, NAR will co-sponsor the HOPE Awards, which honors individuals and organizations who are working to increase minority homeownership. Award winners receive $10,000 and the opportunity to share their programs and expertise during a minority housing symposium at the Realtors^® Midyear Legislative Meetings & Trade Expo, May 11-16 in Washington, D.C.

 

People have a right to live wherever they can afford to live. For many families, homeownership is a stepping stone to prosperity and represents the American way of life. Fair housing means opening those doors for everyone in this country whose goal it is to own a home.

 

Courtesy of the National Association of REALTORS.