Financing in Abington>Question Details

Anderson, Home Buyer in 11217

Is there a new mortgage regulation that can only maximize $5,000.00 out of the $8,000.00 tax credit for first time home buyers?

Asked by Anderson, 11217 Mon Jan 25, 2010

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There is a program in PA that will allow a qualified buyer to get up to $5,000 of the tax credit to use at the time of purchase. The buyer would then file for any allowable difference between that $5,000 and the maximum of $8,000 that is allowed. If you would like to discuss this further, please contact me at my office, 215-887-GOLD. Anne Rubin
1 vote Thank Flag Link Mon Jan 25, 2010
The Pennsylvania Housing Finance Agency, or PHFA, Tax Credit Advance Loan Program (TCA) allows PHFA borrowers to apply a portion of their 2010 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 First-Time Homebuyer Credit (IRS Form 5405). Due to limited funding, the program will be available to homebuyers on a first-come, first-served basis. Click the link below for more details.
1 vote Thank Flag Link Mon Jan 25, 2010
Hi Anderson,

I think the program you are referring to is a particular PHFA loan. With this program, HUD allows an advance of up to $5,000 of the credit (if you qualify for the credit) to be used at settlement. This program was oferred last year before the previous credit expired in November, but there was a very small window of opportunity to get it because the funds dried up so quickly. If you wish to take advantage, I suggest you don't delay. Feel free to call Mindy Washington, the lender in my office, for specific details. Her number is 215-591-5351.

Good luck!

Susan Meyers
Weichert Realtors
Fort Washington, PA 19034
215-646-1700 x121
215-692-3518
Web Reference: http://www.susanmeyers.net
1 vote Thank Flag Link Mon Jan 25, 2010
Hello,

There is a program offered from the Pennsylvania Housing and Finance Agency (PHFA) for up to
$5,000 (for first time buyers) to use towards the downpayment or closing costs. The Tax Credit Advance Loan (TCA) is for first, or second time buyers it doesn't matter, to use a portion of their stimulus Tax Credit
at the time of settlement. Restrictions apply so go to the website, http://www.phfa.org. The lender you choose
must be signed with PHFA to do this loan, give me a call for details!

Deborah Francis
ERA Alliance Real Estate
Office: 215-224-2100 ext. 119
Cell: 215-626-5027
1 vote Thank Flag Link Mon Jan 25, 2010
It's $8000 or 10% of the purchase price whichever is lower and youget the funds when you file your taxes, not at the closing. PHFA (which has higher than normal rates) used to offer a program where you can use the money as a down payment but they ran out of funds.
0 votes Thank Flag Link Thu Jan 28, 2010
Hi Deborah, Susan

Thanks. That's what I thought she was talking about. There are restrictions on it though.

Renee Porsia
Associate Broker
RE/MAX ACTION
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
http://www.reneeporsia.com
0 votes Thank Flag Link Mon Jan 25, 2010
Hello Anne,

Could you please let me know what program you are talking about that allows buyers to get up to $5,000 to use at the time of purchase and how that works?

I am very interested.

Thanks

Renee Porsia
Associate Broker
RE/MAX ACTION
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
http://www.reneeporsia.com
0 votes Thank Flag Link Mon Jan 25, 2010
You should check with your lender. Have you been pre- approved yet? There are many rules with lenders depending on your particular situation. Right now 10% is the maximum as stated below.
0 votes Thank Flag Link Mon Jan 25, 2010
No.

The first-time homebuyer tax credit is 10 percent of the purchase price of the home, up to a maximum of $8,000 for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns. The full credit is available for homes costing $80,000 or more.
0 votes Thank Flag Link Mon Jan 25, 2010
No. Not that I'm aware of. Ask your lender to cite whatever regulation or law is appropriate.

But keep in mind that the tax credit is 10% of the purchase price, up to a maximum of $8,000. So, for instance, if you qualified in all respects, but bought a property for $50,000, then your tax credit would be $5,000, not $8,000.

See http://bit.ly/HomeBuyerTaxCredit
0 votes Thank Flag Link Mon Jan 25, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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