Home Buying in Bardstown>Question Details

Wendy Sue, Home Buyer in Boston, KY

I'm a single Mother and I was woundrering do you have to have perfict credit to qualify for the tax credit?

Asked by Wendy Sue, Boston, KY Tue Apr 28, 2009

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Your credit score or how you file has nothing to do with the First Time Buyers Credit as long as you meet guidelines. If for some reason you have something attached to your refund (back child support, back taxes, student loans) the IRS will use this money to pay off this debt first before they give you the remainder of the money (if there is any left)
1 vote Thank Flag Link Sat May 2, 2009
Michele is correct. To get a loan in this market you will need a 620 for an FHA with 3.5% down & 720 for any other kind of financing.
1 vote Thank Flag Link Tue Apr 28, 2009
Kentucky first time home buyer grants and loan programs – The Kentucky Housing Corporation (KHC) offers programs for first time home buyers.

The KHC offers home ownership education classes as well as low interest rate, 30 year home loans/mortgages through participating lenders. Many of the programs are offered to and non-first time buyers as well.

The KHC also offers downpayment and closing cost assistance to qualified buyers. The closing costs assistance ranges from $4,500 to $10,000, depending on the qualifications of the buyer(s).

To qualify for these programs, the KHC has buyer income limits as well as limits to the purchase price of the home.
0 votes Thank Flag Link Thu Dec 19, 2013
Home Buyer Tax Credit

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YardSignWebGraphicWhat is KHC's Home Buyer Tax Credit?

KHC's Home Buyer Tax Credit is available through Mortgage Credit Certificates (MCC), which reduce the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment. That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay. The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan. But an MCC gives you a tax credit of 25 percent (not to exceed $2,000). You can still deduct the remaining 75 percent interest on your income taxes. A tax credit is not the same as a tax deduction. A tax deduction reduces the portion of your income that is taxed, so you pay less. A tax credit is a direct, dollar for dollar reduction in the total tax you owe. The MCC is effective for the life of the loan as long as you live in the home. If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax.
MCC Brochure
Eligibility to apply

You may qualify for the program if:
You are purchasing your first home.
You have not owned a home in the last three years.
The home you wish to buy is located in an area of the state which is exempt from the first-time home buyer rule. (Your local lender can determine those “targeted areas.”)
Maximum home sales price is $243,000.
Maximum income limits:
1-2 person household : Up to $85,560
3-4 person household : Up to $99,820
You must meet lender, KHC, FHA, VA, RHS, Fannie Mae, and/or Freddie Mac standards for creditworthiness. You must occupy the property.
It cannot be used for business, commercial, or rental purposes.
Applicants need a sales contract with a legal description of the property, a $500 MCC fee, and copies of federal income tax returns for the past three years.
How to Apply?

Applications are accepted on a first-come, first-served basis by a statewide network of local lenders. MCCs are available with FHA, VA, RHS, Fannie Mae, and Freddie Mac Conventional 30-year mortgages at a fixed-rate. MCCs cannot be used with KHC’s Mortgage Revenue Bond program, but may be used with KHC’s Secondary Market Program. Your local lender will submit your loan application and notify you as to whether your application has been accepted.
With an MCC from KHC, you will get direct dollar-for-dollar reduction in your federal taxes worth 25 percent of the interest you pay on your mortgage each year. You can still claim the remaining 75 percent of the interest as a tax deduction.
0 votes Thank Flag Link Sat Aug 24, 2013
No you dont need perfect credit but you must be able to get a loan. There are several great programs here in Kenucky that can assist single parents, disabled, and those over age of 62 to purchase homes with interest rates as low as 1%. This program accepts applications in July. We are actually hosting a homebuyer seminar at the Nelson County Public Library in Bardstown Ky on Wed July 1, 2009 starting at 6:00pm. We will have representatives there to talk about these great programs that can be used along with Federal Tax Credit. It is a great opportunity to learn about new loan programs that offer down payment assistance, reduced payments and interest rates.
0 votes Thank Flag Link Tue Jun 23, 2009
Your credit score has nothing to do with the $8000 first time home buyer tax credit. But your credit score could effect your ability to buy a first home.

0 votes Thank Flag Link Tue Apr 28, 2009
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