Saturday, February 28, 2009

First Time Home Buyers Update

According to Paul Bogenschutz of the Home Builders Ass. of Northern Ky, the Kentucky Housing Corp plans to advance the federal first-time home buyer tax credit (up to $8,000) to be used as down payment money at closing.

Folks, here in the Covington Arts District, we've already got a $6,000 forgivable loan that can be used at closing for down payment. If you buy here in the district that's up to $14,000 in down payment help that doesn't have to be repaid if you buy your house this year and live in it for 5 years. 

Plus, if you do a full rehab (which it appears at this point is "building a home" for the purposes of the credit) you can also qualify for home energy tax credits if you replace windows, doors, furnaces, insulate, and possibly even if you put a metal roof on your home. This is a credit of up to $1500 at 30% of the cost of the applicable project(s).

Remember, the first-time home buyer tax credit is a REFUNDABLE credit. If you don't owe taxes, they cut you a check. There are income limits, but they're generous. The CARD loan/grant has no income guidlines.

Many of these funds can be used for new construction like the Pulse Lofts or for a rehab project like this one in our first post about the financing incentives.

Add these credits and grants to the extremely low rates that are available (5.1% right now for a 30 year), and, well, this is a heck of a time to buy a house, lemme tell you. These credits could be gone at the end of the year, however, so now is the time to get a move on.

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