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July 13th, 2009 8:21 AM by David W. Welch
ATTENTION: First time home buyers in Florida. The state of Florida has come up with a plan to make the first time home buyer tax credit available at closing. My understanding is that not every lender is participating in this program, so check with your lender to see if they do before you write an offer. You must qualify for the credit, and spouses must both qualify as first time buyers to qualify for the credit. It is all or none, even if you file separately. I don't know about other arrangements, such as partners, siblings, etc. that may be buying together. Contact your tax preparer or CPA for special situations like that. Also, keep in mind the credit is 10% of the purchase price up to $8,000. If you purchase a $60,000 home, the maximum credit you can get is $6,000. There are also limitations based upon your income, so check with your tax preparer or CPA to find out if this effects you.
There are some other considerations with receiving the credit up front. You can use it toward your down payment or closing costs. If you are gettin FHA financing, you will still have to put 3.5% of your own money into the deal. This up front money does not take the place of this requirement for FHA. I am not sure how conventional financing is treating it, so check with your lender. The best way to use this up front money may be to pay your closing costs, so you do not need the seller to pay them. This may allow you to negotiate a lower purchase price. It is a terrific program that the state of Florida is offering, and I applaud our state leaders for thinking outside the box. Keep in mind that the clock is ticking, and the countdown to the end of the tax credit has already begun.
Orlando Real Estate, David Welch Real Estate Optimist