First - Time Tampa, FL Home Buyers Save on Mortgages

Buying a home is expensive. It is particularly expensive in the initial stages, when down payments, closing costs, insurance, and taxes bombard the prospective homeowner.

The Federal Housing Administration (FHA) has a new program that will help first-time Tampa, FL home buyers (and others across the nation) save on mortgages. The program, called the First-Time Home buyer Tax Credit, offers up to $8,000 as an up-front tax credit to qualified first-time home buyers. The government hopes this money will help jump-start home purchases nationwide. Unlike previous home buyer tax credits, this 2009 credit does not have to be repaid.

FHA Tax Credit Eligibility Requirements

The program aims to help over $100,000 first-time home buyers across the nation. There are several eligibility requirements, however.

-The applicant must be a first-time home buyer, meaning that he or she has not owned a primary residence in the past three years.
- The home buyer must be able to make a minimum 3.5% down payment out of their own pocket.
- The lender must be approved by the FHA (most are).
- The qualified lender must offer a type of loan called a bridge loan.
- The new home must be purchased between January 1, 2009 and December 1, 2009.
- The home must be used as the borrower’s primary residence.
- Single taxpayers with a modified gross income over $95,000 ($170,000 for married couples) are ineligible.
- Once you purchase the home, you must remain in the home for at least three years; otherwise, you may have to repay the tax credit.

How Does the FHA Tax Credit Work?
Through the new FHA program, qualified first-time Tampa, FL home buyers can get up-front cash by applying for a short-term bridge loan. The home buyer will use the bridge loan to borrow against their tax credit, and then repay the loan with their tax refund.

Each borrower receives a tax credit based on the price of their new home. The tax credit total amount is 10% of the home’s purchase price; the maximum allotted credit is $8,000.

How Borrowers Can Use the FHA Tax Credit
First-time Tampa, FL home buyers can opt to use the mortgage tax credit in several ways. They can use the money to pay for closing costs, or to obtain a lower interest rate. Borrowers may also use the credit to make a larger down payment (more than the 3.5% requirement) to lower their principal balance, thus ensuring a lower monthly mortgage payment.

How the Credit Helps First-Time Tampa, FL Home Buyers
This new program helps qualified first-time Tampa, FL home buyers in many ways. It reduces the up-front costs of buying a home, whether the borrower uses the credit towards closing costs or as an additional down payment. The more a homeowner puts down on their home, the less they will have to pay in the long run. The program aims to help thousands of families, both in Tampa and across the nation, afford their first home.

What If I Can’t Afford the Down Payment?
If you cannot afford to make the required 3.5% down payment to qualify for the FHA tax credit, there are lenders who can help. Contact the Florida Housing Finance Corporation or any local or nonprofit lender and ask if you can receive down payment assistance. You may also wish to inquire about Florida’s new Home Buyer Opportunity Program, which has budgeted over $30 million to help first-time home buyers purchase a home by meeting the required down payment.

If you think you may be eligible to receive the first-time home buyer FHA tax credit, speak with your local Tampa, FL mortgage lender or financial advisor to learn more about how this program can help you.

Tampa, FL Mortgage
Tampa, FL Mortgage