First Time Home Buyers - $8,000 Tax Credit

Current Home-Owners - $6,500 Tax Credit

Don't let time run out...You must have a accepted contract on a home by the expiration date of April-30'th in order to take advantage of these programs. Give me a call today and lets find your new home.

SORRY - The programs have expired....Please continue to utilize my real estate website to locate your new dream home.

First Time Home Buyers - $8,000 Tax Credit & Current Homeowners - $6,500 Tax Credit - Learn more about these great programs and how I can help in getting you into your first home or your next home as an current homeowner, in searching all Nashville Real Estate Listings for Sale to locate your home in the Middle Tennessee area. Don't let time run out...You must have a accepted contract on a home by the expiration date of April-30'th in order to take advantage of these programs. Give me a call today and lets find your new home.

First, there are two components to the tax credit; one for first time home buyers and the second for current homeowners looking to buy a new home.  Below are the specifics for each of these two groups.

First Time Buyers Qualifications - Credit equal to 10 percent of the home's purchase price, up to $8,000

1. Those who haven't owned property in the last three years
2. Those with income up to $225,000 for couples or $125,000 for individuals
3. Must be at least 18 years of age to claim credit
4. Tax credit does not have to be repaid provided you live in the new home for a minimum of three years

1. Those who have owned and lived in their principal residence for at least five consecutive years during the past eight years
2. Those with income up to $225,000 for couples or $125,000 for individuals
3. Must be at least 18 years of age to claim credit
4. Purchase price must be $800,000 or less
5. Tax credit does not have to be repaid provided you live in the new home for a minimum of three years

1. Have until April 30, 2010, to enter into a contract for a home purchase
2. Have until June 30, 2010, to close on the purchase

New THDA Stimulus Second Mortgage Program

Earlier this year, Congress passed the American Recovery and Reinvestment Tax Act of 2009 (“2009 Tax Act”). In division B, Title I, Section 1006, there is a provision for a First Time Homebuyer Tax Credit (Form 5405) up to $8,000 or 10% of the purchase price. This act provides for an exception for principal residences purchased between January 1, 2009, and November 30, 2009, which enables a first time homebuyer to receive the tax credit with no repayment required if the homebuyer occupies the property for 3 years. The 2009 Tax Act also provides for use of this credit with loans purchased with proceeds of tax-exempt mortgage revenue bonds. Therefore, this credit can now be used with THDA’s mortgage programs.

THDA is implementing a new second mortgage program, THDA Stimulus Loan Program, for down payment and closing cost assistance. This program will complement THDA’s existing Homeownership Choices incorporating the tax credit. In order to be eligible for the second mortgage program, THDA MUST be providing funding for the first mortgage through the Great Rate or Great Advantage programs for the borrower(s) to purchase the home. Both the first and second mortgage must close on or before November 30, 2009. The November 30, 2009, date also applies to new construction. The new home must be complete and the loan closed on or before November 30, 2009.

• Eligible Borrower: Homebuyer obtaining THDA first mortgage Great Rate or Great Advantage loans and who is otherwise eligible for the First Time Homebuyer Credit.
• Maximum Household Income: THDA Homeownership Choices limits apply.
• Maximum Loan Amount: 3.5% of Purchase Price
• Interest Rate: 0% deferred until June 1, 2010, 1% above corresponding first mortgage rate if amortized.
• Loan Term: After initial deferral period, the loan will fully amortize over 10 years, beginning July 1, 2010.
• The Stimulus Loan Program is only available on FHA loans.
• Underwriting Criteria: Borrowers must have 620 minimum credit score. Must include amortizing second mortgage payment in total housing expense ratio and back end ratio cannot exceed 45%. Manual underwriting is not permitted.
• Pre-Payment: The second mortgage loan is due in full upon first mortgage payoff, assumption, or refinance. No pre-payment penalty.
• Allowable Fees: Normal and customary second mortgage fees.
• Closing Documents: Second Mortgage Note and Deed of Trust must close in the name of THDA. Title Policy must insure first and second mortgage.
• Homebuyer Education: Required prior to closing on first mortgage loan.
• Servicing: Servicer will service combined payments. Under this program, both the first and second mortgage must be serviced by U.S. Bank.

THDA is not a direct lender. For more information on this mortgage program, please contact me to find a participating lender, or if you have any questions or need additional information from THDA, please contact:

Anita Slaven by email or at 615-289-4141 to learn more about these great Government Stimulus programs and how I can help you get into your new home.  

Homebuyers Education - First time home buyers, take advantage of this free course and learn everything about the home buying process in the pursuit of purchasing your new home.