NAR Creates Flyer Using the First-Time Home Buyer Tax Credit with FHA Loans

NAR has received many inquiries from our members regarding how first-time homebuyers can use the tax credit with Federal Housing Administration (FHA) loans. NAR created a flyer to help members understand how the tax credit can be used in their respective state. The flyer identifies how to use the tax credit in one of the 11 states where housing finance agencies offer a product that monetizes the tax credit for FHA loans. It also provides some guidance for all other states where such programs do not currently exist.

NAR's FHA and the First Time Homebuyer Tax Credit Flyer
In Depth: 2009 First-Time Home Buyer Tax Credit

VHDA Launches Homebuyer Tax Credit Plus Loan Program

The Virginia Housing Development Authority has designed a new loan program - Homebuyer Tax Credit plus, to help prospective homebuyers meet the challenge of down payment assistance.

"In addition to providing a first mortgage with an affordable 30-year fixed rate, our Homebuyer Tax Credit plus loan program offers a built-in second mortgage that allows borrowers to receive up to five percent of the home's sales price, which can help cover down payment and closing costs", said VHDA Executive Director Susan F. Dewey. 

The second mortgage offers no payments and 0% interest during the first year.  This feature gives borrowers the flexibility to choose from three payment plans for the second mortgage.

Homebuyer Tax Credit plus Program Details

Time Limit: Loan must close no later than November 30, 2009.

Minimum Credit Score: Minimum of 620

Required Borrowers Funds: Borrowers must have a minimum of 1% of the sales price verified as their own funds to be contributed toward the transaction or have available as reserves.

In order to qualify for any VHDA loan product, including Homebuyer Tax Credit plus, individuals must take a free VHDA homeownership education class.  For more information about VHDA's Tax Credit Plus loan program please visit www.vhda.com.