$8,000 Tax credit to be applied at closing through VHDA

Big News! VHDA will loan $8,000 tax credit at closing for qualified first time buyers
Here are the details... Call me at (804) 432-2688 to sign up..

VHDA to Launch Homebuyer Tax Credit PlusThe Virginia Housing Development Authority (VHDA) is launching a new program to allow first time homebuyers to use the Federal First Time Homebuyer Tax Credit to finance downpayment and closing costs on a VHDA mortgage.This loan has a built in second mortgage with zero interest and no payments for the first 12 months.

Eligible buyers have the following three payment options:1. Pay off the second mortgage with the Federal First Time Homebuyer Tax Credit. 2. Pay off the second mortgage over 29 years - and save the tax credit to pay for future emergencies, make home improvements, or pay off/pay down existing debt.3. Make principal payments on the second mortgage before the repayment period begins; this will reduce the required monthly payments for the remaining 29 years on the second mortgage.

The maximum loan amount for the first mortgage is the maximum FHA mortgage, and the maximum loan amount for the second mortgage is up to 5% of the sales price (no cash back). VHDA does not guarantee borrowers' eligibility for the Federal First Time Homebuyer Tax Credit. Borrowers can file an amended tax return after closing, and should consult a tax advisor or the IRS for complete eligibility criteria.

Information is available at http://www.irs.gov/.If borrowers are not eligible for the First Time Homebuyer Tax Credit, or the tax refund (if any) is not enough to repay the First Time Homebuyer Tax Credit plus loan, borrowers are still obligated to repay the second mortgage, plus all applicable interest.For more information, click here or call 877-VHDA-123.

The release of VHDA's program follows HUD's May 12 announcement that FHA approved lenders are permitted to "monetize" the Federal First Time Homebuyer Tax Credit through short-term bridge loans.HUD's program DOES NOT allow a buyer to use a conventional lender to monetize the tax credit to reach the 3.5% downpayment, although they CAN use it for closing costs and prepaids.

The only way a homebuyer can use the tax credit for downpayment (to reach the FHA 3.5%) is if the buyer uses an FHA-approved non-profit or instrumentality of government. For more information, click here to read HUD's mortgagee letter.\

Call Kerry Riley at (804)432-2688 for more details and pre-qualification.