On November 6, President Obama signed into law legislation to extend the $8,000 homebuyer tax credit until April 30, 2010 and expand it to include higher income homebuyers. The credit was scheduled to expire November 30, 2009. The new law also creates a new $6,500 tax credit for existing homeowners who have lived in their home for at least five consecutive years out of the last eight, and who wish to purchase a different home as their primary residence. This credit is available for homes purchased after November 6, 2009 and expires April 30, 2010.

To help buyers that need down payment and closing cost assistance when purchasing a home with the tax credit, a number of HFAs are offering special short-term second loans to qualified buyers. These loans are available for little or no interest and may be repaid with the homebuyer tax credit refund.

Linked below are descriptions of HFA first-time homebuyer tax credit loan programs.




In addition, most states offer 2nd loans or grants to help first-time homebuyers purchase a home. These work much like the tax credit loan programs but the



loan term is longer. Information on these programs can be obtained from the websites of the State HFA’s. 







Colorado Housing and Finance Authority (www.chfainfo.com)


Kentucky Housing Corporation (www.kyhousing.org)


MaineHousing (www.mainehousing.org)


 MassHousing (www.masshousing.com


Missouri Housing Development Commission (www.mhdc.com)


Nebraska Investment Finance Authority (www.nifa.org)


New Jersey Housing and Mortgage Finance Agency (www.nj-hmfa.com)


New Mexico Mortgage Finance Authority (www.housingnm.org)


New York State Housing Finance Agency/State of New York Mortgage Agency (www.nyhomes.org)


 

Ohio Housing Finance Agency (www.ohiohome.org)


 Oklahoma Housing Finance Agency (http://ohfa.org)


Pennsylvania Housing Finance Agency (www.phfa.org)


South Dakota Housing Development Authority (www.sdhda.org)


Tennessee Housing Development Agency (www.thda.org)


  Texas Department of Housing and Community Affairs (TDHCA) (www.tdhca.state.tx.us)


Utah Housing Corporation (www.utahhousingcorp.org)


Virginia Housing Development Authority (www.vhda.com)


Related Links:

Form 5405 Homebuyer Tax Credit Revised December 2009

Related Instructions for Form 5405 Revised December 2009

FHA Publishes New First-Time Homebuyer Credit Advance Loan Mortgagee Letter

IRS PowerPoint Presentation on New Homebuyer Credit Rules

National Association of Home Builders First-Time Homebuyer Tax Credit Web Page

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