08.17.08
New Tax Credit for Buying a Home in Colorado Springs
Any first-time homebuyer looking for monetary assistance for their home purchase may find themselves coming up empty handed. Many of the state (CHFA) or county-funded (El Paso County Bond) programs are out of money to give. I just helped a family sell their home (on Friday) and they were able to contribute to the 
Buyers’ down payment. Recent legislative decisions will end this. And, as of October 1, 2008 it doesn’t look like the homeowner is going to be allowed to provide this type of assistance either.
There may be a new alternative for first-time homebuyers, though. It is called the Housing and Economic Recovery Act of 2008. Here are some details about the program so you can decide if it’ll work for you.
1. The qualified home purchase must be made between April 8, 2008 and June 30, 2009.
2. The credit is maxxed out at 10% of the purchase price (not to exceed $7,500).
3. Can be used for the purchase of any single-family residence (condos/townhomes included) that will be a primary residence for the Buyer.
4. The credit reduces income tax liability for the year of the purchase. It’s claimed on the tax return for that tax year.
5. The program is available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).
6. The Recovery Act assists anyone who has not owned a principal residence in the 3 years previous to the purchase.
7. Here’s a biggie. The money can be recaptured. A portion (6.67 % of credit) is to be repaid each year for 15 years. If home sold before 15 years, then remainder of credit recaptured on sale.
As you can see, there are quite a few stipulations to working with this program. However, if a Buyer doesn’t have other options, this may be a blesssing. If you are considering utilizing the Housing and Economic Recovery Act of 2008, please contact me. I’d be happy to get you started.
Jerilynn Martinez said,
August 27, 2008 at 11:28 am
Angela,
Thank you for your information about financing changes and the tax rebate for homebuyers. I would like to clarify that CHFA is not out of first mortgage funding. Nor are we out of our 0% interest, deferred Second Mortgage which can be used for down payment and/or closing costs.
In June, CHFA closed on its largest bond issue ($350+ million) for first time homebuyer loan funds in its history, with another issue planned for later in 2008. CHFA experienced our largest production year in its history in 2007, and as demand for our products grows CHFA continues to be a viable source of funding, including down payment assistance, to first time homebuyer and non-first time buyers.
CHFA’s website has a wealth of information about our programs, our lender partners as well as updates on the new HERA legislation. That web address is http://www.chfainfo.com. I invite you and others to check it out.
Thank you again for your commitment to housing in Colorado.
Kind regards,
Jerilynn Martinez, CHFA legislative and media liaison