Utah Housing Corporation launches program to monetize home-buyer tax credit
Home buyers who use a Utah Housing Corporation loan can now use the first-time home buyer tax credit to help with their down payment and closing costs through a new monetization program called Equity Now. Under the program, home buyers will take out a first and second mortgage, which can be up to 6 percent of the first mortgage amount. Because the first-time home buyer tax credit funds are not available before a home purchase, the second mortgage will help pay for down payment and closing costs the buyer likely would have paid for with the credit.
After closing, qualified buyers will file an amended 2008 tax return to receive the tax credit. For buyers who put the full tax credit amount toward their second mortgage (up to six months after closing), Utah Housing Corporation will credit $100 to the second mortgage. For many borrowers, the tax credit will provide near-instant equity by substantially lowering or even eliminating the second mortgage balance.
To learn more about the program and eligibility requirements, visit www.UtahHousingCorp.org or talk to a UHC participating lender.
Besim Kuduzovic "Yours Real Estate Samurai" - loyalty, devotion, integrity & honor to death
Harris Real Estate University Certified Short Sale Expert
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