First-time home buyers tax credit?

Are you eligible for the 2008 2009 first time home buyers tax credit if you used a down payment assistance program and the loan is FHA?

My question is based on this: Now I do not fully understand what a MRB is or if it ties into FHA loans or Downpayment Assistance Programs.

13. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?

No. The tax credit cannot be combined with the MRB home buyer program.

2 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    Look through your paperwork. Is there a Mortgage Credit Certificate?

    These are programs were local governments do a bond program--they sell the bonds, take the money and lend it at LESS than the going interest rate to first time homebuyers. Since you are already getting financial help, you don't get another one.

    A down payment assistance program isn't the same thing. It's a technique of getting around the 3% down payment requirement to qualify for the loan. Your cost basis in the home is MINUS this downpayment when it didn't come out of your pocket. (Most of these programs have been shut down because the money came from the builder and the builder just raised the price to cover it. Leaving you with a higher sales price and probably higher property taxes.)

  • 4 years ago

    It does not count once you're taking the 1st Time Homebuyer credit. the quantity of the credit could be the comparable on the two of your 2008 or 2009 tax returns. it relatively is a Refundable credit so which you will get the entire volume no count what your tax criminal duty is. the quantity of the credit is 10% of the acquisition value of your place, as much as $8000. in case you acquire your place for better than $eighty,000, you will get the max credit $8000.

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