VHDA DELIVERS... How to use the $8,000 home buyer tax credit for your down payment and closing costs.

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VHDA DELIVERS... How to use the $8,000 home buyer tax credit for your down payment and closing costs.
By Scott Rogers • July 14, 2009 Filed In: buying, opportunity
There has been talk for some time about using the $8,000 home buyer tax credit as a down payment or for closing costs, but the details have been few and far between. How, however, VHDA has created a specific program for this purpose, which makes it quite a bit easier... Instead of waiting until you file your taxes next year, you can receive the $8,000 tax credit at closing if you are obtaining your mortgage through the VHDA program. The $8,000 becomes a second mortgage with no interest and no payments for 12 months. Thus, the $8,000 loan costs you nothing, and stretches the loan of the money through the time when you'll get the tax credit. Providing even more flexibility, when you do get your $8,000 tax credit, you can either: Pay off the $8,000 second mortgage that helped with your closing costs and down payment. Keep the $8,000 tax credit cash for emergencies, home improvements, etc. and pay off the $8,000 over the remaining 29 years of your first mortgage at the same interest rate as your first mortgage. A few caveats.... the second mortgage ($8,000) can't be any more than 5% of the sales price. Thus, if you're buying a home for less than $160,000 you won't be able to borrow the full $8,000 from VHDA. Also, you can't receive cash back at closing --- you have to use all of the loan at closing for down payment. But don't worry --- in either of those scenarios, you'd still get the full $8,000 tax credit when you filed your taxes, you just wouldn't have borrowed all of it at closing. Click here for the full program flyer. Receive updates from HarrisonburgHousingToday.com via e-mail: Enter your e-mail address: Recent Articles: Harrisonburg Area Home Sales Over $500K Continue To Soar In 2020 Preston Lake Has A Swimming Pool! Tell the City of Harrisonburg What You Think Should Change (or stay the same) In The Zoning and Subdivision Ordinances Contract Activity Continues Full Steam Ahead In October 2020 How Many Unrelated People Can Live In A House In Harrisonburg? Different Strategies for Buying A Rental Property For Your College Student Sometimes Buyers React Irrationally To Home Inspections Harrisonburg Area Home Sales and Prices Soar In September 2020! Is October (Right Now) Too Late In The Year To List Your Home For Sale? Large Mixed Use Development With 728 Homes (Plus Commercial Space) Planned On 133 Acres Just Outside Harrisonburg
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Oct 21, 2020 (unless otherwise noted).
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