|
FACT SHEET: Florida Homebuyer Opportunity Program; Federal $8K Tax Credit for First-Time Homebuyers
What: A powerful new economic stimulus, the Florida Homebuyer Opportunity Program provides eligible first-time buyers with up to $8,000 toward the purchase of a home, based on the new federal tax credit. The Florida Legislature set aside $30.1 million for this new statewide program, which acts as a tax credit bridge loan.
How it works: A qualifying buyer who purchases a Florida home can use the $8,000 immediately for several purposes:
• Downpayment.
• Closing costs.
• Renovations or repairs.
What about repayment? Buyers are expected to repay the funds by using their federal $8,000 first-time homebuyers tax credit, which will become available after filing an income tax return with the IRS.
When: The new Florida program runs through Nov. 30, 2009 – currently the last day for finalized home purchases to qualify for the federal tax credit. Which homes are eligible? Under the state program, funds may be applied to primary residences, including: single-family homes, condos, townhomes and co-ops. Manufactured housing may be eligible if it meets “certain criteria.”
How to apply: Local county and city housing offices that already operate the State Housing Initiatives Partnership (SHIP) will administer the program, under the overall direction of the Florida Housing Finance Corporation. Most of the policy decisions for the program are implemented on the local level. Prospective buyers should contact their local SHIP office regarding application procedures and repayment requirements. To find the local SHIP office, go to: http://apps.floridahousing.org/StandAlone/FHFC_ECM/AppPage_SHIPLGContacts.aspx
Impact: Research by the Florida Housing Finance Corporation indicates that more than 3,000 prospective first-time homebuyers could benefit from the Florida Homebuyer Opportunity Program.
Quote: “We want Floridians to take advantage of this important program, which will help stimulate the state’s economy as well as the real estate market. By helping qualified first-time buyers come up with the funds needed to purchase a home, this initiative will play a vital role in overcoming the largest financial barrier to homeownership.” - Cynthia Shelton, 2009 president, Florida Association of Realtors® (FAR).
FAR’s actions: To help educate consumers and real estate professionals about this important new Florida program and the federal $8,000 tax credit for first-time homebuyers, FAR has designated the week of July 12-18 as “Welcome Home Week: Making Homes Affordable.”
What about the federal tax credit? Under the American Recovery and Reinvestment Act, approved in February, any qualified first-time buyer who purchases a home from Jan. 1, 2009, through Nov. 30, 2009, is eligible for a federal tax credit up to $8,000. To qualify as a “first-time homebuyer,” the buyer or his/her spouse may not have owned a residence during the three years prior to the purchase. Buyers do not need to repay the tax credit if they occupy the home for three years or more. However, if the property is sold during the three-year period, the credit must be repaid.
How big is the federal tax credit? The size of the tax credit is determined by two factors:
• The purchase price of the home. The credit covers 10 percent of the cost, up to a maximum of $8,000. For example, a home purchased for $80,000 or more would qualify for the full $8,000 credit while a $70,000 home would only qualify for 10 percent, or $7,000.
• The buyer’s income. Single buyers with incomes up to $75,000 and married couples with incomes up to $150,000 may receive the maximum tax credit. Buyers’ whose income exceeds these limits may still be eligible for a partial credit. Homebuyers earning more than the maximum qualifying income – over $95,000 for singles and over $170,000 for couples – are not eligible.
Impact of the federal program: According to estimates by the National Association of Home Builders (NAHB), the federal homebuyer tax credit will stimulate 160,000 home sales across the nation – 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first-time buyer purchased their original home, NAHB predicts.
About FAR: The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 115,000 members in 67 boards/associations.
For more information:
• www.floridarealtors.org
• www.floridarealtors.org/AboutFar/homebuyercenter/index.cfm
• www.floridahousing.org/Home/HousingPartners/LocalGovernments/FL_HOP.htm
Contact: Marla Martin, FAR communications manager, or Jeff Zipper, FAR vice president of communications: 407/438-1400, ext. 2326 or 2314. |
