State offers tax credit loans for first-time homebuyers

The Daily ItemBOSTON – Gov. Deval Patrick has announced a First-Time Homebuyer Tax Credit Loan Program through MassHousing that will allow first-time homebuyers to borrow up to $8,000 in advance of their federal tax credit for homes purchased with a MassHousing loan before Dec. 1.”These loans will both help prospective homebuyers achieve the comfort and stability of homeownership for their families, and also stimulate the Commonwealth’s economy through increased home sales, while reviving neighborhoods impacted by foreclosure,” said Patrick.”Monetizing the First-Time Homebuyer Tax Credit will be a great help, and further incentive, for Massachusetts residents who are considering buying their first home,” said Lieutenant Governor Timothy P. Murray, chairman of the Interagency Council on Housing and Homelessness. “This is just one example of the innovative way we can work together to promote homeownership and community development.”The First-Time Homebuyer Tax Credit Loan will allow Massachusetts homebuyers to use the $8,000 tax credit from the federal Housing and Economic Recovery Act (HERA) of 2008 as a funding source at the time of closing to help purchase the home. Under HERA, the maximum available credit is $8,000 and is claimed when homebuyers file their 2009 federal tax return.”It’s an amazing opportunity for first-time homebuyers like myself,” said Thomas Gusha, who bought a home in Worcester and will be seeking the first-time homebuyer federal tax credit. “This Tax Credit Loan will be a great benefit for homebuyers because it will give them more money up front when they purchase their home and this will hopefully encourage more people to buy a home.”Homebuyers who take advantage of the program will have the principal and interest payments on the tax credit loan deferred from the time of closing until the loan due date of June 1, 2010.

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