New Mass Tax Credit Loan Program
Gov Patrick announced on July 14, 2009 that the establishment of a Tax Credit Loan Program for eligible first-time homebuyers is to be utilized in conjunction with MassHousing's first mortgage programs. The Homebuyer Tax Credit is a new tax credit included in the recently enacted Federal Housing and Economic Recovery Act of 2008 (HERA) for homes purchased in 2008 and 2009. The maximum available credit is $8000 and it is claimed when the homeowner files their 2009 tax return. To be eligible, the homeowner must purchase the property by November 30, 2009. All other first-time requirements associated with MassHousing first mortgages will remain in place.
In an effort to stimulate homes sales, several states have initiated programs that make this tax credit available up-front in the form of cash by "Monetizing" the tax credit. The funding of this tax credit is through the state housing finance agencies and is used for downpayment, closing costs, and other closing related expenses and is available at the time of loan closing. The terms of this MassHousing program are similiar to those offered by other states.
An FAQ document will be available on www.masshousing.com in a few days