Think the end of the tax credit means the end of government support for first-time homebuyers? Think again! The government has supported first-time buyers for decades. With interest rates at historic lows and lots of Sellers competing for your attention, this is the perfect time to look into ways the government can help you get into your first home. A home is not only a great long-term investment, it also represents security for your family and a great tax deduction as well. It also can be available for a government subsidy.
The Mortgage Subsidy Bond Tax Act of 1980 allows state and local housing finance agencies to issue tax-exempt Mortgage Revenue Bonds (MRBs) in order to finance mortgage loans. MRB proceeds are used to purchase or originate mortgage loans at below market rates! The interest-rate savings of these mortgages will vary, but a 1% reduction on the interest rate could lower the payment on a $200,000.00 home by approximately $120.00 per month!
Qualification standards for mortgages financed through these bonds vary from program to program. The following represent typical requirements to be eligible for this type of financing:
Your household income cannot exceed 115% of area median family income.
The price of the home purchased with an MRB-financed mortgage may not be greater
than 90% of the average price of homes in that area.
You must not have owned a home in the previous three years.
The purchase must be of a primary residence.
If this sounds like you, it is time to get in the game! The rates we have today will not be available forever. Once gone, we may never see such low rates again. If this type of loan is not the right fit for you, there are other very advantageous programs that will help you get into a home. Get in touch with me and we’ll get you in touch with a mortgage that will get you in a home!
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