New OHFA program maximizes tax credit for homebuyers

COLUMBUS, OH - March 26, 2009 - (RealEstateRama) — The Ohio Housing Finance Agency (OHFA) today announced that they will launch their new Homebuyer Tax Credit Advantage Program on Monday, March 30. The program will allow qualified homebuyers to receive help with down payment and closing costs. Low- to moderate-income Ohioans will be able to use this program to receive a loan for up to 3 percent of the purchase price of their home. After purchasing a home, qualified first-time homebuyers may apply for the new federal tax credit of up to $8,000 on either their 2008 or 2009 tax returns.

“Now is a great time for first-time homebuyers to enter the market and utilize many of the options offered by OHFA to help them become homeowners,” said Doug Garver, Executive Director of the Agency. “We are helping buyers take advantage of the new federal First-Time Homebuyer Tax Credit by offering what they need for down payment up front, making it easier for them to get their dream home.”

The Homebuyer Tax Credit Advantage Program offers a 15-year loan that defers mortgage principal payments and carries a zero interest rate until July 1, 2010, with an added incentive to prepay the loan. Borrowers can either use their federal tax credit to repay the loan or use it toward any other household costs and then repay the loan at a fixed-interest rate over the mortgage term. The new federal tax credit is only available to first-time homebuyers who purchase a principal residence before November 30, 2009.

In order to use the Homebuyer Tax Credit Advantage Program, borrowers must use the Agency’s First-Time Homebuyer Programs (including Ohio Heroes) and are required to complete homebuyer education prior to the closing of the loan. Buyers can use either a housing counseling agency approved by the U.S. Department of Housing and Urban Development (HUD) or the streamlined process offered by OHFA to successfully complete this requirement.

To learn more about OHFA’s homeownership programs or to locate a lender in your area, visit the Homeownership section of OHFA’s web site at www.ohiohome.org beginning March 30.

OHFA utilizes federal and state resources to provide housing opportunities for families and individuals through programs designed to create, preserve, and manage affordable housing throughout the State of Ohio. The Agency is a self-supporting quasi-public agency governed by an eleven-member board, nine of whom are appointed by the Governor and confirmed by the Senate. Two additional seats on the board, by statute, are reserved for the Director of Development and the Director of Commerce, or their designees, and both serve as ex officio voting members.

 

 

 

 

USGBC - U.S. Green Building Council

HUD - U.S. Department of Housing and Urban Development

NAR - National Association of REALTOR

RealtyTrac

FHFA - Federal Housing Finance Agency

Freddie Mac

MBA - Mortgage Bankers Association