Additional Tax Credit For First Time Homebuyers Approved for New York State

This new Credit just approved is for first time home buyers in New York State.  The funding for it is available from Sept 1st thru Novemeber 31st 2009.  So what I'm trying to say is....first time home buyers you need to purchase a home NOW so that you can close by the dates above. 

I only wish that I was a first time home buyer....the incentives have never been better, and along with the fact that the rates are still low!!!!

 

Below is the additional information you may need, or just email or call me for additional information.

Kayel Buffaline (518)339-5212   kbuffaline@cbpp.com

 

THE “NEW” HOMEBYER TAX CREDIT SONYMA Mortgage Credit Certificates (MCC’s)

 WHAT YOU NEED TO KNOW

 The State of New York Mortgage Agency (“SONYMA”) typically makes its mortgage funds available through the issuance of tax-exempt bonds. With mortgages funded by tax-exempt bonds, the borrower receives a benefit through a lower rate of interest from SONYMA. Due to the prolonged disruptions and uncertainty in the tax-exempt municipal bond market, rates on these bonds have been unusually high. Federal tax law provides state housing finance agencies, such as SONYMA, an alternative to issuing tax-exempt bonds with the Mortgage Credit Certificate (MCC). With the MCC, homebuyers can convert a portion of their annual interest paid on conventional, FHA or VA loans into a direct dollar-fordollar Federal tax credit. MCC Benefit: • Borrowers can convert 20% of their annual mortgage interest into a direct Federal tax credit. • This tax credit may be taken annually until the mortgage loan is extinguished as long as the home remains the borrower’s principal residence. MCC Fees: • Loans up to $100,000 will be required to pay a one time fee to SONYMA of $250. • Loans over $100,000 will be required to pay a one time fee to SONYMA of $500. Borrower Eligibility: • Must be a first time homebuyer. Target Area and Veteran waivers apply. • SONYMA income limits apply. 1 & 2 person households cannot exceed $74,100 and 3+ person households cannot exceed $85,215 except in designated Target Areas. • SONYMA Purchase Price limits apply. $273,050 is the maximum purchase price except in designated Target Areas. Property Eligibility: • Existing 1-to-4 family homes. • New 1 family homes • New 2 family homes must be located in Target Areas. *** This benefit can be used in conjunction with the $8,000 Federal Housing Tax Credit.

Kayel Buffaline

Kayel Buffaline

Licensed Associate Real Estate Broker
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