Your $8000 SHIP has come in. But are you first in line?
July 1, 2009 marked the new fiscal year for SHIP (State Housing Initiative Program), a state funded down payment assistance program for low-level income home buyers. However, this year the $161 million grant used to fund this program has been cut to $30 million to fund the Florida Homebuyer Opportunity Program (FHOP).
The $30 million is split amongst the counties of Florida. Each county then distributes the money based on city/area. In most areas, this will mean that less than 10 first time homebuyers in any given city/area will receive an advance on their $8000 tax credit to use towards the purchase of a new home today.
If you are one of the lucky few to get the $8000 advance to use towards down payment, mortgage loan closing costs, or pre-pays associated with the purchase, here is what you need to know:
- First-time home buyers this year are eligible for a federal income tax credit of up to $8,000 if their income generally is $75,000 or less for single taxpayers and $150,000 for married couples.
- Anyone who hasn’t purchased a home in the past three years qualifies as a first-time home buyer.
- Rather than let home buyers wait until 2009 tax returns are filed next April, Florida legislators decided to advance the $8,000 in an interest-free loan.
- Buyers have to agree to file for the tax credit and to repay the money within 18 months.
To find out more about FHOP or to stake your claim for the $8000, contact your local SHIP office. Click here to find your local SHIP office. Oh, and one more thing, even though the program officially started on July 1, 2009, the cash is not there yet to make the loans to home buyers.
Should you not get the $8000 tax credit advance loan, do not worry. 100% USDA Guarantee Mortgage Loans are still in place and are still funding. And 97% HomePath is still going strong. Compare these two loans side-by-side.