BALTIMORE, March 23, 2009 – There’s lots of talk these days about U.S. Government programs to help responsible home owners keep their homes, and to help home buyers get into the market. But where’s the beef? Where are the programs and how does one go about qualifying for the benefits?

 

A law currently in effect is The American Recovery and Reinvestment Act of 2009, which authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009:

 

·   First-time home buyers (buyers who have not owned a principal residence during the three-year period prior to the purchase) of new or resale properties are eligible. The purchase date is the date of closing, which is when title transfers to the new home owner.

·   The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000, subject to income limits ($75,000 for singles, $150,000 for married couples) and to credit reductions for buyers with a modified adjusted gross income.

·   This tax incentive is a true tax credit (different from the tax credit Congress enacted in July 2008). However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount (with certain exceptions).

·   Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return.

·   Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.

·   The credit is refundable, which means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion (or even the entire amount) of the refundable tax credit.

 

For more information, visit http://www.federalhousingtaxcredit.com/2009/faq.php - or contact the Ron Howard Group @ 410-814-2404

 

Also Look for Local Programs to Get Past Obstacles to Home Ownership

 

John Hopkins – Live Near Your Work

 

Johns Hopkins knows that the down payment and settlement costs are big barriers to homeownership—especially for first-time home buyers. So the company has teamed up with Baltimore City and the state of Maryland to offer grants to eligible employees who choose to purchase homes in designated neighborhoods near the Homewood, East Baltimore, Peabody and Bayview campuses. 

The program is open to all full-time, benefits-eligible employees at: Johns Hopkins University  I  John Hopkins Bayview  I  Johns Hopkins Health Care  I  Johns Hopkins Community Physicians  I  Johns Hopkins Health System  I  Johns Hopkins Home Care Group  I  (Employees of the Applied Physics Laboratory are not eligible) 

 

To date, the Johns Hopkins “Live Near Your Work” program has awarded well over 300 grants (grants vary by location and restrictions apply, but other assistance may be available from other sources).

Visit http://www.livebaltimorecity.com/Buyer-Resources/Buyer-Suggested-Reading/Workplace to view maps showing areas covered by the program.

 

Grant amounts vary according to neighborhood. The areas targeted for the largest grants are identified as “Tiers.”

·   Tier A1 (Harwood, Barclay, and Greenmount West) - $17,000.

·   Tier A2 (EBDI) - $17,000.

·   Tiers B1 (Remington) and B2 (Better Waverly, and a section of Abell) - $10,000.

·   Tier C (sections of Baltimore Linwood and Baltimore Highland) - $6,000.

 

Non-Tier Areas (within the “Live Near Your Work” footprint but beyond those of the Tiers) will receive grants of $2,500. There is a limited number of Non-Tier area grants available per fiscal year.

 

The Maryland Mortgage Program – House Keys 4 Employees

 

The “House Keys 4 Employees” program enables eligible homebuyers who use a Maryland Mortgage Program loan to purchase their home to receive more down payment and/or closing cost assistance than is available through the standard down payment and closing cost assistance programs.

 

The Maryland Department of Housing and Community Development (DHCD) will match contributions dollar-for-dollar (up to $5,000) toward down payment and closing costs from participating employers:

 

·   The employer’s contribution may also be combined with assistance from local jurisdictions, unions and/or nonprofit agencies (the House Keys 4 Employees match to the combined contributions will not exceed $5,000).

·    The match is in the form of a 0% deferred loan that is repayable at the time of payoff or refinance, or upon the sale or transfer of the house.

·   This assistance is over and above what is available through the standard down payment and closing cost assistance programs, allowing some borrowers to have more choices in buying a home.

 

For more information, visit http://www.mmprogram.com/Info4Borrower.aspx

 

Use Your Best Baltimore Real Estate Source for Assistance

 

The Ron Howard Group has been around, knows Baltimore area real estate inside and out, and is fully prepared to educate buyers (and sellers) on ways to make every penny count in real estate transactions during these difficult economic times. Contact us for home buyer tips and guidance or home seller tips and guidance.

 

Contact Information: 410-814-2404 or email us @ ron@livebaltimorecity.com