$8000 Federal Tax Credit: States getting first-time buyers cash

May 04, 2009

If you are a first-time buyer eyeing the Obama administration’s tax credit, you may be wondering how that money could help you this year.  Specifically using the cash this year,  not after you file your 2009 taxes 11 months from now.  Chicago real estate has not been this affordable in a generation and those who are browsing the housing market should be excited.  If there ever was a time to buy, it is now.  But how can the $8,000 federal tax credit help you today?

As many as 10 states have now invented ways for buyers to tap into this federal tax credit by offering loans that resemble bridge loans.  Missouri, the first to come up with such a program is helping people come up this the cash to help cover closing costs for qualified buyers.   These tax-credit loans take the form of second mortgages that are payable when the credit becomes available.  Missouri’s version is interest free payable June of 2010.   Should a buyer have trouble meeting the deadline,  the advance turns into a traditional 10 year mortgage.

The local question becomes of course, when will Illinois launch a program such as this?  We know that Chicago real estate is finally seeing some life and this could be a boost to the sale of existing homes on the market.   Experts argue that the success of this federal program is the participation of the states and access to federal funds for the states to loan to buyers.  The clock is ticking to the November 30th cutoff date.  Let’s hope those elected in Springfield can get something together before this window of opportunity vanishes.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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