$8000 at closing for first-time buyers! Really this time.
Remember those broken promises? Shaun Donovan told a room full of Realtors that buyers would be able to get their $8000 credit at closing. Then the back peddling two days later. Then, Shaun was at it again, promising the National Association of Homebuilders.
Well, the mischief has been managed by the Commonwealth today. [the link is https, so your browser may object]
First-time homebuyers who use MassHousing loans can now have their $8000 tax credit up front. Payback is due by June 1, 2010.
Here is the first set of details:
To qualify:
1. Home buyers must be a first-time home buyers using MassHousing mortgage through a MassHousing-approved lender.
2. Home buyers must use the home as a principal residence for at least three years. (No investors!)
3. Home buyers must purchase a one, two, three, or four-family home from a seller who is not related to that buyer by November 30, 2009.
The repayment rule:
The loan has no monthly payments. It is to be paid in full before June 1, 2010 (enough time to get your tax credit back from April 15th filing.) If it is not paid back in full, it will be amortized for 10 years at the same rate as the first mortgage loan.
I still think this is a bad idea. It is going to tempt the wrong people back into the market.
(Thank you, Eric at Mortgage Master, for your tip-off about this news item.)
