Use the First-time Homebuyer Tax Credit for a Down Payment on a VHDA Mortgage.

 

This loan has a built-in second mortgage to help cover the down payment and closing costs, with zero interest and no payments for the first 12 months.

 Recent economic recovery legislation has created a tax credit incentive of up to $8,000 for firsttime homebuyers. VHDA’s Homebuyer Tax Credit Plus loan lets borrowers take advantage of the federal First-time Homebuyer Tax Credit to finance the down payment and closing costs.

 Choose the preferred payment plan:

 1. Pay off the second mortgage with the federal First-time Homebuyer Tax Credit. Doing so will build instant equity in the home!

2. Pay off the second mortgage over 29 years — and save the Tax Credit to pay for future emergencies, make home improvements or pay off/pay down existing debt.

3. Make principal payments on the second mortgage before the repayment period begins; this will reduce the required monthly payments for the remaining 29 years on the second mortgage.

 Program Features:

 • Affordable fixed-rate financing on both mortgages.

• Repayment of the second mortgage begins one year after the first mortgage payment.

• Interest rate of second mortgage: zero interest for the first year – beginning

the 13th month, the same interest rate as the first mortgage.

• Maximum loan amount: First mortgage – maximum FHA mortgageSecond mortgage – up to 5% of sales price (no cash back)

• Loan must close no later than November 30, 2009.

 For additional information on the 2009/2010 Extended and Expanded Homebuyer tax credit see the Buying a Home tab on my home page.

For more information about VHDA’s Homebuyer Tax Credit Plus program, visit vhda.com or call 877-VHDA-123. 

Notice: VHDA does not guarantee borrowers eligibility for the federal First-time Homebuyer Tax Credit. Borrowers can file an amended tax return after closing, and should consult a tax advisor or the IRS for complete eligibility criteria. Information is available at www.irs.gov. If borrowers are not eligible for the First-Time Homebuyer Tax Credit, or the tax refund (if any) is not enough to repay the Homebuyer Tax Credit Plus loan, borrowers are still obligated to repay the second mortgage, plus all applicable interest