Artesia News

Redevelopment Agency offers First Time Home Buyers credit

The Artesia Redevelopment Agency will advance to qualified homebuyers a loan of up to $8,000 to be used for a down payment and/or closing costs.

A federal tax credit is available to qualified homebuyers who purchased a home in 2008 or before November 30, 2009. The National Housing Act - The American Recovery and Reinvestment Act of 2009 provides a federal income tax credit for first time homebuyers of ten percent of the sales price, up to a maximum of $8,000 for the purchase of a new or existing home.

A first-time homebuyer is any individual who has had no ownership interest in a principal residence during hte prior three years. The home must remain the home buyers principal residence for 36 months after the acquisition of the home by the homebuyer.

Pursuant to Section 528 of the National Housing Act, government agencies may take a second lien behind the lien securing a FHA insured loan to a borrower. The Artesia Redevelopment Agency is offering a special short-term second mortgage loan to qualified buyers. The loan will be repaid with the homebuyer tax credit refund.

The second mortgage loan can be used for down payment or closing costs or a combination of both.

The homeowner will amend his/her 2008 tax return to obtain the refund that will provide funds to pay off the second mortgage loan within 60 to 90 days after loan closing.