City of Phoenix $15,000 for purchasing foreclosed properties

City of Phoenix

Neighborhood Stabilization Program

As part of the Housing and Economic Recovery Act passed by Congress in July 2008 the City of Phoenix has received $39 million to help families purchase foreclose homes at a discount which in turn will stabilize neighborhoods.

 

The Program

-$15,000 loan for down payment and closing costs for buyers of foreclosed property anywhere in the City of Phoenix

- The money is repaid to the City of Phoenix when the buyer sells or refinances the home

- The targeted properties are single family homes, townhouses and condominiums. These homes must meet the HUD Housing and Quality Standards

 

The Buyer

-         Eligible buyer can earn up to $120% of the area median income.

-         Single person =$53,950

-         Family of 4 = $77,050

-         Must be creditworthy(FICO 620)

-         Attend Credit Counseling and Homeownership Class

-         Must be the primary residence

 

The Sales Contract

      -    Must be a foreclosed property and changed title

-         The sales price must be at least 15% below the current appraised value.

-         Property must be clear of City’s top eight neighborhood code violations

-         Property must pass inspection

-         Must be built after January 1978

 

Here is a opportunity to use part of the Government money to get into a house.

First Time Home Buyer TAx Credits

First Time Home Buyer Tax Credit

The Housing and Economic Recovery Act of 2008 has a tax credit provision which is designed to help first time home buyers purchase their first home. With low interest rates and declining house prices this is a wonderful opportunity to buy a home.
Here are some key things to know about the tax credit
1. First time home buyers will not have owned a home in the last 3 years
2. The income limitations are $75,000 for single taxpayers and $150,000 for married taxpayers.
3. You cannot purchase a home from someone is related to you like spouse, or direct ancestor but purchasing from a sibling, nephews and nieces is okay
4. If you are married both spouses must be first time home buyers
5. If more than one of the unmarried individuals buying a house is a first time home buyer the tax credit will be split up between qualifying individuals.

For homes purchased between April 9,2008 and December 31,2008

The credit is 10% of the purchase price and not to exceed $7,500
The tax credit works like an interest free loan and must be paid back over 15 years.

For home purchased between January 1st and December 1 ,2009

The credit is 10% of the purchase price and not to exceed $8000
The tax credit need not be repaid if you live in the house as your primary residence for 3 years without selling it.

The tax credit is a dollar for dollar reduction in income on your taxes. Please be sure to consult with your tax accountant for more specific details.