Update: Tax Credit Advance Loan Program

The new Housing Tax Credit Advance Loan Program is not up and running yet, but we are finalizing the details and we should be ready to roll it out within the next few weeks (or so)!  In the meantime, there are things your clients can do right now to be eligible and ready once it is up and running.
 
As you are aware, the 2009 Economic Recovery and Revitalization Act included a “refundable” tax credit worth up to $8,000 for taxpayers who purchase their first home between January 1 and November 30, 2009.
 
In Washington, REALTORS have focused our efforts on the development of a Housing Tax Credit Advance Loan Program to make the equivalent of a first-time homebuyer’s tax credit (up to $8000) available to borrow for down payment through the Washington State Housing Finance Commission.
 
The Housing Tax Credit Advance Loan Program, the first of its kind in the nation, is being developed through a partnership that includes the Washington Realtors, Washington State Treasurer’s office, and Washington State Housing Finance Commission, which was authorized in the recently passed state budget.
 
Details of the program are still being refined, but here are the basics:

• The State makes a deposit with a selected FDIC insured financial institution.
• REALTORS and other stakeholders have a stake in the program by backing the loans with funds to provide security against any losses.
• The financial institution then provides the Washington State Housing Finance Commission with a line of credit up to $8000 to qualified first-time home buyers for a down payment.
• The advance loan is paid once the IRS delivers the home buyer’s refund.

What you and your clients can do NOW to prepare: