Patrick, MassHousing
Monetize First-Time Homebuyer Credit
Gov.
Deval Patrick has announced a loan program through MassHousing
allowing first-time homebuyers to monetize and use an $8,000
federal tax credit as a funding source toward the closing costs
of their new home.
The
principal and interest payments for the loan will be deferred
until June 1, 2010, to allow first-time homebuyers to pay back
MassHousing with their federal tax credit. If loans aren't paid
by the June deadline, they will be amortized for 10 years at
the rate of their original mortgage.
The
loans will be available only to homebuyers with MassHousing
mortgages, through MassHousing-approved lenders. To be eligible,
loan participants must use the home purchased through the program
as their primary residence for at least three years, and must
purchase a one, two, three or four-family home from a seller
unrelated to the buyer by Nov. 30.
These
loans will both help prospective homebuyers achieve the comfort
and stability of homeownership for their families, and also
stimulate the commonwealth's economy through increased home
sales, while reviving neighborhoods impacted by foreclosure,"
Patrick said in a statement.
