NJ First Time Home Buyer Tax Credit LOAN

NJ First Time Home Buyer Tax Credit LOAN

http://www.state.nj.us/dca/hmfa/consu/buyers/ownprg/tclp.html

It looks like everybody is doing it again - helping First Time Home Buyers (FTHB) - Buy a Home with another LOAN package. I hope that for the sake of the first time home buyer (FTHB) that this doesn't become a nightmare.

Basically, this sounds like the FTHB is going to borrow money from their own future 2009 Federal Tax FTHB Credit of up to $8,000.

Therefore, if the buyer needs additional money for down payment and/or closing cost - they could go to their state agency - borrow up to $5,000 - then after they apply for their tax credit - the no interest loan is paid back with this Federal Tax Return.

I like this idea. And I am glad that the program is helping families buy their first home. But this entire process - if I am not mistaken - is based on helping families that can't save enough for the purchase of a home. Hummm

I prefer a saving incentive such as the Individual Deposit Accounts (IDA) where the banks match money saved by the family for the purpose of buying a home. The money belongs from the family and the Bank; no more government money and the family learns a good lesson - SAVE money for your Home and Family.

Therefore, I warn FTHB to use this program - the TAX CREDIT LOAN - with CAUTION.