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This is a pre announcement about a program that OHFA will have available effective March 30, 2009. The short and sweet is that OHFA will be lend Qualified Buyers up to 3% of the Sales price in anticipation of the buyer recieving the Federal Tax Credit Stimulus as part of the Recovery Program. This could create a Zero interest loan if the loan is paid in Full by July 1, 2010.
If the program is like the Prior Secondary loan that OHFA has offerred in the past, the buyer must use the Rate Based OHFA Program and would not be allowed to that the 2.50% DPA program that was associated with it.
Added March 19, 2009 10:45AM So far this morning OHFA has been swamped with phone calls about this program. They are asking that Lenders, Realtors and Consumers be patient and wait at least a week for details, remember the program does not start until 3/30/09. Any Realtors of buyers wishing to recieve updates, please drop me an email and I will forward any information I recieve as soon as it is recieved.
Additional Details to follow.
Homebuyer Tax Credit Advantage Program
Effective Date: March 30, 2009
The Homebuyer Tax Credit Advantage Program offers a second mortgage to borrowers who obtain a first mortgage through the OHFA First-Time Homebuyer Program. In order to encourage first-time homebuyers to enter the market in 2009, the program will allow OHFA first-time homebuyers to leverage the benefit of the federal first-time homebuyer tax credit for down payment and/or closing costs. The American Recoveryand Reinvestment Act of 2009 amended and extended the first-time homebuyer credit to include purchases closing between January 1 through November 30, 2009. For qualified first-time homebuyers who purchase a home in 2009, the maximum credit is $8,000 and can be claimed on a buyer's 2008 or 2009 federal tax return.
The loan may be up to three percent of the purchase price. No cash back may be issued to the borrower.
- Principle and interest payments are deferred until July 1, 2010 after which, loans will amortize over 15 years at an interest rate 1% above the first mortgage rate.
- The OHFA application fee will be $300 and can be paid by the buyer, seller or financed in the loan.
- There is an incentive for early repayment of the loan. If the loan is paid in full prior to July 1, 2010, OHFA will forgive $300 of principal.
- Lenders may charge a special processing fee of $75.
- All loans must be recorded as second mortgages using OHFA note and mortgage documents.
- Borrowers must have a minimum 600 credit score.
- Borrowers must complete homebuyer education through a HUD approved counseling agency or through OHFA's streamlined program.
