How Can a First Time Home Buyer Get The Tax Credit For Down Payment and or closing costs? Absolutely, yes, but you must act fast and meet the qualifications. In NJ there is a Pre Fund program where the state of NJ will “loan” up to $5000 of the tax credit at for first time home buyers at closing for the buyer’s down payment or closing costs. This is called the The First-Time Home Buyers Tax Credit Loan (“TCLP”) Program.
Simply put, TCLP is a loan given to First Time Home Buyers to pay down payment and/or closing costs to Agency Home Buyer Program first-time home buyers who meet all of the requirements of the Home Buyer Program and who are eligible for the credit as permitted by the federal law establishing the credit and the guidance provided by the IRS in the General Instructions that accompany IRS Form 5405 and who apply for a TCLP loan on or after April 8, 2009 and close on the home purchase between April 8, 2009 and before December 1, 2009. The TCLP loan will not exceed $5,000 ($4,000 in the case of married filing separately) and will be secured by a second mortgage. The borrower will pledge to apply the refunds received from the first-time home buyer tax credit toward the repayment of the TCLP loan.
Powered by Facebook Comments