A new program in the Brazos Valley could make owning a home much easier.
If you qualify, you could get a tax deduction for the entire life of the mortgage loan, making a big purchase less daunting.
"This is a positive thing and I think it comes at a very critical time when we just as I said we just lost that $8,000 tax credit and this will let people say yeah, yeah maybe this is a good time for us to make that long-term investment in a home," said Mike Beal, Owner of Century 21 Beal, Incorporated.
Mike Beal is one of dozens of area Realtors who learned about a new mortgage credit certificate program Thursday.
The Brazos County Housing Finance Corporation announced a $28 million tax credit program for first-time home buyers for the seven counties of the Brazos Valley.
"As you buy, a first-time home buyer and buy a house then you can get up to $2,000 refund off your income tax and so you can get that for the life of the loan. So we think that's a substantial asset for people who are first-time home buyers who can come and afford a home," said Kenny Mallard, Brazos County Precinct 3 Commissioner.
Here are some of the guidelines for the program which begins on June 7th.
The tax credit is available for low to moderate income families who are buying a home for the first time.
For example, a family of one to two people would have to earn less than $58,600 annually, while a family of three or more people would have to earn less than $67,390 annually.
The purchase price of the home would also have to be less than $258, 691.
The Mortgage Credit Certificate is a dollar for dollar credit of approximately $150 a month in savings for the borrower with up to $2,000 a year in tax refund.
We're told over a 30 year period, the overall savings on the mortgage could range anywhere from $30,000 to $40,000.
"I think it's a great tool that we'll have, there are many tools that are out there. I think the Council of Government's here also has a good down payment program and so it's just one more tool the citizens will be able to us to help them a first time buyers," said Kenny Mallard.
"I'd like to encourage my neighbors and all of the community members to look into the program. I'd love to have more leaders join and to assist us," said Irma Cauley, Brazos County Precinct 4 Commissioner.
Another aspect that makes this program unique is the fact it's good for the life of the loan as long as the borrower lives in the home and pays on the mortgage.
"This program, although it's not gonna cure all of everything that's going on, the economy or anything like that it's a step in the right direction," said Mike Beal.
A direction that has the potential to unlock the doors of new home ownership.
There is a one time fee to use the program.
It's a little over one percent of the purchase price.
For a $100,000 house you would have to pay $1,150 in fees at the time of closing.
The new program is set to expire at the end of 2012 or when certificates run out.
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