Utah Housing Corporation launches Equity Now a program to monetize the home-buyer tax credit!
Home buyers who use a Utah Housing Corporation loan can now use the $8,000 first-time home buyer tax credit to help with their down payment and closing costs. This is done through a new monetization program called Equity Now. Under the program, home buyers will take out a second mortgage, which can be up to 6 percent of the first mortgage amount. Because the first-time home buyer tax credit funds are not available before a home purchase, this second mortgage will be used to help pay the down payment and closing costs. This second mortgage can then be paid off with the funds from the tax credit when it becomes available.
After closing, qualified buyers will file an amended 2008 tax return to receive the tax credit. For buyers who put the full tax credit amount towards the second mortgage (which can be up to six months after closing), Utah Housing Corporation will credit an additional $100 to the second mortgage. For many borrowers, the tax credit will provide near-instant equity by substantially lowering or even eliminating the second mortgage balance.
To learn more about the program and eligibility requirements, visithttp://www.utahhousingcorp.org/ or talk to a UHC participating lender.
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