Use some of that tax credit at the closing table!
Have a good job, good credit,
but just a
bit short of pocket cash?
The Advanced Tax Credit (ATC) Loan Program
might be your ticket!
So here's the deal. South Dakota Housing Development Authority has put together a program to allow first-time homebuyers to utilize a portion of the tax credit to help pay for downpayment and closing costs. It is actually set up as a loan, so here is how it works:
If you utilize the South Dakota First-time Homebuyer's Program and also qualify for the 2009/2010 income tax credit, you can use 6%, up to $6,000, to help with downpayment and closing costs. It is actually worked out as a 0% interest loan, payable in full on June 1, 2010. If you don't pay the loan off at this time, monthly payments will start on July 1, 2010 - at 6% interest for 5 years. But let's be smart here...
Here's what you do:
- Buy a home before April 30, 2010.
- Use up to $6,000 of your tax credit to pay downpayment and closing costs.
- Move into your new home.
- File for your tax credit when you do your taxes.
- Pay off that $6,000.
- Still get $2,000 credit on your income taxes.
- Smile and enjoy life to its fullest.
Good stuff, huh?
Contact your local South Dakota Housing Development Authority approved lender for further details. (see sdhda.org)
Equal Housing Opportunity 