Four apply countywide for homebuyer assistance program

Twenty years ago, Shirley Grimes wished for a home that "no one could take away from her."

In two weeks she'll be able to pay most of the down payment for her new home with the help of Florida Homebuyer Opportunity Program.

The program offers first-time home buyers a tax credit for the purchase of their home.

Twenty-one-year-old Heather Tatum and her husband, Miles Tatum, are also benefiting from the tax credit program. The couple will receive $5,500 for the down payment of their first home, which is set to close in December.

The Tatums and Grimes are two of four applicants in Highlands County who have applied for the tax credit that can be used toward down payment and closing costs.

The county has not closed on any homes that have used the tax credit program but they expect two closings within the next two weeks.

"Half the buyers we see are making comments about it. They are asking us a lot of great questions and are eager to see what they can do to take advantage of it," said Greg Karlson, broker and owner of ERA Advantage Realty in Sebring.

Karlson and other Realtors said toward the first deadline in November they had a spur of inquiries about the program, but people seemed to have run out of time.

Now that President Barack Obama extended the tax credit program, of up to $8,000, for first-time home buyers to April 2010, they have more time to apply and know if they qualify.

The county's housing office is expecting more applicants to take advantage of the $350,000 they've received for this program.

Those who've owned a home in the past shouldn't be discouraged - the housing office defines "first time homebuyer" as people who haven't owned a home in the last three years.

This, and the income requirements of less than $75,000 for individual filing taxpayers and $150,000 for joint, makes the program available to the majority of people in the county.

The program offers 10 percent of the value of the home up to $8,000. The tax credit is awarded as a bridge loan.

Homebuyers who pay back the loan within 10 days after receiving their tax returns don't pay interest. Homebuyers can also choose to make payments at 8 percent interest for 36 months.

"The good deals for buyers are becoming less and less," he said.

Heather Tatum began looking for her first home in July and found it in October.

It was the first house the Realtor showed her. Tatum said when she saw the Avon Park wood-framed home she knew it was the one.

"I looked at it and told my husband this is it. This is our house," Tatum said.

The Tatums will pay $200 less in mortgage every month than what they pay in rent. They are scheduled to close in December.

"It's a great Christmas gift," Tatum said.

USDA guaranteed loan

Realtors have seen buyers interested in these government incentive deals like the tax credit and the U.S. Department of Agriculture's Rural Development guaranteed loan.

Grimes is using a 100 percent financed USDA guarantee loan and the tax credit for her purchase.

Sterling Grubbs, assistant vice president of real estate lending for MIDFLORIDA Real Estate Experts, worked with Grimes on applying for both programs.

"It's highly unlikely that you'll find 100 percent financing with any other program if you're not a veteran," Grubbs said.

The USDA guaranteed loan is available to all homes in Highlands County and offers lenders security on risky loans.

Grubbs' office closed on three USDA guaranteed loans last month - the most he's done in one month.

But the increased demand has lengthened the processing time and he suggests that applicants expect to close within 60 days instead of 30 days.

Fast facts about first-time Homebuyer Tax Credit:

Homebuyers receive up to 10 percent of the value of the home up to $8,000.

Must be their primary residence.

Must have contract by May 1, 2010 and close before July 1, 2010.

No tax credit for homes worth more than $800,000.

Individual filing taxpayer income must be less than $75,000 and jointly filing taxpayers less than $150,000.

For more information on the homebuyer credit visit www.floridahousing.org

USDA Rural Development Guaranteed Loan:

Income cap is $73,000 for 1 to 4 person household and $97,150 for 5 to 8 person household.

Credit score of 620 or more.

Must be the primary residence.

If appraised amount if more than the purchase price the customer may finance the closing costs with the loan.

Source: http://www.rurdev.usda.gov/fl/grhinfo.htm