By BARRY MASSEY
First-time homebuyers may find a sweet deal with new financial assistance
offered by the state and federal government.
Gov. Bill Richardson and the state Mortgage Finance Authority announced a
loan program Tuesday that will help lower- and middle-income New Mexicans make a
down payment to buy their first house. They also promoted a federal tax credit
available for first-time homebuyers.
The tax credit, which was approved this year to help stimulate the housing
market, is for 10 percent of the purchase price of a home, up to $8,000. The
federal credit is for homes purchased between Jan. 1 and Dec. 1.
"Essentially you're getting free money from the federal
government," Richardson said at a news conference outside of a home that's
part of an affordable housing program in a southside Santa Fe development.
For purposes of the program, a first-time homebuyer is someone who hasn't
owned a house for the past three years.
The full credit is available to married couples filing a joint tax return
with incomes up to $150,000, and single taxpayers with incomes up to $75,000. A
partial credit is available for those with higher incomes.
The credit will apply against a taxpayer's income tax liability when filing a
2008 or 2009 federal income tax return. Unlike a $7,500 housing credit created
last year, the newest incentive doesn't have to be repaid. It's also a
refundable credit. That means a taxpayer will receive a refund from the federal
government for the difference between their tax liability -- if it's less than
$8,000 -- and the credit amount. An individual who owed $3,000 in taxes, for
example, would receive a $5,000 payment from the federal government if qualified
for the full $8,000 credit.
Down payments often represent a big hurdle for people buying their first
homes. To help ease that problem, the authority developed a down payment
assistance program that works in conjunction with the federal tax credit.
The authority will provide a loan of up to $6,500 for a down payment and
closing costs. Individuals can use the refund from their federal tax credit to
pay off the loan. The loan is interest-free if it's repaid by June 30, 2010. The
authority offers a 30-year, fixed rate mortgage to homebuyers taking advantage
of the down payment program.
"Needless to say, this is a once-in-a lifetime opportunity. So I want
first-time homebuyers in New Mexico to take advantage of this," Richardson
said of the state and federal assistance.
The tax credit loan program is available for homes costing up to a certain
amount: $237,031 for all areas of the state except Santa Fe and Los Alamos
counties, which have higher limits. In Santa Fe County, a qualifying home can
cost up to $343,799. It's $286,875 in Los Alamos County.
Income eligibility for a first-time homebuyer with a household of three or
more people: up to $65,500 in Santa Fe and Los Alamos counties; $64,285 in the
Albuquerque metropolitan area; and $53,590 in other areas of the state.
"We know there are a lot of New Mexicans that are living in apartments,
living with family members and don't even realize that they are qualified for
home ownership," said Jay Czar, the authority's executive director.
"This is the best time to buy a home in the state of New Mexico,"
he said, pointing out home prices have dropped and interest rates are low.
