Home Buyer Credit & Employer Assisted Grant

 
 We have outlined 4 different credits or grants that are available to homebuyers
$8000 First-Time Home Buyers Tax Credit Expiring June 30, 2010
$6500 Homebuyers Tax Credit for Persons Owning Their Home for 5 Years
GMHF (Greater MN Housing Finance) Downpayment Assistance
Perham HRA's Employer Assistance Fund
(see below)

$8000 First-Time Home Buyers Tax Credit Expiring June 30, 2010
 
      $8000 Tax Credit at a glance:
  • It  is equal to 10% of the qualified home purchase price, but the credit amount is limited to $8,000.
  • It is a true credit to home buyers but the buyer must remain in the home for 3 years.
  • This credit is refundable, which means any credit not needed to reduce taxes will be refunded.
  • It is only for “first time” home buyers...someone that hasn’t owned real estate in the last 3 years.
  • It is available for homes with purchase agreement signed by April 30 ,2010 and closed by June 30, 2010. 
  • Full credit is available to those making $125,000 or less or $225,000 for joint filers.

$6500 Homebuyers Tax Credit for Persons Owning Their Home for 5 Years
 
          $6500 Tax Credit at a glance:

 

 

  • It is equal to 10% of the qualified home purchase price, but the credit amount is limited to $6500.
  • This credit is refundable, which means any credit not needed to reduce taxes will be refunded.  
  • It is available for homes with purchase agreement signed by April 30, 2010 and closed by June 30, 2010. 
  • Full credit is available to those making $125,000 or less or $225,000 for joint filers.
  • It is a true credit to home buyers but the buyer must have owned and occupied their home for at least 5 years out of the past 8 years

     GMHF (Greater MN Housing Finance) Downpayment Assistance

    $2500 Grant at a glance:

  • Available as downpayment assistance to families purchasing new or existing homes in Greater MN (rural or city).
  • GMHF will match local downpayment assistance funds, up to $2,500 per homebuyer.
  • Downpayment assistance funds are provided through an approved local sponsor, in the case the City of Perham.  Call Mary at 218-346-4582
  • The acquistion cost limit of the home may not exceed current GMHF limits ($131,000 in 2003).
  • Homebuyers must have incomes below 80% of the statewide median income, adjusted for family size.
  • GMHF downpayment assistance may not be used in combination with GMHF gap funding, unless the match is from an employer.
  • To apply, contact HRA representative at City of Perham  (218) 346-4582

    Perham HRA's Employer Assistance Fund

    GAP Financing at a glance:

    • HRA funds are in form of 30 year 0% interest deferred second mortgage and are due when the home is sold, buyer fails to occupy as primary residence, or first mortgage is satisfied.
    • GAP Financing is utilized for closing costs and to lower the purchase price of the home.
    • This GAP Financing my be used with GMHF grant.
    •  Arvig Enterprises has generously contributed to Perham's HRA making Maximum Fund Available $3,000
      • How to qualify for Arvig/HRA funds:
        • Income Limits of $56,200-$83,200 based on family size
        • Must be employed by business within the City of Perham for at least one year; and be able to obtain a letter of support from your employer.
    • KLN has generously contributed to Perham's HRA.  KNL is providing $5,000 per package with the HRA providing an additional $2,000 for a total of $7,000
      • How to qualify for KLN/HRA funds:
        • Income Limits of $56,200-$83,200 based on family size
        • Must be employed by KLN for at least one year: and obtain a letter of support from KLN.
    • To apply, contact HRA representative at City of Perham  (218) 346-4582