Tuesday, June 30, 2009

More Good News For 1st Time Homebuyers: Use Your Tax Credit at Closing

Now first-time homebuyers have even more incentive to purchase. Instead of waiting for claim the tax break of up to $8,000 after the purchase you can use it to help with down payments and closing costs.

The process is done through a short-term loan for qualified buyers. It’s not available in all states but in Colorado the program has been named CHFA JumpStart.

The CHFA JumpStart is a 0% second mortgage for the lesser amount of 3.5% of the first mortgage or up to $6,000, plus an administration fee of $350. You’ll repay this loan once you receive your tax credit next year. If it’s paid before June 30, 2010, $250 of the administrative fee will be applied to your payoff. BUT, if don’t pay off the loan by this date, the rate jumps to 8% with a 10-year repayment term. If you don’t think that you’ll be able to meet the payoff deadline CHFA may have other programs to assist you.

The CHFA JumpStart is only available for homes purchased closed between April 1, 2009 and Nov.30, 2009.

There are income and purchase price limitations. View the limits in your county on CHFA’s website.

For example, the purchase price in Denver Metro is limited to $324,300 the household income limit for 1 person = $60,800; 2 people = $76,000; and $87,400 for 3 or more people.


  1. Hi there! I think it's great that the CCU is reaching out to people with a blog, but I noticed typos and layout errors in this entry. It would be a much better (and more trustworthy!) resource if posts were checked for such errors before publishing.

  2. thanks. I appreciate your comment. I usually try to read through before posting, but you know how it is...things can get missed.