Florida homebuyer loan program too late, other issues

Friday, July 3, 2009

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First-time homebuyers in Florida can now receive up to $8,000 up-front to be later repaid by the tax credit.

BAY AREA (Bay News 9) -- For those looking to buy their first home, Florida is offering a new incentive which started this week.

The state's Homebuyer Opportunity Program is designed to give first time home buyers up to $8,000 up-front to be repaid with the money earned from the federal tax credit.

"That would be a great incentive for me to have those eight thousand dollars," first time homebuyer Ricardo Anderson said, "Because that could pretty much cover most of the down payment or at least closing costs of the home."

The only issue is that right now it's nearly impossible to get that loan. Although the program is up-and-running, Realtors are complaining that their clients can't access the over $30 million in the pot.

Realtor Penny Herman says the program could reinvigorate Florida's housing market if done right. But, he says, lawmakers designed the program for the money to be doled out by local affordable housing coalitions, which specialize in helping only low-income homebuyers.

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So even though buyers with incomes up to $75,000 a year qualify for the up-front loan, they make too much to get coalition assistance.

"It seems like right now someone's put the cart before the horse, the cart being the money, the horse being the way to get the money," Herman said, "So, as a Realtor, I would love for someone to figure it out, but it has not been figured out.

The programs funding will not even begin to materialize until next month, a late start considering the tax credit program will expire November 30.

Some Realtors say the better option would be to give lenders a way to access the funding when they write mortgages. This would allow new buyers to re-pay their lender directly when they get their tax credit money.