Massachusetts Offers Home Buyer Tax Credit Advance

July 14, 2009

The state of Massachusetts recently offered a tax credit of $8,000 to first-time homebuyers. However, as the real estate market still appears dismal, the state had to take further steps to entice residents to purchase homes. For this reason, the governor of Massachusetts, Deval Patrick, has unveiled a new plan that will allow homebuyers access to their tax credit early. The idea is that more will be willing to purchase homes if they have the credit upfront.

The $8,000 will be made available as an interest-free loan to those who buy a home before December 1 and finance it though the state’s affordable housing bank- MassHousing. If the loans are paid back by June 1, 2010 (the date that the credit can be claimed) then the borrower has only to pay back the principal value of $8,000.

Patrick and real estate agencies across the state are crossing their fingers in hopes that this plan will help to restart the housing market.