New program allows tax rebates for some first-time homeowners
Published 11:06 pm Thursday, October 13, 2011
A new program in Southwest Louisiana will give some first-time home buyers cash back in the form of tax rebates.
With Mortgage Credit Certificates through the Calcasieu Parish Public Trust Authority, first-time home buyers can have up to 30 percent of their home-loan interest refunded, program manager Steve Harris said.
The program began on Thursday.
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Qualified buyers can receive up to $2,000 a year back in the form of tax rebates — Harris is careful to point back that it is a refund, not a deduction.
“Forget about the reduction of taxable income,” Harris said. “This reduces the tax itself.”
“Ultimately, you put more money in your pocket come tax time or you can go to your employer and decrease the amount they’re witholding.”
And, he said, if the amount of the rebate is higher than the amount the buyer owes in taxes, the rebate can be rolled over.
The program is available to buyers in Calcasieu, Cameron, Allen, Beauregard and Jeff Davis parishes.
Qualifications include:
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• Houses must be $247,032 or less.
• In Calcasieu and Cameron parishes, one-two member households must make less than $61,600 annually, while households of three or more must make less than $70,840.
• In Allen, Beauregard and Jeff Davis parishes, one-two member households must make less than $55,000 annually, while households of three or more must make less than $63,250.
Although the program is for first-time buyers, previous home owners who haven’t owned a home for three years can also qualify, Harris said.
“One thing has to happen before the economy turns around and that is that housing has to come around,” Harris said.
The program will cover up to $20 million in loans, Harris said. It will last until that money is covered, or for three years.
The rebates, similar to those the Trust instituted in 2009, are funded through private activity bonds, Harris said.
The 2009 program was covered with $15 million in loans and was used on 104 first-time home buyers, Harris said.
The program will be available through First Federal, Progressive Mortgage, Louisiana Mortgage, Mortgage Lending Group and Premier Nationwide Lending, Harris said.
“Any lender can join the program,” Harris said.
• Online: For more information, visit www.trustauthority.org