Buying a Home in Florida for the First Time? Take Advantage of Tax Credit Program!

Are you buying a home in Florida for the first time? Do you know that there is a tax credit program for first-time home buyers like you?

First-time home buyers in Florida may take advantage of this state-run program which started in 2005 and many locals are not familiar of it, until recently, reports Sun Sentinel.

The Florida Housing Finance Corp. reportedly offers first-time homebuyers some money back in the form of tax credit, annually, depending on the paid interests on their mortgage. The outlet notes that the tax credit received from the program through the course of the loan--even if the term loan is set for 30 years--- may be up to $2,000 yearly.

Cecka Rose Green, communications director of Florida Housing Finance, told the outlet that low to moderate income homeowners may apply and if approved, could claim up to 50 percent of mortgage interest as a tax credit on their income tax return. "It's a $2,000 reduction, dollar for dollar. It keeps money coming back to homeowners," said Green.

Adam R. Cohn, branch manager of Standard Mortgage Co. of Boca Raton, also explained that this program is beneficial most especially for lower income earning applicants. "The beauty of the program is that homebuyers can use that income to qualify for a loan, that helps buyers qualify for a higher mortgage," Cohn added.

Aside from having the tax credit program for locals in Florida, pertinent reports and data may be useful to aid you in your decision to home ownership since many areas in Florida are unaffordable for homeowners.

Miami is included in the top 5 least affordable housing markets in 2014 based on the Mortgage Affordability Report of Realtor.com. Data collected revealed that Miami may be more unaffordable this year. In a study by RealtyTrac, the Palm Bay-Melbourne-Titusville area home price appreciation in 2012-2014 outpaced wage hike by 62 times, as reported on RISMedia.

So if you are renting, it would be a wise move for you to settle down especially if you will be living in Florida for quite sometime. In the recent study which Zillow conducted, the national 2014 Q1 median Breakeven Horizon between renting and buying is only 2.1 years. It means that if you will be staying for about 2.1 years in the same location, you should buy a home instead because the cost of renting will supersede the actual cost of buying it after that breakeven horizon. Furthermore, several areas in Florida even have a lower Breakeven Horizon than the national average: Arcadia (0.8), Melbourne (1.2), Miami (1.2) and Naples (1.0).

Another good news for homebuyers: Even though it is already spring, mortgage rates are still low. In fact, the recent mortgage rates based on Freddie Mac Survey even showed a dip in the values. Lenders reportedly offer 3.66% on the average for a 30-year fixed home loans, notes LA Times.

So, for Florida locals, the stars and the stats are all aligned to accomplish your goal to homeownership, fast and soon.