Finally a good thing happens in New York State.  Today Governor Paterson announced a Federal Income Tax Credit for First Time Home Buyers.
This is great news for buyers and sellers alike. With the expiration of the $8,000 credit on November 30th, NYS came through with what I believe is a great program.  Basically the program allows a first time buyer (the definition of a 1st time buyers is the one used by SONYMA) to claim a tax credit equal to 20% of their annual mortgage interest cost. The program is called “The New York State Mortgage Credit Certificate”. This program remains in effect as long as the buyer lives in the house as their primary residence.

Now here comes the tricky part:
There are income limits and home price limits that follow the SONYMA Program guidelines. Also, this program can’t be used in conjunction with SONYMA.  Finally, be aware that you need to get your certificate through an approved bank. As of this writing, that list was not updated in the government’s website.

Contrary to popular belief, this program will have an impact on the 1st time buyer since the income and price limits are actually quite reasonable. As an example:
A 3+ Person Household income limit in a non-target area in Albany County is $85,215 and the price limit for the house is $273,050.

But overall, I’m quite pleased to see that NYS is doing something for the first time buyers. Now if President Obama would extend the $8,000 Tax credit, then we would be all set.

For more information visit http://nyhomes.org/index.aspx?page=898