Thursday, April 9, 2009

Work-arounds and Free Money

Mortgage crisis update: we figured out that we can use the first-time homebuyer tax incentive to cover the additional funds that we need. Luckily, Eddie hadn't filed his taxes yet, so once that money gets direct-deposited, we just need to send our bank a copy of his bank statement showing the additional funds. Crisis averted!

Contractor crisis update: the contractor that we originally planned on using is going to use a partner's company to get validated. Maybe it will work...?

Additional info for home buyers: we're applying for a grant from St. Luke's Hospital and Mount Saint Mary's College - the two biggest employers in Newburgh. It's a homeownership incentive program to revitalize the neighborhood around them.

If we had been smarter, before even looking for a house, we would have enrolled in the Rural Opportunities Inc. Homeownership Assistance Program for First Time Homebuyers. After attending a three- session Homebuyer Education Course, we would have been eligible for a slew of grants that would have assisted in downpayments, closing costs and for half the cost of the mortgage. They recently merged with Pathstone, for those interested. But, since we are already in the process of buying a home, we don't qualify for the program or the grants.

And finally, since the house is in a historic preservation district, we qualify for NY State and Federal Historic Preservation Tax Credits. This means we get back 20 to 30% of the renovation cost as state or federal tax credit.

2 comments:

  1. Be sure to get all work you want to do approved (Certificate of Appropriateness from the local (City of Newburgh Architectural Review Commission) and state (NYS Office of Historic Preservation)BEFORE you proceed. Ohterwise you could loose tax credit eligibility.

    Welcome to Newburgh!

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  2. Dear Anonymous:
    Thanks for the tip! There is so much to keep track of, it's great to get reminders.

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