Florida Mortgage Industry Pushes for Tax Credit as Down Payment

An alliance of Florida consumers, lenders, realtors, and builders said on Friday that they will aggressively petition state leaders to allow first-time home buyers to use the new $8,000 federal tax credit as upfront cash for a down payment - a move they say would spur Florida’s sluggish housing market and stimulate the state’s lagging economy.
In fact, the group said in a press statement that the economic impact of this type of down payment assistance could reach into the billions and could benefit an estimated 8,000 to 12,000 prospective first-time Florida home buyers.
Spearheaded by the ""Consumer Federation of the Southeast"":http://www.consumerfederationse.com (CFSE), a nonprofit consumer advocacy group, the coalition hopes to convince Gov. Charlie Crist and other top government officials that Florida needs an innovative incentive strategy to convince first-time home buyers that now is the time to purchase their American dream. The alliance wants the state to provide prospective first-time home buyers with up to $8,000 in down payment and closing costs - an amount equal to the federal tax credit, which is awarded only after a real estate transaction is completed.
Joining the CFSE in this new coalition are the ""Florida Home Builders Association"":http://www.fhba.com, ""Florida Bankers Association"":http://www.floridabankers.com, the ""Florida Association of Realtors"":http://www.floridarealtors.org, and the ""Florida Credit Union League"":http://www.fcul.org.
Walt Dartland, executive director of the CFSE, commented, ""This is vital to our economy and it puts the American dream of homeownership within reach of thousands of Floridians. We are confident this can be accomplished without costing Florida taxpayers a dime.""
Dartland said the group will meet with Gov. Crist and others to seek a ""Florida Formula"" to advance consumers the tax credit to use as a down payment - an initiative that some other states are also considering.