Under the American Recovery and Reinvestment Act of 2009, a tax credit of up to $8,000 is available for first-time home buyers. However, Alpharetta, Georgia-based ""Metro Buyers Group, LLC"":http://www.metrobuyersgroup.com, argues that the problem for most first-time buyers is the down payment, and the new tax credit is only available to purchasers that have already closed on their home.
To circumvent this problem, Metro Buyers Group says it will purchase the first-time home buyer's tax credit prior to closing, allowing the borrower to use the funds for their down payment at closing. According to Metro Buyers, its program, which is available through several mortgage lenders throughout the Southeast, will allow more potential home purchasers to take advantage of the tax credit.
David Abrahamson VP of Southeast Operations for American Home Key Mortgage Company, called Metro Buyers' approach, ""a legitimate monetizing program that actually works.""
As part of the stimulus package approved by Congress, one of the goals of the tax credit is to jump start home sales. The Metro Buyers Group Tax Credit Purchaser program was created to encourage hesitant home buyers to get off the fence and purchase, the company said.
Metro Buyers Group currently supports the housing markets of Georgia, Florida, South Carolina, North Carolina, Virginia, Tennessee, Alabama, Mississippi, Louisiana, Texas, and Arkansas. The company says it has plans to expand its tax credit program to additional states in the future.
Chad Lane with Re/Max Greater Atlanta, The Mark Spain Team, said, ""I have seen the program 'take off' for both new construction homes as well as the re-sale market. We are anticipating a record number of closings for 2009.""
With home inventories at record-high levels, potential home buyers currently have a vast selection from which to choose, and the federal tax credit is expected to stimulate local housing markets and stabilize the effects of the economy, ultimately dwindling down the backlog of properties from rising foreclosures. In order to take advantage of the tax credit a home buyer must close on their home by November 30, 2009, Metro Buyers explained.