A handful of states have starting offering advances/loans against the $8k first-time home buyer’s credit for those buyers who do not have the money for a down payment.  There are many more states looking into adopting similar policy.  What a super idea! 

Even the Federal Housing Authority is getting into the game.  They just recently announced that buyers can get a short-term loan to help buy a home and repay it a few months later after the buyer files an amended tax return and receives the credit.

Although here in North Carolina we have both the North Carolina Housing Finance Agency and House Charlotte which offer government sponsored down payment assistance program for first-time home buyers however these programs have eligibility requirements; maximum household income, maximum sales price and geographical limitations.  These requirments limit the number of buyers that can take advantage of the program. 

A first time home buyer is defined as someone that has not owned a home within the last 3 years.  There is definitely a group of first time home buyers in NC that don’t qualify under the government sponsored programs for down payment assistance and have no other alternatives for funding the down payment.  

I think NC should take a hard look at lending against the $8k credit in order to get more buyers in the game.  More buyers means more sales, more sales means quicker turnaround and quicker turnaround means…well you know the rest!

Ciao Bella