- Employer-sponsored programs
- First-Time Home Buyer Tax Credit
- Closing cost assistance programs
To give you a better idea of the specific requirements, here is a closer look at each:
It’s true—some employers are creating incentives to help their employees cover down payments and closing costs. In this case, your employer might give you a loan or a grant that is forgivable over time. Your labor union may also help with closing costs.
Any first-time home buyer programs you use will vary depending on your employer and what, if anything, they offer. Most employer-assisted programs are joint efforts with state governments. Before relying on these programs, it is important to speak with HR representatives or managers.
First-Time Home Buyer Tax Credit
The First-Time Home Buyer Tax Credit, which is also working its way through Congress, would provide a $15,000 tax credit for first-time buyers. The program would refund up to $15,000 in tax liability to first-time home buyers retroactively to Dec. 31, 2020.
The tax credit would be like others the IRS gives for certain home improvements and upgrades, such as the Energy Efficient Home Improvement Credit. Many homeowners claim their mortgage interest paid as an annual tax deduction, but the First-Time Home Buyer Tax Credit would be specifically designed to help prospective owners climb onto the property ladder.