FHA Tax Credit Pilot Program Offers Incentives to Home Buyers

March 19, 2012 — 1,115 views  

The Federal Housing Authority (FHA) created the Tax Credit Pilot Program to help people complete three types of transactions. Using the FHA Tax Credit Pilot Program allows homeowners to consider options as they make important investments.

People can purchase new homes, complete major property renovations or perform minor home improvements through the assistance this initiative offers. For example, a person may own a home that is in desperate need of repair, and can use the program to get the financing necessary to complete those renovations. This allows homeowners to raise their property values.

People must meet federal requirements to qualify for the program's benefits. Section 223(f) outlines these guidelines, which include requiring permanent financing of newly created or substantially repaired projects that are complete or have reached maximum occupancy. It also stipulates avoiding projects that receive project-based vouchers or other forms of rental assistance. These regulations may appear limiting, but have been created to eliminate potential fraud risks.

The FHA will begin offering these tax credits in spring 2012. However, the administration may consider ways to provide similar benefits to consumers in a more expedient fashion.