This was just released by the Washington Realtors association.  I will post more news as this is finalized.  What a great opportunity this may be for first-time homebuyers!

OLYMPIA, Wash. - The Senate Ways and Means Committee last night unanimously approved a measure designed to help first-time homebuyers come up with a down-payment.  The committee adopted the measure as an amendment to the proposed Senate biennial operating budget.

The proposal would make the $8000 federal tax credit for first-time home buyers available at the closing of a home sale instead of when a buyer files a tax return. Homebuyers would repay the $8000 after filing for and receiving a tax refund. The amendment creates a Tax Credit Advance Loan Program and authorizes the State Treasurer to deposit $25 million in a financial institution giving it the ability to open a line of credit to the State Housing Finance Commission to provide the down   payment loans. The deposit would not deplete state funds, but would provide liquidity for the financial Institution to lend its own funds.
 
The program is the first of its kind in the nation and would work as follows:

• The State Treasurer’s Office would make an off-setting deposit in an FDIC-insured short-term
  account with a selected financial institution. The investment would earn a low interest rate to
  stay fully insured under federal guidelines.
•  Realtors and other stakeholders back the loans with funds to provide security against losses.
• The financial institution provides the Washington State Housing Finance Commission a line of
  credit to advance up to $8000 to qualified first-time home buyers for a down-payment.
• Buyers repay the advance loan after filing for and receiving the tax credit.

            The amendment is the result of the efforts of the Washington REALTORS®, Washington State Treasurer’s office, and Washington State Housing Finance Commission. State Treasurer James McIntire wrote the budget proviso and is helping to advance the measure through the state legislature.   
             The goal of the program is to get the money to buyers efficiently and return the federal refund quickly so that the HFC can turn it around to provide more assistance.  The funds may revolve as many as three times before the tax credit expires, reaching up to 9000 first-time homebuyers.  These “bridge loans” would expire at the same time as the federal tax credit, on November 30, 2009.  All of the bridge loan funds return to the state system by early 2010 to use for capital projects in 2010-11. 
  

April 17, 2009