Reimbursement for Tax Refund
The OHFA is pleased to announce that the tax refund is no longer an obstacle for participants in our programs for purchasers of homes.
What is the tax refund?
The tax refund is about OHFA’s programs for purchasers of homes. Basically, the tax refund is a tax or charge that a federal home buyer may have to pay if you 1) sell the house financed by OHFA within the first nine years after the date of purchase, 2) obtained a net gain in the sale of the home, and 3) than the household income limit established by OHFA at the time of sale. All three conditions must occur at the time of sale to enforce a potential tax obligation for repayment.
The Internal Revenue Service (IRS) requires the tax refund because of the OHFA mortgage is financed through the sale of mortgage revenue bonds tax free. The provision helps ensure compliance with the stated purpose of the OHFA to help purchasers of homes whose income is low to moderate.
Reimbursement program
Beginning March 1, 2006, the OHFA will reimburse the buyers of residential real amount of tax refunds paid to the IRS on loans closed on or after the effective date.
In the past, the term “tax refund” was that prospective buyers of homes will think twice before buying a house. However, after extensive research, OHFA has determined that very few people have had to pay a fine for selling their homes soon. By providing assistance in the isolated cases that require a tax refund, the OHFA helps build stronger communities by allowing residents of Ohio to acquire safe housing, quality, with modest confidence.