Homebuyer Tools, Calculators and Look-ups
In rare circumstances, a
Federal Recapture Tax may be assessed against a CHFA home
loan borrower at the time the borrower sells the home.
Federal recapture taxes only apply to homes purchased with
Tax-Exempt Bonds, like those offered by CHFA. All of the
following conditions must exist at the time of the sale of
the home to trigger repayment of the recapture tax.
- A borrower sells the home within nine years of purchase.
- A borrower sells the home for more than the borrower
paid for it.
- A borrower's household income is greater than the
recapture tax income limits effective at the time of the
Please note: CHFA borrowers will receive
disclosure information at the time of application and a
"Federal Recapture Tax-Method to Compute" form at the loan
closing. This form indicates the federal income
limits effective during the nine years of ownership when the
federal recapture tax may come due if the above conditions
are present. Please save this document. Consult a tax
professional if you have any questions or obtain IRS Form
8828 (and Instructions) for additional information at
www.irs.gov. You may be eligible
to receive reimbursement from CHFA if you are required to
make the Federal Recapture Tax payment.
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