Homebuyers seeking to purchase a home in a qualified Opportunity Zone can finance rehabilitation costs up to $50,000, an increase of $15,000 over the old rehab maximum amount of $35,000.
Existing homeowners with homes in Opportunity Zones can also use the larger allowable rehabilitation amount for financing to rehabilitate their existing homes. The program permits homebuyers and homeowners to finance rehabilitation costs with their mortgages to repair, improve, or upgrade their home, allowing them to pay for repairs or improvements.
Allowable improvements include connecting to public water and sewage systems, repairing or replacing plumbing, heating, air conditioning or electrical systems.
The new incentive will be limited to the first 15,000 mortgages secured by properties in Qualified Opportunity Zones each calendar year. The incentive will expire on December 31, 2028.
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