Great News! Tax Credit Can Be Used for Down Payment

Exciting news has hit the housing market.  FHA is allowing its lenders to apply the $8000 tax credit to the down payment when purchasing a home for first time home buyers.   Great reasons to buy today:

1)  Interests Rates are Historically Low

2)  Housing Inventory is plenty

3)  Up to $8,000 tax credit

There are also, special programs in certain areas where you can get no money down and closing cost assistance.  If you are in need of that, please inquire.

Here is what Realtor.org had to say:

“Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn’t receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at “The Real Estate Summit: Advancing the U.S. Economy,” at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.”

-Realtor.org  Read More . . . .

Check with your lender on specifics and further qualifications for your situation.

Previous Posts

First-Time Homebuyer Federal Tax Credit Info

First-Time Homebuyer Tax Credit Details