First, here’s a great video on the First-Time Homebuyer Tax Credit. The video does NOT go into detail about the new FHA down payment caveat below. Call me for more info as this new FHA program rolls out..
New Homebuyers can look forward to using the new First Time Homefuyer Tax Credit as a Down Payment .
Under the original Federal proposal, borrowers would have to wait unti they received the funds back from the IRS. It’s no surprise that waiting for the taz credit will knock a few buyers out of the park.
Secretary of the Department of Housing and Urbad Development, Shaun Donovan, said the Federal Housing Administration (FHA) 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. ….<strong>read more</strong>
“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.
What a great gift. This willenable thousands of people the opprtunity to buy a home now and still possibly get some seller assistance.
There can never be such a great combination of benefits as this, Low rates, seller assistance, AND $8,000 from our friendly government, So, what are you waiting for? Should I get a realtor to work with you in your area? Let me know. Do not delay.
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.
Stay tuned for additional details as the program rolls out. Given the tax credit itself is suppose to fade out at the end of 2009, FHA will no doubt get moving on this rather quickly. How unfortunate it wasn’t done earlier. But it should still help spur summer home sales.
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