What a Way to Get Your Down Payment!
More good news for prospective homebuyers! The following article is taken directly from the latest news came out of National Association of Realtors®.
Tax Credit Can Be Used for Down Payment
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.
Source: NAR http://www.realtor.org/RMODaily.nsf/pages/News2009051202
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6 Responses to “What a Way to Get Your Down Payment!”
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Keep in mind the press we have seen it is County Specific for now. Alameda and Contra Costa were not on the list.
Thanks Annie for the pertinent information.
We also need to keep reminding our customers that the deadline is the end of November to close escrow.
Thanks!
Brian B.
That is great news for FHA buyers!
Larry
Annie,
That is great news. Yet another reason for buyers to get into the market now. Thanks for the update
Adam
Great News! I have heard some states were offering bridge loans.
Let me get this straight. I am assuming it has to be used in addition to the minimum down of 3.5%, not in place of it.
thank you Annie, more great news for the consumer, what wonderful opportunties for first time home purchasers.The state of the over all economy sure seems to have produced some once in a lifetime “giveaways”