First Time Homebuyers- $8,000 Federal Tax Credit May Be Used For Down Payment

UPDATE: The Fed's Have Rescinded This.  At this time you are unable to use the Federal tax credit towards a down payment..For More Information Click Here!  

  Those homebuyers who qualify for the FHA (Federal Housing Administration) loan may soon be able to use the federal tax credit of up to $8,000 as a down payment. HUD secretary Shaun Donovan announced yesterday that FHA lenders are going to be allowed to let first-time homebuyers to use the Federal tax credit, of up to $8,000, towards a down payment. “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 downpayment,” Donovan said. According to Donovan, "the 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." The buyers would repay the loans after receiving their tax refunds. FHA will soon release all of the specific details about the new program.

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-Emily Schuyler, e-PRO

Smart Click Realty

DRE# 01768964