Big Improvement to First-Time Buyer Tax Credit
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Hot off the press from NAR
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.
- $8,000 fast cash for first-time homebuyers (money.cnn.com)
- FHA plans to allow use of tax credit for down payments (seattlepi.com)
- $8K Tax Credit CAN Be Used As FHA Downpayment (hsh.com)
- 8-Point Overview of the $8,000 First-Time Homebuyer Credit (realtyresolve.com)
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Tags: FHA, First time home buyer, First Time Home Buyers Tax Credit
