More Good News for Home Buyers!
From an article in REALTOR magazine titled: 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. “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.
Previously, most buyers wouldn’t receive the funds until after they filed their tax return, and that deterred some people from using the credit. 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.”
This move will make it an even better time to buy a home and help further stimulate the housing market. To find out if you can take advantage of this program, contact a reputable lender or a local REALTOR.