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Breaking News: First Time Home Buyers Can Use $8k Tax Credit as Downpayment!

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment.

Donovan’s remarks came in an address to several thousand REALTORS®, including 130 from Michigan, who are in Washington D.C. this week for the annual REALTORS® Midyear Legislative Meetings & Trade Expo.

Secretary Donovan said that important changes, which the National Association of REALTORS® has been calling for, will help consumers purchase a home. “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.

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This entry was posted on Thursday, May 14th, 2009 at 7:18 am and is filed under Buyer Information, Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. Richard Stabile Bergen County Real Estate said at May 21st, 2009 at 9:48 pm

   Using a FHA loan with 3.5% down, it is a compelling reason for a buyer to step up. Along with low rates, lower prices people should take advantage of this market.

2. Kristy Dunnigan said at June 7th, 2009 at 11:01 pm

   Any luck finding a lender doing this yet?

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