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How to use your $8,000 tax credit

Submitted by Peter Toner on Monday, 1 June 20094 Comments

Formal guidelines from the Federal Housing Administration …

homebuyers How to use your $8,000 tax credit….  have been issued regarding the first time homebuyer tax credit worth up to $8000. Many had hoped FHA would allow lenders to give the 3.5% down payment to buyers in the form of a 2nd loan on the property.

 

The 2nd loan would have then been paid off when the buyer received their tax credit. Unfortunately, FHA has decided not to allow what they consider a "no down payment" loan.

However, the good news is FHA will allow the tax credit to be used for closing costs and any additional down payment, which can help buyers to obtain a lower interest rate. FHA allows parents, employers and other government agencies to contribute towards the 3.5% down payment.

There are also a number of state housing finance agencies offering down payment assistance loans that can be used to meet FHA minimum down payment requirements. The FHA down payment can also come in the form of a 100% gift as long as it is from a blood relative and the monies need not be paid back.

You can give our office a call and one of our Buyer’s Agents would be happy to discuss your options regarding FHA loan programs! Call 858 551-3311
 

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4 Comments »

  • Costa Rica Retirement said:

    This $8000 tax credit is simply amazing for new home buyers

    - 18 August 2009 at 7:59 am
  • Richard Stabile Bergen County Real Estate said:

    The first time buyer credit coupled with the FHA 3.5% down loan with 620 credit scores and sometimes under special circumstances lower scores is carrying the market. The government is now assuming the risk of getting the market going with these programs. The high end doesn’t have FHA and is dragging. We need something for the high end market to help out.

    - 29 August 2009 at 7:42 pm
  • Ralph D Bredahl said:

    It has been a real boost to the sales in Arizona. It would be great if it gets continued

    - 3 September 2009 at 1:59 pm
  • Staten Island Real Estate Agent said:

    The first time home buyers credit is a great thing for our countries real estate market. We need a spark as a real estate market and this has helped alittle. I am glad they extended it.

    - 11 November 2009 at 2:31 pm

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