Tax Credit Used for Down Payment

As reported in Daily Real Estate News 5/12/09

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.

Want more details? Give me a call or email me and we can discuss how you can take advantage of this now!

This entry was posted on Tuesday, May 12th, 2009 at 9:11 pm and is filed under Buyers Information, Financing, Government Housing Programs, Mortgage. 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. burstmode said at May 12th, 2009 at 9:12 pm

   Nothing like encouraging more unqualified people to buy homes.

2. tonylazz said at May 12th, 2009 at 9:54 pm

   Hmm, posting a news item is encouraging unqualified people to buy homes. If you would care to expand on your “shot over the bow” I would be happy to discuss. But please, consider using facts and examples – rash generalizations do not qualify. peace.

3. Tax credit as downpayment approved by HUD « NAPERVILLE HOMES BLOG said at May 29th, 2009 at 1:58 pm

   [...] to apply the $8,000 tax credit towards the purchase cost of a FHA-insured home. The concept was first announced several weeks ago at the NAR mid year convention in DC but was quickly retracted while additional [...]

4. AndrewBoldman said at June 4th, 2009 at 3:13 pm

   da best. Keep it going! Thank you

5. My Naperville Homes Blog » Naperville home buyers – Tax credit as downpayment approved by HUD said at October 1st, 2009 at 12:55 am

   [...] to apply the $8,000 tax credit towards the purchase cost of a FHA-insured home. The concept was first announced several weeks ago at the NAR mid year convention in DC but was quickly retracted while additional [...]

6. Schedule said at October 29th, 2010 at 8:56 pm

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7. Tony Lazzari said at October 29th, 2010 at 9:24 pm

   That is a post from May of 2009. Not sure what change you are looking for, but hey, thanks for reading.

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