This morning during the NAR (National Association of Realtors®) Mid-Year Legislative Meeting in Washington, D.C., HUD Secretary Shaun Donovan said that the Federal Housing Administration is going to begin permitting its lenders to allow 1st Time Home Buyers to use the $8,000 tax credit (originally provided in the American Recovery and Reinvestment Act) as a down payment.
Previously, most Buyers wouldn’t receive the credit until after they filed their tax return, and as such, it was proving to be a deterrent in keeping some people from using the credit. NAR has been actively pressing 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 US 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.
For the full story, go HERE.
C O R R E C T I O N / U P D A T E:
I just came across this greatly informative video on Facebook from my good friend, Ken Cook, with Novation Mortgage in Marietta GA. Evidently there is some misinformation coming from the Feds regarding the use of this credit as a down payment. Fancy that!
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Rich Jacobson is a licensed real estate professional providing knowledgeable empowerment and relentless representation for his clients of residential properties and vacant land throughout all of Kitsap County WA and portions of Pierce, Mason, and Jefferson Counties. You can also find him at KitsapLife.com and Crabbing in the Hood, or e-mail: email@example.comShare on Facebook