Using the $8000 First-Time Homebuyer Tax Credit As a Down Payment
Great news for first-time home buyers. This week, Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development stated that the Federal Housing Administration (FHA) is now going to permit it's lenders to allow home buyers to use the $8000 tax credit as a down payment. Previously, buyers had to wait to file their taxes to take advantage of the tax credit, which hindered some home buyers from buying.
By allowing buyers to utilize the tax credit as a down payment, money will now be freed up for the buyer that would otherwise be needed at closing. This will allow the first-time home buyer to save their money for a rai....
ShareThis
- Login to post comments
- Printer-friendly version
Send to friend
Comments
Please provide additional information
Everything I've read does not support the information you've posted. All the information from HUD and FHA states the purchaser is entitled to a credit for a PORTION of the sale of the house...if you have additional information from credible sources stating the entire portion of the 8K can be used towards downpayments, please advise.
Using First-Time Homebuyer Tax Credits for the Downpayment
The U.S. Department of Housing and Urban Development released the program May 11, 2009. The program is official and is more of a Tax Credit: Short-Term Loan that can be used as the down payment.
Here are some of the program highlights,
The Tax Credit: Short-Term Loan:
Entities that can offer the tax credit advance with short-term loans:
•Federal, state, and local governmental agencies and nonprofit instrumentalities of government, FHA-approved nonprofits, and FHA-approved mortgagees may provide short-term or “bridge loans” secured only by the anticipated tax credit due the homebuyer as collateral.
How the short-term tax credit advance loan works:
•The amount that may be borrowed in this manner may not exceed the anticipated tax credit due the homebuyer based on the computations of form IRS 5405.
•Fees and charges for the tax credit advance loan are not to exceed a nominal amount necessary for preparing and administering the loan.
I am putting together additional information for my team and would be happy to share any information I have.
If you want additional info you can fill out the easy online form at
http://www.First-Time-Home-Buyer-Guide.info
I will be back to you usally in a few miniutes.
need help
Have no idea were to start with trying to use the tax credit as a down payment who do i talk to. Need to figure out what the first step is. can you contact me.
Tax Credit Down Payment
I have been trying to purchase a home recently and from what I have heard the tax credit can not be used as a down payment and the lenders will not front this money before the end of the tax year. Reasons I have heard is that the buyer may default on his or her taxes for the year and owe back more than $8000 and then the banks lose again. Have you heard similar stories?
read this
read this
1st time home buyer
Can I qualify for this if I've filed bankruptcy in the past but currently have no outstanding debt and repairing my credit (now up to 650 FICO)
Is it true that once you
Is it true that once you claim the First Time Home Buyer Tax Credit , you must keep the purchased home as your principal residence for the next 3 years?
Credit as Down Payment
The first tax credit for homebuyers had maximum amount of $ 7,500 and it had to be repaid over a maximum period of 15 years. The second change increased the first time home credit to $ 8,000 and potential home buyers had to December 1, 2009 to purchase a home and take advantage of the home credit. However, recently HUD allows the first time home credit to be used as part of the down payment and/or closing cost. This doesn't appear to be better than the credit that one gets and not have to pay it back. Hud is calling the first time home buyers credit funds extended to the buyer as bridge loan that have to be repaid. If I'm not interpreting this new HUD provision correctly, I would welcome some feed back. Thanks