Great news for First-time Home Buyers! Now they can actually get their $8,000 tax credit when they buy their home.
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.
"We 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," said Donovan, secretary of the U.S. Department of Housing and Urban Development today in Washington, DC.
Previously, buyers could receive the tax credit only after they filed their tax return, which meant they would have to come to the closing table with down payment. The National Association for Realtors has been calling for a change.
Source: NAR, May 12, 2009
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