$8000 tax credit for down payment? Is it true?
UPDATE: THIS IS WRONG INFORMATION...SEE BLOG ABOUT WRONG INFORMATION
I have had several prospective buyers ask me about using the tax credit for their downayment in the past couple of months. Until now, it could not be done. You could only get the tax credit when you filed your taxes. But, The National Assoc. of REALTORS(R) has been pushing the "powers that be" to allow the tax credit to be used at closing for downpayment assistance. This is great news for first-time homebuyers. The details are due to be released next week.
We've been receiving calls all day about the "announced" ability to use the $8000 first-time homebuyer tax credit FOR DOWN PAYMENT. "
HOLD YOUR HORSES... it doesn't exist.... YET!
HUD Secretary Donovan appeared at a NAR function earlier today, and this is an exact excerpt of his remarks:
"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a downpayment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to "monetize" the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly."
Okay - so what does that MEAN? It means that they are about to "officially" put their stamp on approving the process (and authority) on who/where/why/when a first-time homebuyer can get a LOAN for the $8000 tax credit - to be used as part of the required down payment!
THIS IS HUGE! As soon as the "official" announcement is out, we will get it to you.
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