NEW NEWS...IS GOOD NEWS...
As I had mentioned in a previous post, the $8,000 First Time
Homebuyer Tax Credit is great but how do first time home
buyers make the purchase if their funds are limited. The new
down payment guidelines under FHA is 3.5% and Conventional
is 10% (up from 5% earlier this year).
No one disputes financing guide lines needed to be tightened.
But if you are going to throw out a carrot to this segment of the
home buying community to help stiumulate the housing market,
it only makes sense (if you have worked in real estate long enough)
to know these buyers are usually young and have limited funds.
On Tuesday, the Federal Housing Assocation (FHA) came to realize
the same thing!
FHA is going to allow home buyers to use the $8,000 First Time
Home Buyer Tax Credit as a down payment. With the assistance of
an approved, lender, buyers will be able to access these funds through
a short term "bridge loan." According to Shaun Donovan, Secretary of
the U. S. Treasury, "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." This new change, in
my opinion, should have an exponential effect going forward on the
number of first time home buyers seeking to be home owners vs. what
we were seeing previously.
Additionally, if you live in the state of Georgia, more good news!
The Governor has signed HB 261 an $1800 tax credit for first time
home buyers. There are a couple of facts to be aware of:
- $1800 tax credit or 1.2% of the purchase price
- Credit spread over a period of three years
- The credit can be claimed one time per tax payer
- You must close on the home between June 1 and November
30, 2009.
Great opportunities abound for the first time home buyer: Historically
low interest rates, selection AND the $8,000 First Time Home Buyer
Tax Credit.....It doesn't get much better than this!!! 
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