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FHA SAYS $8000 TAX CREDIT MAY BE USED FOR DOWN PAYMENT!!

By
Real Estate Agent with Red Rock Real Estate (435) 632-9374 UT DRE# 6541633-SA00

 SDThis is more great news for BUYERS!!!

Sorohan, Mike
HUD Secretary Shaun Donovan yesterday said FHA would permit lenders to allow first-time borrowers to use the $8,000 tax credit recently put into law as all or part of a downpayment on a home. Donovan's remarks at the National Association of Realtors' legislative meeting in Washington represented the second major news announcement for HUD this week; earlier this week, Donovan announced that HUD had withdrawn its "required use" provision in final Real Estate Settlement Procedures Act rules.

"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," Donovan said. "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.

Donovan cited estimates by the National Association of Home Builders that the tax credit could stimulate 160,000 home sales across the nation, of which 101,000 could be first-time buyers using the tax credit. Another 59,000 existing homeowners could  buy another home because a first-time buyer purchased their home, he said.

Donovan said FHA will publish details of the plan shortly.

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I, Wanda Kubat-Nerdin at Red Rock Real Estate Utah am responsible for my opinions expressed in this blog. Information herein is deemed to be reliable but not guaranteed and may change due to market conditions. Please do not take my pictures or artwork and use them as your own, they are my property and copyrighted.

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Wanda Kubat-Nerdin is a southern Utah REALTOR® assisting buyers and sellers in in the St. George area, Dammeron Valley, Diamond Valley, Veyo, Central, Hurricane, Ivins, La Verkin, Leeds, Santa Clara, and Washington real estate markets.
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90 E 100 S, St. George, UT 84770

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Comments (4)

Dinah Lee Griffey
Windermere Peninsula Properties - Allyn, WA
Managing Broker Windermere Peninsula Properties

That is such great news. I think this will start heating up the market!-Dinah Lee

May 13, 2009 11:51 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Dinah, Yes, this will help those buyers who are just falling short of their ability to purchase and those who are still thinking they cannot afford to buy!

May 13, 2009 02:44 PM
Mark Artesani
Keller Williams Realty - Fountain Valley, CA
Huntington & Newport Beach, Fountain Valley Homes

Thanks Wanda, I will pass this info on to my circle. Mark

May 14, 2009 12:41 AM
Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

Details, details, details.  We, including loan officers, need those details NOW so we can answer our client's questions.  I almost wish Donavan hadn't made the announcement without first having the "details" in hand and available in "press-kit" form.

May 14, 2009 02:02 AM