This is HOT off the press, HUD just released a statement that reports that FHA is NOW going to allow the 2009 Tax Credit of $8,000 to be "monterized" at the closing table so that first time homebuyers can use it as part of their down payment!!!!! This has been a continuous effort on the part of National Association of Realtors who have been pleading with goverment to make this a possibility and help get buyers into homes. Read the story from the Association here.
The money is being borrowed (just like an advance on your paycheck) but it is still $8K you didn't have in the first place. If buyers fail to pay it back from refunds at tax time (without interest) it will have be added to the current mortgage with interest.
How buyers are going to go about this is, once they identify their property of purchase with contract, they need to contact their CPA to file a ammended tax return with a 5405 form who will then send it off to the IRS. Once received, the money will be wired into a designated bank account within 7-12 business days and will be considered verifiable funds that all lenders will accept.
So if you have been hesitating about buying, STOP! It does NOT get any better than this. Call your lender or your trusted Realtor today.
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