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HUD Will Now Allow First Time Homebuyers to Apply $8K Income Tax Credit Toward Purchase Costs

Our US Housing and Urban Development Secretary Donovan Announced on May 29, 2009 ~

that the Federal Housing Administration (FHA) will allow homebuyers to apply the $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home.

Their stated idea for this change is to help stabilize the nation's housing market by stimulating home sales across the country.

Currently, borrowers applying for an FHA-insured mortgage are required to issue minimum down payments of 3.5 percent. Buyers still must issue the mandatory 3.5 percent down payment, but the tax credit now can be used as an additional down payment, or for other closing costs, which can help lower principal balances and monthly payments.

As Realtors and business people, we support this change and will encourage our clients, some first time homebuyers, to take advantage of the excellent opportunity.

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If you want information about Orange County homes and properties, please contact us. Thank you.

Harrison K. Long, Explore Group Properties, Coldwell Banker Previews, Irvine, CA.

www.BuyersExploreHomes.com ~ www.ExploreTheOC.com

Posted by Harrison K. Long, REALTOR, Broker, expert negotiator on 06/03/2009 10:21 AM

Comments (4)

FIRST TIME HOMEBUYERS TAX CREDIT 2009 in the Home Buying Channel

fha loans, hud loan programs, home buying, home affordability, first time homebuyers, homebuyer tax credits, homebuyers, home loans

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4 Comments on HUD Will Now Allow First Time Homebuyers to Apply $8K Income Tax Credit Toward Purchase Costs

JUN

That is really amazing..now if they would stop raising the rates...we would have the perfect storm.

This is a big yahoo!!!! Maybe this will help-- then the domino effect can start in our housing market!

This sounds great & I hope that get this completed & made available to first time buyers soon!!!

Konnie .. Thanks for your positive comment. I am pleased about the HUD statement and clarification of confusion that it will allow FHA loans where buyers use their $8K income tax credit for down and closing costs.

Next question is when the lenders have have these programs in place, considering that the $8K credit expires Nov. 30, 2009.

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