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More Good News for First-time Homebuyers

By
Real Estate Agent with Atlantic Wave Services

On May 29, the Department of Housing and Urban Development (HUD) announced that FHA will allow first-time buyers to apply their up-to $8,000 tax credit toward closing costs when buying their home. (To see the news release, go to http://www.hud.gov/news/release.cfm?content=pr09-072.cfm.)

Purchasers will still have to pony up 3.5% out of their own pocket for the down payment. But they can take whatever money they would receive in the form of the tax credit and apply it toward closing costs or add it on top of the 3.5% they’ve already put down.

Closing costs can be a deterrent to homeownership, so this is good news.  Of course, it’s a government program, so there are lots of rules to follow. But if you have a qualified lender, they’ll be able to help you navigate the maze and come out of it with a home and maybe even some cash left over in your bank account. Looks like a win-win to me.

Tiny Varner is a licensed Realtor© in Virginia, Maryland, and the District of Columbia. She loves her job.

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