A recent caller asked if the (up to) $8000 first time home buyer tax credit is able to be used if
they choose to use a VA mortgage.
Yes, yes YES. One of the confusing bits of misinformation is that the 1st time home buyers tax
credit can only be used with an FHA mortgage. That is not true. FHA, VA, conventional, land
contract - if you are a first time home buyer and meet the other guidelines you qualify for the tax
credit.
VA mortgages also allow the buyer to ask the seller to pay up to 6% in sellers concessions towards
the buyers closing cost, pre-paid items and tax prorations. (In my experience unless the home that
you are purchasing has reverted to non-homestead status this 6% will cover most of these items for
you.)
One other tidbit about VA mortgages that I recently became aware of: If you are determined by VA
to be at least 10% disabled they will waive the funding fee. (Make your mortgage lender aware of your
disability status and provide him / her with the documentation.)
I hope this cleared up another bit of the confusion and misinformation about the (up to) $8000 first time
home buyers tax credit. Remember, this credit has an expiration date: November 30th, 2009. Don't
dawdle and lose it!
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~Kris Wales~ A partner for your real estate needs in Macomb County MI
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