FHA to allow use of 8000 tax credit

Mortgage and Lending
In a move that the NAR has been lobbying for, FHA today announced that it would begin allowing its lenders to let first time home buyers use the $8000 tax credit as a down payment on a home.

HUD Secretary Shaun Donovan made the announcement during his address at the 2009 REALTORS(r) Mid-Year Legislative Meetings and Trade Expo being held in Washington, D.C..

“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. 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. FHA will be publishing the details shortly.”

This has enormous implications for the housing market

Comments (5)

Laura Warden Nordin
Century 21 Camco Realty - Albuquerque, NM
30-year Top Producer in Greater ABQ Real Estate

Is this for real? Can you give a source to go to so I can document this for my buyers? This should be great news fi it really pans out...

May 12, 2009 02:39 PM
Monrovia, CA

Here is one of the links to the story


This is a great step to move forward into an already hot market

May 12, 2009 05:05 PM
Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

This is an outstanding development which could really make a difference in our market where many people have difficulty scraping together the funds to do their deal.  Thanks for the update.

May 13, 2009 12:55 AM
Deborah Lint
Realty Associates - Meriden, CT

I was so excited yesterday when I read this news. Now we just need to get the word out. So many don't even know about the tax credit available. 

May 13, 2009 04:27 AM
Rosalie Cramer(2.5% Real Estate Direct)

I think all agents need to run a press release on this one.. This is huge..   They should of done this in the beginning. but I will take it... We should see homes move now.

May 13, 2009 04:33 AM