Many qualified new home buyers today are struggling to come up with a down payment to purchase in today's market today. There is great news fresh off the presses that helps FHA buyers. Shaun Donovan, Secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment.
Donovan’s remarks came in an address to several thousand Realtors® gathered this morning at The Real Estate Summit: Advancing the U.S. Economy. Secretary Donovan said that important changes, which the National Association of Realtors® has been calling for, will help consumers purchase a home. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table. Again, this only applies to new home buyers, make sure to consult your tax adviser about this new change before you proceed with your purchase. If you would like to search for properties for sale in Santa Clarita go to your Santa Clarita First Time Home Buyers search. Just click on the buyers link to get your free no obligation Santa Clarita home search started.