Tax Credit Can Be Used UPFRONT on FHA loans for Down Payment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, buyers could not file for the credit until AFTER they closed. Donavan delivered the news during an address to several thousand REALTORS® gathered May 12th at "The Real Estate Summitt, Advancing the Economy" at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans to allow eligible home buyers to access the funds immediately at the closing table.
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