Proposal: The $8000 tax break as a downpayment - Incentive to Concord NC buyers?

It will be great if it happens. So strange that is was put out there and then retracted immediately with the right hand not knowing what the left was doing!

Hi TO, It will be interesting to hear which way this goes. We are still waiting to hear if it allowed by FHA.  If it is, it will be great news for homebuyers.

Really, this was the best way to do it in the first place. We already have this program near us, though only working for conventional loans since FHA renigged on its Mortgagee Letter. But they have promising comments about it!!

Hi Tony~ I wish that this would become a reality!  It's just one of those things that we just have to wait and see, and then even then we have to wait and make sure they don't change their minds again :)

Hi Tony....per Jeff Belonger this is not going to happen.  On FHA loans, the 3.5% still has to come out of pocket or via gift.  But they are allowing lenders to use the $8000 for second mortgages and closing costs.  I'm going to reblog his post, there has been so much misinformation that we are all a little confused.

Tony,

This news item got some of my buyers excited...we have to take a really close look at how and where this can be applied. I told my buyers they still have to come up with the down payment --- but certainly, they may have a bit of a break when it comes to applying the credit towards closing costs. At least, they're thinkng about it more seriously, and are getting off the fence.

If I understand correctly, this has actually happened. One can now use the $8,000 as a down payment. Also don't forget that $1,500 federal tax credit for home improvements.