May 29th U.S Housing and Urban Development Secretary (HUD) Shaun Donovan announced that the $8,000 tax credit offered through the American Recovery and Reinvestment Act of 2009 can now be used towards the 3.5% down payment OR closing costs for FHA loans! The tax credit currently only could be accessed after the purchase of the home, but this new revision will allow first time home buyers to immediately put their credit to work towards the purchase of the home. This new found flexibility will open up doors for even more first time home buyers who were struggling to save the initial 3.5% down payment and additional closing costs.
Currently the FHA allows parents, employers and other government entities to contribute towards the down payment, but now with the tax credit potential home buyers will have yet another source to help bridge the initial expenses to purchase a home. I know I'm not the first, but the more REALTORS that write about it, the further this great new will travel. Please visit www.hud.gov/news/release for more information. Sing it from the roof tops! We can make this market great with good deals and better mortgage products!