Use your $8,000 Tax Credit NOW- New guidelines passed this week!

Just In Time to Make Dreams Come True On Friday, the U.S. Department of Housing and Urban Development (HUD) announced that first-time homebuyers using FHA-approved lenders can now get an advance on the $8,000 tax credit created by the stimulus package and apply it toward their down payments or closing costs. This, according to Les Christie of CNNMoney.com, will continue to push demand by first time home buyers. Mr. Christie states a recent study by the National Association of Realtors which shows the $8000 tax credit for first time home buyers has truly stimulated the real estate market. First time home buyers recently accounted for 53% of all homes sold. That reflects a 10% surge in that sector of the home buyers market. It’s anticipated this new incentive will cause another major influx of first time home buyers entering the market to purchase a home

As part of the stimulus package, Congress created a refundable first-time homebuyers tax credit in hopes of helping on-the-fence buyers to take the home-purchase plunge. But buyers couldn't collect the $8,000 credit until tax time, rather than at closing time -- when it's needed. "We believe this is a real win for everyone," said HUD secretary Shaun Donovan in a speech before the National Association of Homebuilders (NAHB). "Families will now be able to apply their anticipated tax credit toward their home purchase right away. What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."

The National Association of Realtors states prior to this action, many buyers were still locked out of the market. Recent changes in the mortgage industry have eliminated most programs which provided 100% financing for home purchases. Allowing family’s immediate access to the use of this $8000 for down payment/closing cost has will lighten the stress on families who struggle to save up for a 4% down payment.

If you have been waiting to purchase your first home, now is the time to act! This program is currently slated to end December 1, 2009. Don’t miss this opportunity to enjoy the dream of home ownership!