You CAN Buy Your First Home With VERY LITTLE Money Down.
Hot Off the Presses: US Housing and Urban Development Secretary, Shaun Donavan, Announces That Home Buyers with FHA Insured Home Purchases Can Apply $8,000 Tax Credit Toward Down Payment and/or Closing Costs!
All those first time home buyers who are having trouble coming up with the 3.5% required down payment + closing costs for a Federal Housing Administration insured loan have been offered a hand. They can now use their American Recovery and Reinvestment Act of 2009 tax credit of up to $8,000 for the purchase of their first home if they meet the income/price/residency requirements. Check out http://www.hud.gov/news/release.cfm?content=pr09-072.cfm for more details.
Prior to today's announcement the credit was applied only after filing 2008 or 2009 tax returns with the IRS. The new development allows state Housing Finance Agencies and some non-profits to "monetize" the tax credit, depending on the mortgage amount, providing the buyers with down payment and/or closing costs. If they qualify, borrowers can use the credit now, or they can wait until filing tax returns later.
There will likely be several bumps in the road while this plan is being implemented. However, the reward for first time home buyers (anyone who has not owned a home in three years) will outweigh the obstacles. This ruling could reverse, but keep your eyes open for how/when the plan will be implemented. As of now, this tax credit expires at the end of November 2009.
The clock is ticking: Share the word.
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