If you qualify as a First Time Home Buyer – meaning you have not owned a home in the last three years – there was an exciting announcement made on May 12, 2009 by the Secretary of the U.S. Department of Housing and Urban Development.
You are probably aware that as part of the stimulus plan, Congress passed legislation that provides up to an $8,000 tax credit for first time home buyers who purchase a home between January 1, 2009 and December 1, 2009.
This was great news when it came out.On May 12th, the use of the tax credit just got better.The Secretary of the U.S. Department of Housing and Urban Development has specifically stated that, “the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment.”According to Secretary Donovan, “FHA approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans.This will allow eligible home buyers to access the funds immediately at the closing table.”
This is huge and could be a tremendous help to First Time Home Buyers.In the Chapel Hill Real Estate and Durham real estate market, this covers FHA borrowers up to a $334,000 purchase.If a first time home buyer uses the $8,000 tax credit as closing costs, it could take their closing costs down to ZERO.That is awesome news!
If you or someone you know someone could benefit by this information, please pass it on.