May 29, 2009
Good News for Homeowners the $8000 Tax Credit can be used with FHA loans to offset costs
Well it’s official….for the 3rd straight month the Consumer confidence level increased. What does this really mean to you? It means that people are becoming more optimistic about the future and believe the worst (recession) is behind us now.
And just today HUD announced their decision on using the $8000 tax credit as a bridge loan or down payment.
The American Recovery and Reinvestment Act of 2009 (Recovery Act) provides for as much as an $8000 tax credit to qualified first-time home buyers. But now the rules have changed again, and FHA Lenders can use the $8000 tax credit to help offset some of the cost of purchasing the home upfront, and not wait for a refund. Certain rules and restrictions apply.
“FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent. The loans can’t be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning,” according to REALTOR Magazine.
You want to be careful and talk to your lender. Don’t believe everything you hear, as I have already received an unsolicited email from a Lender that was misleading at best.
Thesa Chambers said,
May 30, 2009 @ 10:39 am
I spent a lot of time reading on this one and talked to a couple lenders – the key here is for your buyer to make sure they are using an FHA loan, and a well qualified lender – not all will be able to do this from what I read. There are a few things the buyer must be able to prove such as not tax judgments and a couple forms to complete – but it is a great way to be able to use these funds right away. I bet your buyers for Banning, Whitewater and all of California will be thrilled… and with FHA being the easiest way here in Oregon to purchase a manufactured home (mobile home) it will be a pretty popular product.