The $8000 first time home buyer credit can be used for a buyer’s down payment if a buyer qualifies for the program. Washington State had passed a measure for first time home buyers to use the money towards a down payment, as did a few other states, but now it looks like it’s a “go” everywhere. This is great news, because in Washington State the program had not been implemented as of yet.
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said 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.
Mr. Donovan spoke at the Realtor’s Mid-Year legislative Meetings and Trade Expo Live
According to Donovan, the FHA’s 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.
Stay tuned. As soon as I learn more, I’ll let you know in this blog. Happy house hunting!
Eastside Real Estate Buzz
Aubrey Cohen from the Seattle PI.com had this to say about the $8000 credit being applied towards a down payment:
http://blog.seattlepi.com/realestatenews/archives/169055.asp
Lawmakers, HUD, and the IRS need to get this worked out so buyers can use this money if, in fact, it is available.
[...] first time home buyer because of the stimulus package’s $8000 first time home buyer credit. I’ve spent a lot of time writing about this tax credit on this blog, but many of us who blog about real estate forget about those who already own a home. This is a [...]