I'm finding that more and more of my buyers don't know that there are
still mortgages available that offer 100% financing to purchase homes.
They are soooo psyched when they learn of them. One very popular
program is the USDA Rural Program. I have 2 clients currently buying a
home using this program. Certain restrictions apply and the program is
available until the funds are depleted. Visit: http://www.rurdev.usda.gov/hsf_sfh.html
or Contact Me
for more info.
Qualifications for $8,000 tax credit
- Must use as a primary residence. The home cannot be used as a vacation home or rental property.
- Must be a first-time home buyer, which means you cannot have owned a home for the past three years prior to purchase.
- Cannot purchase a home from a close relative such as your spouse, parent, grandparent, child or grandchild.
- Must make less than $75,000 for a single taxpayer or less than $150,000, if filing jointly.
About the $8,000 tax credit
- Must purchase a home (close and receive title) on or after January 1, 2009 and before December 1, 2009.
- Use as downpayment or closing costs
-- Initially, the tax credit was designed as a refundable credit on
buyers' tax return next year -- either up to $8,000 or 10% -- whichever
came first. Now, a new HUD initiative allows qualifying first-time home buyers to receive these funds upfront
to be used as a down payment or money towards closing, as announced by
U.S. Housing and Urban Development Secretary Shaun Donovan. This has
been referred to as a bridge loan.
- Home buyers must pay the 3.5 percent
-- While the $8,000 tax credit can be used for the down payment or
closing costs, home buyers must still come up with FHA's required 3.5%
down payment on their own.
- FHA-approved lenders, only
-- At this time, only the Federal Housing Administration (FHA) has
issued guidance regarding the monetization of the first-time home buyer
tax credit. Home buyers using FHA-approved lenders can apply the tax
credit to their down payment.
For more information on the $8000 tax credit, review these Q&A's from the IRS
and let's go shopping... ;)