Seems there are different opinions on if it's true. Since NAR was the agency referred to as "press release received from" in over 23 of the articles I saw it will be interesting to see how this plays out.
See below, news from HUD regarding allowing Homebuyers the ability to access the $8000 tax credit for their downpayment. I will share more info as it is received.
YES, it is true! The details of restrictions, etc. should be out soon. This is AWESOME news - please pass it on to anyone that is a first-time home buyer (has not owned a home for three years or more). Here is part of the REALTOR article:
Daily Real Estate News | May 12, 2009 |
Tax Credit Can Be Used for Down Payment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORSÂ® has been calling for the change.
â€œWe all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,â€ Donovan says. His remarks came in an address to several thousand REALTORSÂ® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORSÂ® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHAâ€™s approved lenders will be permitted to â€œmonetizeâ€ the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Jackie Funk, REALTORÂ®
Coldwell Banker Burnet - Parkway Office
Tel: (612) 423-5170
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Real Estate Tools: http://www.JackieFunk.com