Home Buying in 55347>Question Details

Dave Foulke, Real Estate Pro in Eden Prairie, MN

I've heard that the $8000 tax credit can now be used for the downpayment on an FHA loan. Is this true?

Asked by Dave Foulke, Eden Prairie, MN Thu May 14, 2009

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Another interesting discussion if any are interested............http://activerain.com/blogsview/1074036/fha-lenders-to-allow…
1 vote Thank Flag Link Thu May 14, 2009
You might find this interesting..... http://activerain.com/blogsview/1075899/using-first-time-hom…

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.

Dunes
1 vote Thank Flag Link Thu May 14, 2009
Dave,
Sorry, we've just found out that it's been taken off the table. Read my blog.
0 votes Thank Flag Link Fri May 15, 2009
This is what I posted on my Facebook site for clients-
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.

http://www.hud.gov/news/speeches/2009-05-12.cfm
0 votes Thank Flag Link Fri May 15, 2009
Very interesting! It will be nice when this is all cleared up, as there is a plethora of conflicting info out there. Thanks Dunes!
0 votes Thank Flag Link Thu May 14, 2009
Hi Dave:

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 REALTORS® has been calling for the change.

“We 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,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says 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.
ource: NAR


Jackie Funk, REALTOR®
Coldwell Banker Burnet - Parkway Office
Tel: (612) 423-5170

Performance * Integrity * Professionalism * Leadership

Real Estate Tools: http://www.JackieFunk.com
0 votes Thank Flag Link Thu May 14, 2009
Hi Dave,
This is great news! Take a look at the Blog section here on Trulia. There has been a lot of good info posted on this subject today. Take it easy!
0 votes Thank Flag Link Thu May 14, 2009
Yes, this is true...now the process needs to be worked out on how that credit is going to be processed. It is wonderful news for first time homebuyers....get qualified and start shopping . This information was obtained on the National Asscoation of Realtors website. There are signs the market is starting to stablize so there is no better set of circumstances than now. Good Luck! Barb Athanas/Windermere Real Estate/Mill Creek, Wa.
0 votes Thank Flag Link Thu May 14, 2009
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