This is an update to the blog...
Here is the article direct from Realtor.org...May 29, 2009 HUD: Tax Credit Can Be Used on Closing Costs
FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.
Under the guidance, 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. YOU MUST HAVE AT LEAST THE 3.5% Down payment in your savings now.
Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent down payment.
The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.
In addition, some state housing finance agencieshave developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their down payment. These programs are separate from what HUD announced today. ASK YOUR LENDER for details.
THIS IS NEW NEWS SO PLEASE CONTACT YOUR FHA LENDER OR MORTGAGE BROKER FOR MORE INFORMATION. LAS VEGAS MAY NOT HAVE PROGRAMS IN PLACE JUST YET SO KEEP THAT IN MIND WHEN YOU CALL YOUR LENDER. IF YOU NEED A LENDER FEEL FREE TO EMAIL OR CALL ME FOR A LIST.
So, for those of you who have your down payment, you should continue on with that home purchase and you will just have to wait until you file your return to realize your First Time Home Buyer credit.
For those of you who don't have the down payment,,,,well,,,get saving! Here is an example of what you may need....
$100,000.00 home purchase = $3,500.00 down (this is assuming a 3.5% down payment getting an FHA loan and does not include closing cost)
If you are in the market to sell your Las Vegas home and are not working with a Realtor, call me. I would be happy to help you through the process of selling your home.
If you are in the market for a Las Vegas home and are not working with a Realtor, call me. I would be happy to help you through the process of buying a home.
Century 21 Aadvantage Gold
614 N. Rainbow Blvd
Las Vegas, Nv 89107
First Time Home Buyer Credit IRS INFO
Office Phone: (702) 812-4550
Cell Phone: (702) 812-4550
Dawn Barrier at HOMESMART ENCORE Las Vegas, Nevada
Las Vegas, Nevada
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