Use the first time $8,000 tax credit for your down payment

Tuesday HUD’s Federal Housing Administration said it would allow first time homebuyers to use the Federal tax credit of $8000 toward the down payment at closing on a purchase.  WOW!  They are going to allow approved lenders and local and state governments to issue short term bridge loans to buyers for their down payment.  Once the tax credit is received, the loan would be paid back.  BUT (isn’t there always a “but”??) lenders need to figure out how to create the qualification method, the proper and legal paperwork, and have all these details approved by FHA……..the tax credit expires December 1st so they better get moving!!  HUD predicts that 53% of the purchases in 2009 will be by first time home buyers.

 

PS: for a look at current Marin home sales stats follow this link.

 

Warren Carreiro, Broker

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