By now you’ve probably heard all about the $8,000 first time home buyer tax credit passed by Congress a few months ago. Before now, though, folks couldn’t use the $8,000 toward a down payment because they’d have to file their tax returns in order to receive the credit. Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, says “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.” According to REALTOR Magazine,
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.
This is great news for home buyers! Being able to add $8,000 to your down payment can mean that you can lower your monthly payments and/or get more house for your money. Remember to speak to your lender to get all the details about this tax credit, and how it will affect your mortgage loan.