Home Buyer Tax Credit
Buyers used to have to wait for the $8,000 credit through their taxes. Now, in some situations, it can be used as part of the down payment.
FHA FHA FHA
First time home buyers must be using FHA-approved lenders and be buying an FHA insured home.
You still have to put 3.5% down. The $8000 can be used to increase your down payment and make you a better borrower, and thus get you a lower rate, or towards your closing costs like title insurance.
Check with your mortgage person to see if you can or should participate.
That’s my explanation. Here’s theirs:
According to the California Association of Realtors, “U.S. Dept. of Housing and Urban Development (HUD) Secretary Shaun Donovan recently announced that the Federal Housing Administration (FHA) will allow home buyers to apply the administration’s new $8,000 first-time home buyer tax credit toward the purchase costs of a FHA-insured home.
The American Recovery and Reinvestment Act of 2009 offers home buyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS.
Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate.”