We've been receiving calls all day about the "announced" ability to use the $8000 first-time homebuyer tax credit FOR DOWN PAYMENT. "
HOLD YOUR HORSES... it doesn't exist.... YET!
HUD Secretary Donovan appeared at a NAR function earlier today, and this is an exact excerpt of his remarks:
"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a downpayment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to "monetize" the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly."
Okay - so what does that MEAN? It means that they are about to "officially" put their stamp on approving the process (and authority) on who/where/why/when a first-time homebuyer can get a LOAN for the $8000 tax credit - to be used as part of the required down payment!
THIS IS HUGE! As soon as the "official" announcement is out, we will get it to you.
This could be a real boon to first time homebuyers. It sounds like the Lender will decide who gets to use this Tax Credit as dpa. Guess we wait to see the official ruling. Thanks for the update.
This is a smart move that will help thousands of first time buyers. Many of them are short on cash.
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Glad I found this. I just finished reading a blog on Trulia voices that claims that $8,000 can be used as a down payment [without details] and to call for information, [posted this afternoon, 5/13/09]. Looks like folks are already using the "come-on" tactic to get potential buyers to call. I don't think we can be sure of anything yet, can we?
It was a thought and a very good one, once this become reality (if it does) it will be a tremendous help for those who do not have the necessary funds to put as down payment, however where is this money coming from? Cash must be made available and so far nobody knows if there is any in the stimulus package ready. As Realtors obviously we would love to see that happens, we will keep an eye on it!
Antonio