Coming Soon: $8,000 tax credit to be used for down payment at closing!
On Tuesday (May 12, 2009), the Federal Housing Administration (FHA) announced it will allow first-time homebuyers to use the federal tax credit of up to $8,000 for a down payment at closing – for FHA loans. FHA will allow approved lenders and nonprofits, and state and local government agencies to issue short-term bridge loans buyers can use for down payments. Buyers would repay the loans after getting their tax refunds. This could be good news for first time home buyers, which are slated to account for 53% of home purchases in 2009 - but unfortunately, there isn't much we can do until the details of the program are fully released, and in turn accepted by lenders. I’ll keep you posted!
Remember: FHA already allows the buyer to receive a gift for the down payment (minimum 3.5% down). Many buyer’s are already taking advantage of this unique feature of FHA by getting a $8,000 gift with plans to repay the gift after closing and after they get the $8,000 tax credit (note: even though gifts don’t need to be repaid – a homeowner can always decide to repay the gift if they wish).
As always, if you have any questions, please don't hesitate to call. If you know of anyone looking to Buy or Sell Real Estate in Central Oregon, I would greatly appreciate your referral. Thanks.