Recently the FHA revised some of its guidelines and announced that they would allow first time home buyers to apply the $8,000 tax credit to offset the costs associated with obtaining FHA mortgage financing.
Heather Barr over at The Phoenix Agent blog has a great blog post detailing all aspects of this provision. For one thing you can use the $8,000 to cover closing costs, include additional cash down payment and any mortgage interest rate buy-down costs. Notice you can’t use these funds to cover the required 3.5% down payment. Read Heather’s post for additional details.
Here is a portion of the HUD announcement for those interested:
WASHINGTON – Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration’s new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today’s action will help stabilize the nation’s housing market by stimulating home sales across the country.
$8000 Tax Credit May be Extended
Last Call for Tax-Credit Buyers!!
$8,000 Slipping Away…
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on Jun 7th, 2009 at 1:24 pm
Hey, thanks for the link love Shailesh and Aimee! I’ve got a couple of first time buyers who are really excited about buying now that this announcement has come out. It may not the perfect time to buy for EVERYONE, but I’m looking forward to helping a few more people get their piece of the American Dream.
Heather Barr´s last blog post..More on Landmark Towers
on Jun 10th, 2009 at 3:05 am
For the FHA to accept the tax credit to cover loan costs is great. I think right now is such an opportune time to invest in a home, prices are low, tax credits are around, and hey, it’s always the right time to get your dream home!
Micha´s last blog post..Changes in $8,000 Housing Tax Credit for First-Time Homebuyers to Include Downpayment Assistance
on Jun 17th, 2009 at 9:15 pm
Hey Aimee!
I’m just visiting a lot of blogs lately. A lot have been saying positive things about the industry. But I agree with Heather that it’s not the right time to buy for everyone.
I sure hope we’ll be out of the woods soon. For now, I’m keeping my fingers crossed.
-Nicole
MN Homes´s last blog post..Search for Homes $500k-up
on Jun 18th, 2009 at 3:53 pm
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