Check with your local loan officer, some or most states this might not be available. Sorry Minnesota, not available Here is a link on how to apply the first time home buyer tax credit as a down payment
So it looks like this $8000 Tax Credit will be available for down payment after all. The idea first came up a couple of weeks back about being able to use the tax credit towards a down payment but then it looked like the details came out to soon and it was pulled of the table.
HUD released a new statement today and the Federal Housing Administration (FHA) laid out the details. Now home buyers can get instant gratification out of the tax credit incentive if so desired. The big kicker to the $8000 tax credit being used as a down payment is you still have to come up with the required FHA minimum 3.5% down for the payment. The home buyer tax credit can also be used for closing costs.
You can view HUD Mortgagee letters along with form 9-15, which covers all the information for the housing tax credit. All the guidelines for FHA-insured mortgages are included in form 9-15, which would be details on federal, state and non profit agencies dealing with the tax credit.
FHA has a list of approved lenders that can use the bridge loan type product.
Although I don’t see a big overall impact to the Minneapolis/St. Paul real estate market, it does give first-time home buyers another option when it comes to purchasing a home. As a reminder that this $8000 home tax credit is outta here by December 1st, 2009 which for some seems like it is coming up fast (about 5 months until to December, weird to think about).
If you are thinking about doing something, don’t wait until the last minute If you have any questions just let me hear it.