$8000 First Time Home Buyer Tax Credit Now Available for Down Payment

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.

About Jason Sandquist

Jason Sandquist is the Founder and CEO of Loop Commercial Advisors, LLC. A boutique commercial real estate firm serving Minneapolis & St. Paul commercial real estate market, as well as surrounding areas . You can also read Inside the Property Lines, a weblog delivering creative thoughts. He works with landlords and owners with leasing assignments and disposition of properties, as well as start-ups and businesses helping them find space and create strategic real estate decisions. He also helps investors with disposition and acquisition of commercial investment properties.

You can follow Jason on Twitter, Facebook and LinkedIn, as well as Google+

Comments

  1. While many housing groups support extending the housing tax credit, others worry that an extension would cause consumers to postpone their decision to buy, rather than responding the urgency of an expiring federal credit. Economists also suggest that expanding the credit to all buyers is less effective economically than the current first-time buyer requirement.

Trackbacks

  1. [...] $8000 First Time Home Buyer Tax Credit Now Available for Down Payment (livingtwincities.com) [...]

  2. [...] Mortgage rates are sitting at record lows depending which day or hour you are looking at. Oh, and there is also that $8000 tax credit that is sitting out there and just announced the use for a down payment contribution or used for closing costs. [...]

  3. [...] and FHA will finalize this sometime next week. Will keep posted. Update 2: New information on the $8000 housing tax credit [...]

Speak Your Mind

*