Shaun Donovan, Secretary of the U.S. Department of Housing and Urban Development (HUD), announced to the National Association of Realtors today, Wednesday, May 13, 2009, that FHA loan borrowers will be able to put the first-time home buyer tax credit toward the down payment for their home.
"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 down payment," Donovan announced. "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."
Tax credits are superior to tax deductions because a credit is a dollar-for-dollar reduction in your taxes. In order to qualify for this down payment assistance, you will have to purchase a house in the U.S. between April 8, 2008, and December 1, 2009, and not have owned any other main home during the three year period ending on the date of purchase.
If you are looking to purchase a home and would like to take part in this HUD program, visit CREFCO to apply, or call us toll free at (866) 854-4242.
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