HUD COMES TO THE RESCUE…

May 13, 2009 by admin

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MAKING IT THE PERFECT TIME TO BUY YOUR 1ST HOME!

Exciting news today - HUD secretary Shaun Donovan announced that FHA has come up with a way to let First Time Homebuyers use the new $8000 tax credit as part of their down payment when they buy their 1st home. Instead of waiting until close of escrow, then filing your tax returns, and waiting for the check to appear, you will be able to use it at closing. They are arranging for a short-term loan for you to use to close escrow on your home, using your tax credit as down payment money. As soon as you get your taxes done, you will file, (or an amended return, if you’ve already filed.) When you get your tax credit check, you can pay back the short-term loan.

This is so great! While the details are not yet available, it will surely stir up business and increase demand, as buyers can now come up with the money for their down payment (remember, FHA only requires 3.5% down.) - and it’s free money from the government. This is a nice surprise, and a sign that HUD is really trying to help First Time Homebuyers get into their first home. This has to be an FHA loan to do this short term loan – although the tax credit applies to all 1ST Time Homebuyers. Remember too, this year they enhanced the tax credit. Last year it was $7500, and you had to pay it back over 14 years. This year, it’s $8000 and you don’t have to pay it back!

This is hot off the press news and the details are not yet finalized. I’ll update here as soon as we know exactly how it will work. Since this will increase demand, if you’re thinking of buying, you should be getting pre-approved. Not everyone is approved to do FHA loans….but I am…so if you would like more info, go to my website http://www.karenmountain.com and a make sure to mention Women Building Wealth through Real Esate!

Karen Mountain, Certified Mortgage Planner - Guest Blogger
First Priority Financial
To contact Karen send an email to karen@womenbuildingwealththrougrealestate.com