Most buyers don't receive the $8K until after they file their tax returns so that has reportedly discouraged some people from utilizing the credit. The NAR (National Association of Realtors) has been asking for this change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. Donovan's remarks were made in an speech to several thousand Realtors gathered at "The Real Estate Summit: Advancing the U.S. Economy," Tuesday morning at the 2009 Realtors Midyear Legislative Meetings & Trade Expo taking place this week in the nation's capital.
Donovan added that only FHA’s approved lenders will be permitted to “monetize” the tax credit by way of a short-term bridge loan, thus allowing eligible home buyers to access the funds at the closing table.
To learn more about using the tax credit as a down payment on your next home purchase, click here for the full article or call Lake & City Homes Realty at (563) BUY-SOLD (563-289-7653) to be put in touch with an approved FHA mortgage lender.
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Jolenta Averill, Principal
Lake & City Homes Realty