$8K Tax Credit Can Now Be Used for Down Payment

Posted by Jolenta Averill on Wednesday, May 13th, 2009 at 12:30pm.

Yesterday the Secretary of the U.S. Department of Housing and Urban Development, Shaun Donovan, stated that the Federal Housing Administration is going to start permitting FHA lenders to allow home buyers to use the $8K tax credit as a down payment.

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.

Hi, and welcome to our Madison real estate blog. Whether you're a consumer, journalist or Realtor, we encourage you to share your thoughts by leaving a comment. Here you'll find relevant local and national real estate information, as well as market statistics, insight, and information about a variety of neighborhoods and real estate listings. If you'd like more information about anything in particular, please use the contact form and I'll be happy to help.

Jolenta Averill, Principal
Lake & City Homes Realty
(563) BUY-SOLD

13 Responses to "$8K Tax Credit Can Now Be Used for Down Payment"

Cary NC Homes for Sale wrote: This is fantastic news! A lot of people were so caught up in the tax credit, they forgot to read the fine print. Hopefully people will start taking advantage of the new tax credit now. I know a number of buyer this would help.

Posted on Thursday, May 14th, 2009 at 9:23am.

Steve Trang wrote: Boy, they didn't take long to find a 100% option again, did they? I'm glad to see this program available. It's too bad it's limited only to people that haven't owned a home in 3 years.

Posted on Friday, May 15th, 2009 at 8:11pm.

Susan wrote: I heard about this change to the $8K tax credit...great news to help first-time buyers. I also wish it would be available to others. I wouldn't mind taking advantage.

Posted on Sunday, May 17th, 2009 at 11:03am.

Charleston SC real estate wrote: I heard it is getting some resistance from the IRS...I hope not. This program should really help some first-time home buyers. Great article!

Posted on Monday, May 18th, 2009 at 12:26pm.

Jolenta Averill wrote: Hey Mike, Thanks for stopping by! I hadn't heard anything about the IRS objecting to the new rules but that wouldn't really surprise me. Here's a link to the full enchilada: http://www.realtor.org/RMODaily.nsf/pages/News2009051202?OpenDocument P.S. By the way, your site looks AWESOME!!

Posted on Monday, May 18th, 2009 at 5:43pm.

Charleston SC real estate wrote: Thanks for the comments about the site! I think all of us out here are just trying to have something near the quality and content of your website. Take care -Mike.

Posted on Monday, May 18th, 2009 at 7:41pm.

Houston Texas Real Estate wrote: That is pretty interesting. Someone asked me about 0 down options recently and I told them they were dead. I guess I was wrong.

Posted on Tuesday, May 19th, 2009 at 4:19am.

Southampton PA Real Estate wrote: Has anyone used this program? Any real life experience?

If you could, share your story.

Posted on Friday, June 5th, 2009 at 2:29pm.

Barbara wrote: I recently bought a house with Jolenta's help. I had already filed a return in February, but after closing on my house in April, I sent in an amended return. I am expecting to see the money in another 2-4 weeks. I did not get a bridge loan to enable me to use the money as a down payment, however. The money will help me replenish the savings I did use for my down payment.

Posted on Monday, June 8th, 2009 at 9:19pm.

Barbara wrote: Here's an update to my previous comment.
I mailed in an amended return April 21 and received the tax credit on June 16. Not quite 2 months.

Posted on Wednesday, June 17th, 2009 at 9:43pm.

wrote: [...]$8K Tax Credit Can Now Be Used for Down Payment


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