$8,000 Tax Credit as a Down Payment

The Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

From Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development:

"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.”

Also from Donovan: FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Donovan's remarks came in an address to Realtors on Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS Midyear Legislative Meetings and Trade Expo in Washington, D.C.

Jim Starwalt

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Jim Starwalt, Broker Associate RE/MAX Center, Phone: 847-548-2625 Jim@StarHomeFinders.com