Tax Credit Usable as Down Payment

This is huge news. Not only is there an $8,000 tax credit for first time homebuyers, now the government is allowing these homebuyers the ability to use that money directly at the settlement table toward their closing costs! This is huge! THis means home owners can get into houses for nearly nothing down at amaizng rates! Read on:
WASHINGTON, May 12, 2009

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment. “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 downpayment,” Donovan said. According to Donovan, the 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.

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