HUD Announces $8000 Tax Credit Can go to Closing Cost, etc.

In a zippy, an unexpected twist, HUD announced today the $8000 tax credit can be used as a bridge loan to help cover closing costs as well as an addition to the 3.5 % required down payment.  First time homebuyers must still cover the 3.5 % down payment and use of the credit can not be applied to cover the 3.5%.

Please keep in mind that a first time homebuyer is someone who has never owned a home, or who has not owned a home in the last three years.

Today FHA approved lenders were given the go ahead to develop these bridge-loan products utilizing the $8000 credit.

The tax credit can be used for additional down payment and cover closing costs or to buy down interest rates. Frequently closing costs come to around 3.5% of the purchase price so this credit being applied can really be the kick some prospective homebuyers are looking for.

More Reading:
It Is Law Now, But What Is It? Clues to the $8,000 Home Buyers Tax Credit.

Comments

comments

Tagged with: , , , , , ,
Posted in Mortgage News
One comment on “HUD Announces $8000 Tax Credit Can go to Closing Cost, etc.
  1. Good update on Real Estate.

6 Pings/Trackbacks for "HUD Announces $8000 Tax Credit Can go to Closing Cost, etc."
  1. […] More Reading: Update on Usage HUD Announces $8000 Tax Credit Can go to Closing Cost, etc. […]

  2. […] looking for a Lake Powell home. Also for a first time homebuyer taking advantage of the new  $8,000 tax credit , this is a super […]

  3. […] HUD Announces $8000 Tax Credit Can go to Closing Cost, etc. […]

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title="" rel=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>