Tuesday, July 14, 2009

Tax Credit Can now be Used for Down Payment says FHA

In a statement made today, HUD noted that the Federal Housing Administration (FHA) is going to allow first time home buyers to use the $8,000 tax credit as a down payment. Up until now first time home buyers wouldn’t receive the funds until after they filed their tax return.


“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. He went on to say that FHA lenders will be permitted to “monetize” the tax credit through “short-term bridge loans.” This will allow home buyers to access the funds at closing.

Donovan also noted, “I do think we have some early signs that the market overall is stabilizing. Since January we’ve seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate.”

If you are a buyer in our market, these are probably the best buying conditions in 30 years! If you would like to search the Athens MLS please take a look at listings in our “Classic City” today! On this web MLS search solution you can search every listing on the Georgia MLS for the Greater Athens area or in your Georgia town!

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