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FIRST TIME HOMEBUYER TAX CREDIT

Posted on: 19th Nov, 2009 03:03 am
I have read several articles on the net that a first time home buyer can use the $8000 tax credit as a down payment for FHA loans. Can anyone advise if this is correct?
Hi bettyhuck,

As per "http://www.hud.gov/news/release.cfm?content=pr09-072.cfm", you'll be able to use your $8000 first time homebuyers tax credit as a down payment for FHA loans. You can even put in more than 3.5% down payment for FHA loans using this tax credit which may help you get a lower interest rate.

Take care.
Posted on: 19th Nov, 2009 03:13 am
No banks are on board with this as of yet. I have not found a lender whom will allow for the use of the $8,000 tax credit to be used as down payment. So, yes they are allowing for this but it may be a tougher task finding a lender to allow this. I hope this helps...
Posted on: 19th Nov, 2009 09:01 am
yes, you can use the $8,000 tax credit for down payment, but the required 3.5% down payment for FHA loan, you have to provide from your own funds...
Posted on: 20th Nov, 2009 01:45 am
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