We’ve been talking to people recently about how great it is for first time home buyers to get a tax credit of up to $8,000 after closing on a home purchase. For many people, that works just fine- they close the deal and a few weeks later they get an $8,000 check from the feds. However, for many, that is out of reach because they don’t have the funds to cover a downpayment and closing costs, and getting the money later will not help this. I’ve mentioned this before because some states have been working on a state-level solution to this.
I just saw a news report from the National Association of Realtors that Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development has announced that it will allow its lenders to use the $8,000 as a down payment. This will remove a significant barrier for many buyers. See an article written in the Realtor.org website about this HERE. I had seen Donovan interviewed yesterday, and when asked about the possibility of extending the tax credit beyond first time home buyers, he didn’t exactly embrace it, but didn’t dismiss it either. Obviously, that would add to the federal debt, but could also be a more effective catalyst for getting the economy going again. If that served to reinvigorate the economy, then it would be a great investment toward getting business, and thus, tax revenues going again.
Stay tuned.
![Cento per farne una [EXPLORE]](http://static.flickr.com/7155/6845993701_096381fb6e_t.jpg "Cento per farne una [EXPLORE]")
Hello,
I heard that using the $8,000 towards your downpayment has been put on hold. Is this true? I’m looking to buy my first house by September and was just wondering what this information is all about. I could really use the money. I’m buying a house in NJ and the priced aren’t cheap!
Thanks!
Just keep an eye on my posts on this subject. I commented today that we’re back on track from HUD’s stanpoint, but the lenders are still not fully set to do it. They’re still getting clarification from the feds on how this would work and how to implement it. I think they’ll get it working in a week or so because it opens up the market to a lot more buyers.