My New Blog

FIRST-TIME HOMEBUYERS will soon have another option if they want to use their $8,000 tax credit toward a downpayment.  On the tails of a Florida-created program that Gov. Charlie Crist will sign into law, the federal government announced its own downpayment assistance program.

While the tax credit applies to "first-time homebuyers," the term is misleading.  In general, anyone who has not owned a home for the past THREE YEARS is considered a candidate for this program.  Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development (HUD), soon hopes to have additional details as to how soon homebuyers can apply for the credit.

Donovan said that the Federal Housing Administration (FHA) would allow its lenders to credit homeowners up to $8,000 when they close on their home loans so that the cash can be used as a downpayment.  FHA approved lenders will be permitted to "monetize" the tax credit by using short-term bridge loans.

These two programs will allow first-time buyers an opportunity they would otherwise not have and the chance to purchase a home now at low affordable prices that have not been seen in the market for a long time.  Also, these programs are only for this year and a home must close by December of 2009.