$8,000 -Down Payment Assistance!
As I am sure you are aware, first time home buyers qualify for an $8,000 tax credit if they purchase a new home between January 1, 2009 and December 1, 2009. The credit can be applied to their 2008 return, by filing a simple amendment. What you may not know is this: First time buyers can now use that $8,000 tax credit as their down payment!
The National Association of Realtors has been urging the Federal Housing Administration to allow the down payment option. On Tuesday, May 12, 2009 it was decided that the down 
payment option would be allowed. Many buyers have taken advantage of the $8,000 tax credit, but still others have put off buying a new home because they didn’t have enough money for a down payment. This is great news for buyers using FHA financing, which only requires a 3.5% down payment!
Qualified home buyers will need to use a lender approved by the Federal Housing Association to take advantage of the down payment option. Using an approved lender will allow buyers to have the funds available on the day of closing. Need help finding a qualified lender? We are happy to connect you. The Kuchta’s - Kelly & Colleen 262-894-6512 or ckuchta@shorewest.com 
Final approval for the down payment option was given May 29, 2009. There are 2 ways to use the tax credit as your down payment. The first way is called Secondary Financing; you would secure a loan and a 2nd lien in order to get the money, and use it as your down payment. The second way to use the tax credit as your down payment is called Purchase of Tax Credit. Your lender ‘purchases the tax credit’, and it is used towards your down payment. There are several conditions to be met for each of these options. FHA will also be tracking the monetization activities.
For all the rules or help finding a qualified lender, contact The Kuchta’s - Kelly & Colleen 262-894-6512 or ckuchta@shorewest.com.
Posted by:
Colleen Kuchta
