$8000 tax credit used toward closing costs?
The $8000 tax credit for eligible first time home buyers may be used to cover part or all of the Buyer's FHA closing costs according to the National Assoc. of Realtors. We've been receiving small bits of information about this over the past couple of weeks, I haven't posted much of it because I have yet to receive complete details from a verifiable source. The program works by using the tax credit as a short-term bridge loan, monetizing the credit so a Buyer can use the proceeds at the closing table instead of waiting for next years taxes to be filed. By using the first time buyer tax credit of up to $8000 the buyer does not escape the 3.5% down payment required by the FHA (although 100% financing is available from the USDA), but may be able to buy a property they otherwise could not.
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