First Time Buyers….Read This!

by Rodney Forbes on May 30, 2009

If you’re a first time home buyer you need to read this. I’ve been predicting for some time now the federal government would allow the First Time Home Buyer Tax Credit to be applied for up front costs.

The Federal Housing Administration rolled out details of its policy Friday that will let first-time home buyers apply an $8,000 tax credit to fund home purchases.

Until now, home buyers were only able to get that money after they bought a home, by applying for the credit–10% of the home’s price up to $8,000–on their tax returns.

The policy change means home buyers, who use FHA-backed financing, can get a short-term loan to help buy a home. The loan is repaid a few months later, after the buyer files an amended tax return and receives the credit.

A few important notes:

This is only for FHA loans, which require a minimum 3.5% down payment.

Borrowers must first come up with the minimum 3.5% themselves. The bridge loan would cover a larger down payment.

Borrowers can still use loans from certain non-profits and state and local housing finance agencies to fund the 3.5% down payment.

Source: The Wall Street Journal

If you are interested in buying or selling a home in the Palm Beach County area, specifically Palm Beach Gardens, Jupiter and West Palm Beach, please visit my Forbes Realty website. For frequently updated information on foreclosures, short sales, real estate news and market conditions visit my South Florida Real Estate Report blog. There are many free reports as well as free access to MLS listed properties. You can also call 561-337-4810.

 

Rodney Forbes is a licensed Realtor®, certified short sale/REO specialist and broker for Forbes Realty of South Florida Inc.

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