Fresh off the press! The incentives keep getting better for first time homebuyers throughout the country. Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit lenders to allow homeowners to use the $8,000 tax credit as a downpayment.

The best part is the $8,000 does not have to be paid back. Secretary Donovan said that important changes, which the National Association of Realtors® has been calling for, will help consumers purchase a home. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

This is a great idea and will help our economy grow, however it is not in effect today, tomorrow, or this month. If you noticed, he said that FHA is going to permit, not has permitted and provided to it lenders the details, to allow homeowners to use those funds at closing for the down payment. One other thing, my initial interpretation is that  it will be for the down payment only, not closing costs, pre-paids or tax prorations, we still may be able to get seller concessions.

You have to close on your home by December 1, 2009. Obama and his administration is obviously trying to stimulate the housing market. This is an unbelievable opportunity to be able to buy a home at prices comparable to the 1980's and interest rates around 4.75% on a 30 year fixed mortgage.

For more real estate news check out our Metropolitan Detroit Real Estate Blog or to search homes in Michigan check out our state of the art website.

Image courtesy of Amagill on flickr

• Rate this Post!

  Select Your Rating:

  • 5 Stars (Excellent!)
  • 4 Stars
  • 3 Stars
  • 2 Stars
  • 1 Stars (Poor)

• Share this Post

  Share With A Friend:

  Your Name Your Email

  Friend's Name Friend's Email

  Optional Message

  Send

• Print
• Social Bookmarking

  Add to Bookmarks: