First Time Home Buyer Tax Credit Update

Perhaps many of you have heard about the new FTHB tax credit changes on the news or read about it on the Internet.  The US Housing and Urban Development Secretary released a statement that the $8000.00 can be used as a down payment in late May.  However, if you are considering an FHA loan you need to know that FHA does not support this change.  At this point in time, FHA will not allow a Buyer to use the $8000 towards the 3.5% initial down payment required for their program.  Make sure you consult with your Mortgage Lender before assuming you can use the credit in this manner.  We have a great list of Lenders on our website that can help you navigate through the home buying process in addition to explaining both the tax and mortgage credits. Click here for information on how to use the $8000 towards your closing costs.