March 11, 2010 at
4:34 pm
Recently on my Facebook Fan Page, I posted an article on the fact that you can use your tax credit as a down payment. A lot of questions arose as to whether or not, with the extension and expansion of the homebuyer tax credit, this statement was still valid.
I, Joe the Homebuyer/blogger, want to clarify that YES you can use the tax credit towards your down payment.
The U.S. Department of Housing and Urban Development (HUD) has a program that allows borrowers to use the first-time home buyer tax credit for a down payment or closing costs on a FHA-insured mortgage.
The only stipulation is that the FHA requires that a minimum of 3.5 percent of the down payment must come from the homebuyer’s own funds (and cannot include the proceeds of the sale of the anticipated tax credit or any other funds provided by the mortgagee, seller or any other party of interest to the transaction).
Okay. I hope this information helps! If you have more specific questions, click on the above links, @ or DM me on Twitter, or write your question on my Facebook Fan Page wall.
Happy Homebuying!
Joe
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Categories: $6500, $8000, Claiming tax credit, Down payment, Expanded homebuyer tax credit, Extended and expanded tax credits, First-time homebuyer, Homebuyers, Mortgage rates, Starting out, Wisconsin Realtors, Wisconsin current homebuyer, Wisconsin first-time home buyer, Wisconsin homebuyer, Wisconsin real estate, Wisconsin tax credits, current homebuyer
