Using Your $8,000 Tax Credit as a Down Payment on a Home
Louisville, KY FHA Mortgage Loan
The FHA has announced a new program to allow people who have not owned a home in the previous three years to apply their $8,000 tax credit to the down payment of a new home. The details have not been officially released, but this down payment assistance program will allow home buyers to secure a second mortgage on their new home that will be paid off when they receive their $8,000 tax credit. This will represent a change of direction for the Federal Housing Administration (FHA) who only recently ended the practice of third-party down payment assistance.Because this down payment assistance program is not yet official policy, many lenders will not be aware that this assistance will possibly become available in the near future. If you have contacted a mortgage lender who is not aware of the loan program contact me and I will give you a list of lenders who do offer access to down payment assistance programs.
Hopefully, this program will provide a simple way to use the $8,000 first time home buyer's tax credit as a down payment on your new home. This is one more reason why it is a great time to buy a home!
