Anyone know of a lender in Oregon using the $8000 first time home buyer for down payment?
Answers (7)
Tax credit NOT eligible for down payment
Federal officials reversed an earlier decision to allow first-time home buyers to use an $8,000 tax credit to borrow the down payment on a home.
For tax credit details see link below
Links:
I checked several sites, It seems the money may be used to pay closing costs, but not the down payment. Of course the government can always change their mind!
Randy B
Realtor at Metro Brokers/GMAC Real Estate
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Technically the tax credit can be used as a down payment. But don't expect to find any lenders that are willing. And the downpayment required from the buyer is still 3.5%.
"In addition, approved FHA lenders will also be able to purchase a home buyer’s anticipated tax credit to pay closing costs and downpayment costs above the 3.5% downpayment that is required for FHA-insured homes."
Here is a blog from Judy Jones, VP of Metro Brokers Financial that explains.
http://blog.metrobrokers.com/2009/06/03/more-of-the-same-from-hud/
Links:
Tita G
Realtor Keller Williams Realty | Loss Mitigation Certifed | ABR | GRI | Certified Short Sale Professional
Here's a link that shows how to monetize the $8K tax credit. The 3.5 minimum downpayment must first be satisfied by the buyer prior to the use of the tax credit.
I'm in FL and not very many lenders are in it.
Links:
Donald T
"The Ace of Answers." Owner, Solutions 3D. We buy, sell, and lease real estate. http://www.Solutions3DHome.com. Realtor.
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Other answers below are correct. It can't be used as a down payment, though it can be used for closing costs.
However, you could get creative and find someone (an individual, for instance) willing to lend you money against the tax credit. For instance, someone might be willing to create an $8,000 note and give you $6,500 (for instance) against repayment of $8,000.
Any lender should be able to assist you with that? If there is a BofA, try them.
Santiago O
Realtor and Consultant for Hispanic Advertising & Marketing
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Twice now HUD has tried to get this out with bridge loans to make it work, and it has been struck down. They are still trying, but the issue remains that if the home does not get purchased and the deposit is not returned, how does HUD protect its risk? As of now, there is no $8,000 as part of the down payment. It is only accessible as tax return.
