FHA Approved $8,000 for Qualified First Time Home Buyers Down Payment
!! UPDATE SEE BELOW !!
As qualified first time home buyers look to buy there first home in this unbelievably hot market, opportunities continue to get even hotter!!
- Homes priced under value
- Interest rates at historical lows
- Tons of buyer incentives
- NOW $8,000 provided upfront instead of a tax refund
Washington State has joined 1 out of 10 states in the US to allow the first time home buyer tax credit of $8,000 to be given upfront. This allows many buyers who do not have a down payment or money saved for closing costs, but has a stable income to qualify for buying. The main requirements today for purchasing a new home include a minimum of 3.5% down payment for a FHA home loan, established credit, low debt to income ratio.
The $8,000 was suppose to be given as a tax refund but Shaun Donovan, Secretary of the US Department of Housing and Urban Development announced FHA is going to allow lenders to allow qualified home buyers use the $8,000 as a down payment.
Through FHA home loans, FHA approved lenders will allow the tax credit to serve as a short term bridge loan. The bridge loan will guarantee the $8,000 to be available at closing.
This will allow create a huge amount of opportunities for all first time home buyers looking to purchase in 2009.
FYI: As a FHA approved lender, I have not received any new information about this process and the exact start date. We will continue to post more information as it is released.
Update as of June 6, 2009
“Important update as more guidelines become available. Depending on how you apply for the $8,000 credit as a qualified first time home buyer, either through a state housing agency or a private lender, you have two very different financing options. Washington has about 10 approved agencies to assist with this.
If you apply with a state agency you can use the max qualifying credit in your situation towards the down payment, closing costs, prepaids, and buying the rate down. These funds will be given in the form of a bridge loan. No exact terms have been given on the interest rate or repayment of the bridge loan.
Private lender will require money out of your own personal pocket or with a gift from family upfront. This route is not looking like a 100% type of loan. You will need to have a partial investment upfront, specific details have not been announced as well.”
Also Washington State originally stated the $8,000 will be available to all qualified first time home buyers. Hopefully more news will be released regarding conventional loans and if the $8,000 will be approved for down payment assistance.
We thank you for the continued support!
The Mortgage Reel