Tax Credit = Down Payment and/or Closing Cost Assistance????
It looks like the home builders got out ahead of the rest of us on this one. If you have seen the advertising from builders lately they mention monetizing the tax credit so it can be used for upfront cost on an FHA backed loan. Buyers still have to have 3.5% stake (down payment) in the property but they can use the tax credit (monetized) to cover closing cost and pay additional money down.
There are two programs that are available to the first time buyer, the 90-Day Down Payment Assistance Program and the Mortgage Advantage Program. There are requirements that have to be met for each program and the money does have to be repaid. There is a $250.00 administrative fee charged for each program. The eligibility cutoff for this program is December 1, 2009.
If you are in the market for a home and feel this program could help you give me a call and let me get you in touch with a lender that is up to speed on this program.
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