Details are in from HUD on how the $8000 1st time home buyer credit is to be handled through the escrow process;
Released 6/1/09 from Brian D Montgomery Assistant Secretary for Housing
First Time Home Buyer may use $8000 tax credit for closing costs, prepaids, buying down of interest rate, or downpayments over and above the 3.5% required by FHA.
Though home buyers may not use towards the 3.5% minimum downpayment but can increase the downpayment using the tax credit.
This is all new to the market and buyers and their lenders will be scambling to make this happen. Basically, it is moving the credit forward and handled through the escrow of closing.
FHA expects due diligence from lenders and buyers alike to ensure tax credit entitlement is not taken advantage of and will require FHA to monitor.
For more information about the $8000 tax credit and how you can take advantage of free money, give us a call.
Roberta Nopson 503-495-5231
Accredited Buyers Representative
