Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment.
Put another way, a buyer who qualifies for FHA financing, buying a home for $230,000, would have a normal down payment of $8,050 or 3.5%. The $8,000 government grant available until the end of 2009 would now cover all of the down payment (less $50)! Since we are in a buyer’s market and buyer’s closing costs are nearly always negotiated into the purchase price, this means that first time buyers will now be able to get into a home with low interest rates and with little to no down. For a complete explanation and all the details call Kristen at 801-913-7367.