$8,000 HOMEBUYER INCENTIVE AVAILABLE IN ADVANCE

According to The U.S. Department of Housing and Urban Development (HUD) the $8,000 incentive for first-time homebuyers has been tweaked from a refund at tax time to cash made available for assistance on down payments or closing costs.

The mechanics of the new program, according to National Association of Home Builders economist Robert Dietz, allow lenders to purchase tax credits from the buyers and then collect the rebate from the IRS.

Homebuyers must still come up with the Federal Housing Administration’s mandatory down payment of 3.5 percent on their own, but they can use the tax credit to lower their principal balance and save on monthly payments.

“Families will now be able to apply their anticipated tax credit toward their home purchase right away,” said HUD secretary Shaun Donovan. “What we’re doing will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”     Read more in the CNNMoney.com article…

Wow. 

Sounds good, and NOW as of mid-July some lenders in Texas are able to offer this great service.  You essentially get the tax credit up front to apply against your downpayment or other closing costs.  Be aware though that FHA guidelines still apply if you are going that route, and an FHA buyer is still required to put 3.5% of their own money down for those type loans.

Ask your lender how this news could affect you and your ability to buy a home in today’s market. 

If you are ready to buy a home, call or email today.   

Posted by Tim Tole, your Southwest Austin Realtor®,Keller Williams Realtors in Austin, Texas, specializing in residential and investment properties in south and southwest Austin. Email Tim at tim@timtole.com, or call for a free evaluation of your home’s value in today’s market. 512-297-8534.