$8000 Tax Credit

Here is the skinny on the 8k tax credit. Moreover, how you can take advantage of it.

Currently, 11 state housing finance agencies (HFAs) offer a product buyers can use that will effectively monetize the tax credit for down payment purposes. Generally, these programs offer tax credit advances with second liens on the home being purchased. The second lien may be “soft” (silent) or require monthly payments but may not result in cash back to the borrower and may not exceed the total amount needed for the down payment, closing costs, and prepaid expenses. The 11 states offering these programs are Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, Tennessee, and Virginia.

On May 29th, FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront. By using a bridge loans, home buyers can help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans however, can't be used to cover the minimum 3.5 percent in any state not mentioned above.

As always, if you have any questions on using the $8000 tax credit, or any loan scenario, feel free to give my mortgage team a call 916-899-4839.