In his speech at the National Association of REALTORS® Housing Summit on May
12, 2009, US Department of Housing and Urban Development (HUD) Secretary
Shaun Donovan announced a program that allows borrowers to use the
first-time homebuyer tax credit for a down payment or closing costs on a
FHA-insured mortgage. The Secretary said “We think the policy is a real win
for everyone, ensuring that borrowers can tap into the numerous
organizations that are already part of the FHA network to receive this
Remember this tax credit is available to people who have not owned a home in the past 3 years. Now it’s being made available to home buyers UP FRONT rather than with the following year’s tax refund. These funds will literally serve as a down payment on a loan. It gives a huge shot in the arm to a buyer who is attempting to earn equity in their property. This incentive ends December 1st and at this point there are no indications of an extension from the feds. It may be a once in a life time opprotunity for people of all income levels to enjoy an $8000.00 advantage.