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$8,000 HOMEBUYER INCENTIVE AVAILABLE IN ADVANCE
NEW YORK (CNNMoney.com)
–
The U.S. Department of Housing and Urban Development
(HUD) announced Friday that its $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."
Courtesy of
RECON
Real
Estate Center Online News
June
2, 2009
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