Tax Credit can be used for closing costs

News just out from HUD: Bridge loans received the go-ahead that enable first-time buyers to use the benefits of the federal tax credit upfront (instead of having to wait for the tax write-off).

Under the guidance, FHA approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent. However the loans can’t be used to cover the minimum 3.5 percent downpayment – a sign that the government wants home owners to have at least some skin in the game.

There are also sources of assistance for qualifying buyers who need help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.

For more info on FHA approved condos contact us here at Condo Metropolis: 407-290-3408.

In other good news, more than More than 90 percent of economists think the recession is nearing its end, although no one expects the economy to soar anytime soon.
Source: The Associated Press, Jeannine Aversa (05/27/2009)

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