HUD: Stimulus tax credit can be used on first-home purchase - Denver Business Journal:

oryucyjofec1482.blogspot.com
Under the American Recovery and Reinvestment Actof first-time homebuyers can qualify for the tax creditg for purchasing their first home afteer filing their taxes. But under a new program announced state housing finance agencies and nonprofit groupd can advance money to homebuyers up to the full amounr of their tax credif so the money can be used on a home either to pay closing costs or to add to adown "Home buyers using FHA-approved lenders can apply the tax creditt to their down payment in excessx of 3.5 percent of appraised value or theidr closing costs, which can help achievse a lower interest rate," a HUD announcement said.
"Familiexs will now be able to apply theie anticipated tax credit toward their home purchase right Donovan said inthe announcement. "Att the same time we are putting safeguards in place to ensurs that consumers will be protected fromunscrupulous lenders. What we're doing today will not only help thesew families to purchase their first home but will presentf an enormous benefit for communities strugglint to deal with an oversupply of housing." The stimulus tax credit can be claimed on a taxpayer's 2009 return, or througy an amended 2008 FHA will still require that homebuyers pay a 3.
5 percent down HUD cited National Association of Home Builder s data showing that the first-time homebuyer tax credit will stimulats 160,000 home sales across the with 101,000 of those sales being to first-time buyers and 59,00o to existing homeowners who be able to sell their home to a first-tim buyer. .