First, if you were not aware of the $8,000 credit that first time homebuyers have access to then read my article on the topic.
Secondly, the Federal Housing Administration (FHA) is proposing a new change to the new tax credit. The government is doing everything conceivable to get people into homes. ( I hope no interest loans is next). In a nutshell, the change would allow borrowers to use the $8,000 credit as down payment when they purchase a home immediately versus waiting for it after filing taxes. Currently, you receive the credit after you claim your purchase on your taxes the following year. In essence, the credit would act as a bridge loan that would be repaid when you do actually get the money.
Theoretically, if you purchased a home using FHA guidelines with 3.5% down payment you could buy a $228,571 home/condo/co-op/multi-family with no money out of pocket–theoretically. Others factors should be taken into consideration–like attorney fees, inspection, and closing costs.
For the full article click here.
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