First Time Buyer Credit as Down Payment on Again?

According to a press release issued today by HUD, using the $8000 first time buyer credit as your down payment is back on:

For Release
Friday May 29, 2009

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today’s announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to “monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate.

We’ll see if it sticks this time.  It was previously announced and then retracted.  As of this posting time, I’m not finding any mention of it on the news websites or Google to confirm.

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