Under guidance of FHA approved lenders bridge loans can now be developed so First Time Home Buyers can use this money to pay closing costs, buy down their interest rate, or pay a larger than required down payment. This information is from Realtor.org. The tax credit can not be used to pay the minimum down payment of 3.5% required by FHA, however, one can get a gift from a relative or interested party to pay the 3.5% required, then apply the $8,000 tax credit to make an additional down payment, if they wish. Since this breaking news many are considering using the credit to pay the closing costs, if they have the minimum down payment.

The First Time Home Buyer Tax Credit was enacted earlier this year to help encourage households to enter the housing market while interest rates are low and affordability is high. The $8,000 credit is available to households that haven’t owned a home in at least three years and does not have to be repaid. It is fully reimbursable so households can get the credit in the form of a payment.

The tax credit dollar amount decreases for single buyer’s earning more than $75,000 and up. For home buyers filing jointly it decreases from $150,000 and up. The buyer does not need to repay the tax credit, if he or she occupies the home for three years or more. However, if the property is sold during the three-year period , the credit will be recouped on the sale.

You will find many affordable homes on my web site at: www.FindaPlaceWithStyleNgrace.com.  If you would like to know more about the First Time Home Buyer Tax Credit, please contact me at gracehughesjax@gmail.com or Call me at 904-233-1341.  I am not an accountant, however, I can put you in touch with the people that can make it happen, if you qualify.