$8000 can be used for downpayment

$8,000 tax credit can be used as downpayment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow homebuyers to use the $8,000 tax credit as a down payment.

“We all want to enable FHA consumers to access the homebuyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan said during remarks to REALTORS from across the country assembed for the 2009 REALTORS Midyear Legislative Meetings & Trade Expo in Washington, D.C.

He said FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible homebuyers to access the funds immediately at the closing table.
This March, the New York State Division of Housing & Community Renewal’s down payment assistance program, Assets for Independence (AFI), is expanding eligibility to include all income-eligible New Yorkers, not just Section 8 Housing Choice Voucher clients.

“Despite the recent economic downturn, New York State has literally hundreds of low-to-moderate income households with stable jobs and good credit scores who wish to purchase their first home,” said Deborah VanAmerongen, DHCR commissioner. “The AFI program provides homeowner education and financial training as well as a matched-saving plan that helps these families buy and keep their own home. We are proud to be a part of making these families’ American dream come true.”
 
The monthly saving plan has a one-to-four matching grant, up to $7,500 toward real estate closing costs. Potential first-time homebuyers will also learn how to achieve economic independence during the required financial counseling. Education classes will inform clients on how to shop for affordable mortgages and how to work with a real estate agent or professional home inspector.

More information available at:     www. nysar.com